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3 years ago

State two differences between savings and investment

Business

2 answers:

Lana71 [14]3 years ago

7 0

Answer:

Savings: is setting aside money so you dont need to spend your money for anything, only for emergeincies. Investment: is when you are buying stocks or bonds your are making an investment.

laila [671]3 years ago

5 0

Answer:

Saving is setting aside money you don't spend now for emergencies or for a future purchase. ... Investing is buying assets such as stocks, bonds, mutual funds or real estate with the expectation that your investment will make money for you. Investments usually are selected to achieve long-term goals.

Explanation:

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. Chandler Tire Co. is trying to decide which one of two projects it should accept. Both projects have the same start-up costs.

Alex787 [66]

Answer:

So project two is better because it will increase the wealth of Chandler Tire by $ 18,598.33 more than Project 1

Explanation:

To determine which project to be selected, we will compute the present value (PV) of the two projects and select the one with a higher PV.

Present value is the today worth of the future cash inflows from a project. The higher the present value the more wealth is been created. So a project with a higher PV is better if two are been compared.

So when comparing two projects, the one with a higher PV is better.

PV of Poject 1

PV = 52,000 × 1-(1.015)^(-6)

$196,793.10

PV of Project 2

PV = 48,000 × 1- (1.015)^(-8)

$215,391.43

So project two is better because it will increase the wealth of Chandler Tire by $ 18,598.33 more than Project 1

4 0

3 years ago

Orin creates an irrevocable living trust to pass his 1/3rd of his assets, including stock in Petro Oil Company and other busines

Lera25 [3.4K]

Answer:

C. Except it isn't Orin that will avoid the taxes, but his heirs.

Explanation:

3 0

3 years ago

A deductible requires a person with an insurance policy to:

luda_lava [24]

Answer: Pay the X amount of a service or prescription that is not covered by insurance.

Explanation:

4 0

2 years ago

How do future expectations of an improving economy affect aggregate demand

Vanyuwa [196]

Answer:

Increase the aggregate demand. This means, that the total demand for goods and services within a particular market will increase

Explanation:

The future expectations of an improving economy increase the aggregate demand. This means, that the total demand for goods and services within a particular market will increase as there is more trust in the market.

The rise in the income is another important factor for the aggregate demand to increase. With improving expectations the consumers will think that they income will improve and therefore their consumption levels.

3 0

3 years ago

Mannarelli Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the mon

Serjik [45]

Answer:

$ 5.34

Explanation:

Calculation for cost per equivalent unit for conversion costs for September

First step is to find the Equivalent units of production

To complete beginning work-in-process:

Conversion 12,000

[15,000 units × (100%-20% )]

Units started and completed 65,000

(89,000-24,000)

Ending work-in-process

Conversion 21,600

(24,000 units × 90%)

Equivalent units of production 98,600

Second step is to calculate the Cost per equivalent unit using this formula

Cost per equivalent unit =Cost added during the period ÷Equivalent units of production

Let plug in the formula

Cost per equivalent unit = $526,524÷98,600

Cost per equivalent unit = $5.34

Therefore The cost per equivalent unit for conversion costs for September is closest to $ 5.34

7 0

3 years ago