These investments are commonly used when a business has a short-term excess of funds on which it wants to earn interest, but which will be needed to fund operations within the near future. These types of investments are usually very safe, but also have quite a low rate of return.
Answer:
The interest revenue will Savor record in Year 1 on this lease at 9% is $347,697
Explanation:
Present value of Lease Payment = $4,561,300
Less: First Payment on Jan 1, 2018 = $698,000
Remaining Balance = $3,863,300
Interest Revenue for Year 1 at 9% = $3,863,300 × 9%
Interest Revenue for Year 1 at 9% = $347,697
Answer: shift to the left
Explanation:
The social return helps in comparing the value of benefits and the costs to achieving the benefits. The social return is the ratio of net present value of the benefits in comparison to the net present value of the investment or the costs to getting the benefits.
In this case, if a small electric automobile manufacturer is able to gain the social return generated by its electric motor, it would decrease the demand for financial capital which simply means that the demand for financial capital will shift to the left. This shift to the left is as a result of the gain in its social return gotten by the electric motor.
<span>Small businesses are hesitant to involve in global business because it involves various trade laws or tariffs. Taking that kind of plunge in the business world for a business of small scale is risky situation or at least the small business owners feel. Sometimes this would be the turning point for these businesses to break out huge.</span>
