Answer:
his investment will be worth $39,944 at the end of 12 years.
Explanation:
FV = PV(1 + i)^n
= $4,700 + $4,700*PVAF(7%,11 years)
= $4,700 + $4,700*7.49867
= $4,700 + $35,244
= $39,944
Therefore, his investment will be worth $39,944 at the end of 12 years.
Answer:
The correct answer is letter "A": Using accelerated depreciation rather than straight line would normally have no effect on a project's total projected cash flows but it would affect the timing of the cash flows and thus the NPV.
Explanation:
Accelerated depreciation is a form of accounting and taxation used in the first years of an asset to allow greater deductions. On the other hand, the deductions are distributed evenly throughout the life of the asset using the Straight-line Depreciation method. Accelerated depreciation facilitates higher expenses to be incurred during the first years of an asset while in use, and lower expenses years later, as long as the asset depreciates.
In that sense, when it comes to the total projected cash flow of a company on a project, neither the accelerated depreciation or the straight-line method would affect it but both of them have impact on the timing of the cash flows since accelerated depreciation demands higher expenses since the beginning of the possession of the assets while the straight-line method keeps the expenses steady. Both, also affect the net present value (NPV) of the company since with the accelerated depreciation the cash flow will be less and with the straight-line method it should be constant.
Answer:
c) Foreign companies tend to reduce the overall number of jobs available in developing countries
Explanation:
The foreign companies that invest in developing countries have their primary goal to make more profit. They achieve this because they manage to produce the same products, with same quality and quantity, but much cheaper. The reason why it is much cheaper is because these companies pay the workers in the developing countries much less than they would pay in their own countries. In general, the wages tend to be around the the amount of what what be the average in the developing country. In order to get workers, these companies tend to provide slightly better working conditions, and they pay on time as well. Also, they increase the amount of jobs in the economy, which is a positive for the people and for those countries.
Answer:
the fact that business firms make investment plans far in advance.
Explanation:
Usually businesses make investment plans years in advance. Imagine if a business plans to open a new factory, just the actual building of the facility may take over a year, plus the time it needs to set up machinery and start production. All that plus the time the company needed to analyze the project plus the time needed to get the money necessary to start the investment.
Answer:
d. increases U.S. imports by $1,000 and decreases U.S. net exports by $1,000.
Explanation:
There are two types of international trades, import and export
Import refers to the trade where the principal country buys goods from another country and takes goods.
Export refers to the trade in which the principal country sells goods from own country and send to the buyer country.
Here principal country is the country of concerned person Mike that is US
Since he purchased he bought goods i.e. Olives from Greece into US.
That means he made a import.
With this US import rises by $1000,
Further net exports = Total export - Total import
Since with this transaction total imports increased by $1,000 net exports will decrease by $1,000
d. increases U.S. imports by $1,000 and decreases U.S. net exports by $1,000.