Answer:
1.3%
Explanation:
The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate.
real interest rate=nominal interest rate-inflation rate
nominal interest rate=4.7%
inflation rate= 3.4%
real interest rate=4.7%-3.4%
real interest rate=1.3%
According to this, the answer is that the real interest rate is 1.3%.
Answer:
b
Explanation:
The key to choosing the "right" form of ownership is understanding how each form affects both business and personal circumstances.
Basically there are three types of ownerships in the market sole proprietor, partnership and corporation. So, choosin the right kind of ownership does affect both business and personal circumstances
Answer:
3.72 years
Explanation:
The cash payback period of this investment is the initial investment of $142,104 divided by net increase in cash in cash flow per period.
Cash Payback Period = Initial Investment
/Net increase Cash Flow per Period
Net increase in cash flow per period=$80,000-$41,800=$38,200
Cash payback period=$142,104/$38,200=3.72 years
It would take 3 years 9 months(0.72*12 months) for the project to pay back its initial investment of $142,104