Answer:
The payback period for this project is 2.43 years.
Explanation:
Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million.
The investment will result in additional cash flows of $525,000, $812,500, and 1,200,000 over the next three years.
The payback period is the time it takes to cover the investment to be covered by returns.
The investment cost remaining in the first year
= $1,850,000 - $525,000
= $1,325,000
The investment cost remaining in the second year
= $1,325,000 - $812,500
= $512,500
The third year payback
= 
= 0.427
The total payback period
= 2.43 years
Answer: Financial Intermediation.
Explanation:
Financial Intermediation is a method of wealth distribution common to Banks, where money deposited by it's customers is given out as loan to investors/individuals. The Banks are known as Financial Intermediaries as they are actively involved in wealth distribution.
Answer:
I would definitely give the same advice. The income potential for a college graduate far exceeds those of a high school graduate. I would be determined to graduate from college, good get a great job and get the loans paid off.
Explanation:
With a great education and a great job it shouldn't take long to get the loans paid off
Answer:
The Sandra's adjusted basis for the automobile after the casualty will be $7000.
Explanation:
Sandra's adjusted basis after accident can be taken out using the following procedure -
ADJUSTED BASIS BEFORE ACCIDENT
-
LOSS DEDUCTION
-
INSURANCE PROCEEDS
we have been given the value of adjusted basis before accident = $11,000 and insurance proceeds as = $3200, but we have to find the value of loss deduction.
LOSS DEDUCTION =
VALUE DECLINE - INSURANCE PROCEEDS
Where value decline is the difference between the market value of automobile before and after accident and insurance proceeds - ($10,000 - $6000) - $3200
VALUE DECLINE - $4000 - $3200
= $800
Now putting all the values in the procedure -
= $11,000 - $800 - $3200
= $7000