Answer:
<em>This account should be reported on the balance sheet in the Current Assets section.</em>
Explanation:
Current assets are situated at the start of the balance sheet assets section. This portion of the balance sheet includes some short-term assets that are easiest to turn into cash.
Depending on its comparative ability to generate into money (called the liquidity order), every one of the current asset line items is placed on the balance sheet.
A rightward shift of the investment demand curve will suggest an increase in demand. The reasons for this shift in the right would depend on the situation of the economy. The shifting of the curve may be affected by the following:
1. Level of economic activity
The increase in production would increase the demand thus the curve will shift to the right.
2. Expectations
T<span>he forecasting would also affect the shifting of the curve since they may have forecasted </span>an increase sale<span> of the company</span>
3. Capacity utilization
The larger the utilization of the capacity of the stocks, the larger would be the demand.
4. Cost of capital goods
T<span>he cost of constructing or producing capital would also affect the investment demand since investors would always look at the potential returns.</span>
All sources of income is known as Taxable income.
Answer:
$714,975
Explanation:
Data provided in the question:
Annual return = $150,000
Time, n = 6 years
Annual return, r = 7% = 0.07
Now,
Amount willing to pay for the project
= Present value of annual cash flows discounted at 7%
= $150,000 × [ (1 - (1 + r)⁻ⁿ ) ÷ r ]
= $150,000 × [ (1 - (1 + 0.07 )⁻⁶ ) ÷ 0.07 ]
= $150,000 × 4.7665
= $714,975
It is easy to start a mma investment
