Answer:
Jessica calls her colleagues informing them about her new bakery business.
Explanation:
Answer:
sorry, I can't any answer
Answer:
It will take 3 years and 66 days to pay for the initial investment.
Explanation:
Giving the following information:
Cash flows= $615 for 8 years
Initial investment= $1,750
<u>The payback period is the time required to cover for the initial investment.</u>
<u></u>
Year 1= 615 - 1,750= -1,135
Year 2= 615 - 1,135= -520
Year 3= 615 - 520= 95
Exactly:
(95/520)= 0.18*365= 66
It will take 3 years and 66 days to pay for the initial investment.
Answer:
option B
Explanation:
Reinvestment risk refers to the possibility that potential cash flow will have to be invested in low-yielding assets, like coupons (the annual interest charges on the bond) or the eventual returns of the investment.
Reinvestment risk refers to one of financial risk's primary styles. The term is used to describe the threat of anyone canceling or stopping a particular investment, which one might need to find another place to reinvest the cash with the risk of not getting an equally attractive prospect.
Thus, from the above we can conclude that correct option is B .
Answer:
The answer is stated below:
Explanation:
The accounting equation is as follows:
Assets = Liabilities + Stockholders' Equity
Analyzing the transactions:
1. The service is provided to customer on account, which result in increase in assets and the stockholders' equity
So,
Assets = Liabilities + Stockholders' equity
+ $4,000 = $0 + +$4,000
2. The equipment is purchased by signing a note, which result in increase in liability and also increase in the assets.
So,
Assets = Liabilities + Stockholders' equity
+ $10,500 = +$10,500 + $0
3. Paid for the advertising, which result in decrease in cash as well as decrease in the equity of the company.
So,
Assets = Liabilities + Stockholders' equity
- $1,200 = $0 + -$1,200
