Any business that is in the tech business, where massive amounts of money go for development and for producton are companies that are very likely to need startup capital from some sort of investor; in this case it can be a venture capitalist but it can also be any other type of investor.
Answer:
b. the increase in the interest rate creates an income effect that is greater than the substitution effect.
Explanation:
Interest rate can be regarded as amount that is been charged by lender for using an assets, this asset could be cash, goods, and this is usually display as a percentage of the lent principal.
The income effect gives shows how increased purchasing power can impact consumption, substitution effect on other hands, shows how changing relative income as well prices impact consumption. Both economics concepts give expression of changes that occur in the market as well as how this changes impact consumption patterns as regards consumer goods and services.
It should be noted that the increase in the interest rate creates an income effect that is greater than the substitution effect.
Answer:
2.6 years
The appropriate response to carry out the project if the payback period is within the acceptable payback period of the company
Explanation:
Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.
Payback period = amount invested / cash flow
Cash flows is used in calculating the payback period.
To derive the payback period from net income, add depreciation to net income
$82,000 + $42,000 = $124,000
$321,000 / $124,000 = 2.6 years
I hope my answer helps you
Technology has been very useful for the education. Teachers have found ways in order for technology to be more beneficial rather than detrimental to students. The use of televisions for certain classes allows the students to properly visualize the topics. Also, social media have been grounds for teachers to share their materials to the students and students to their co-students.
Answer:
a. $0.20
b. $322,000
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
.
The amount of depreciation to be recognized for each mile that a rental automobile is driven
= ($15,000 - $6,000)/45,000
= $9,000/45,000
= $0.20
Total millage expected of the 60 cars before disposal
= 60 * 45,000 miles
= 2,700,000 miles
The total amount of depreciation expense that Central Auto Rentals should recognize on this fleet of cars for the year
= 1,610,000/2,700,000 * ($9,000 * 60)
= $322,000
