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3 years ago

Why do some entrepreneurs move onto different projects once they have generated sufficient money?

Business

1 answer:

Nady [450]3 years ago

5 0

Answer:

to reinvest again since they have met their goals

Explanation:

Although there are other reasons investors may use exit strategy, however, it is often used by entrepreneurs when they determine they have made enough profit for which the business or project was started in the first place.

By moving onto another business project, entrepreneurs most likely intend to rebuild again a different project to the same level their past project did.

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Fred Landers and his brother are interested in purchasing a house priced at $310,000. They plan to put 30% down and finance the

elena-s [515]

Answer:

the answer is 94165

Explanation:

first let's find the amount of the down payment. It is 30% of the total.

310000 x 0.30 = 9,000

now we just need to add on all the additional costs.

93000 + 100 + 250 +190 + 275 +70 + 280 = 94165

5 0

3 years ago

"Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company’s discount rate is

Lena [83]

Answer:

The NPV of the investment is: $34,114

Explanation:

We need to calculate the present value of each year net cash flows during the investment lifetime of 4 years.

Y0 - Present value = -Cost of equipment - Investment in working capital = -145,000 - 63,000 = -$208,000

Y1 - Net cash flows = Sales revenue - Variable cost - Fixed operating cost = 280,000 - 135,000 - 73,000 = $72,000 => Present value of Y1 = 72,000/1.15 = $62,609

Y2 - Net cash flows = Sales revenue - Variable cost - Fixed operating cost -Overhaul of the equipment = 280,000 - 135,000 - 73,000 - 9,500 = $62,500 => Present value of Y2 - 62,500/ 1,15^2 = $47,259

Y3 - Net cash flows = Sales revenue - Variable cost - Fixed operating cost = 280,000 - 135,000 - 73,000 = $72,000 => Present value of Y3 = 72,000/1.15^3 = $47,341

Y4 - Net cash flows = Sales revenue - Variable cost - Fixed operating cost + Salvage recovery + Working capital realized = 280,000 - 135,000 - 73,000 + 13,500 + 63,000 = $148,500 => Present value of Y4 = 148,500/1.15^4 = $84,905

=> Net present value of the investment = -$208,000 + $62,609 + $47,259 + $47,341 + $84,905 = $34,114

3 0

3 years ago

A company's trial balance included the following account balances: Accounts payable $19,287 Accounts receivable 81,416 Cash 73,4

bija089 [108]

Answer:

Total Assets on the Balance Sheet is $241,236.

Explanation:

Total Assets would include the total from the Non Current Assets Section and the total from the Current Assets Section of the Balance sheet.

Here is an extract of the Assets Section of the Balance Sheet :

Assets

Non-Current Assets

Equipment $54,928

Total Non-Current Assets $54,928

Current Assets

Inventories $25,896

Supplies $5,592

Accounts receivable $81,416

Cash $73,404

Total Current Assets $186,308

Total Assets $241,236

6 0

3 years ago

What is a purpose of having a conceptual framework?

Alenkinab [10]

Answer:

A) To enable the profession to more quickly solve emerging practical problems and to provide a foundation from which to build more useful standards.

Explanation:

A conceptual framework refers to a system of ideas and objectives that generate a consistent set of rules and standards. All CPAs work following accounting standards, e.g. US GAAP or IFRS. Without a conceptual framework, it would have been impossible to develop standard norms that apply to every accounting professional and that are used and required by all the companies, the markets and government regulators.

8 0

3 years ago

A decrease in input costs to firms in a market will result in a(n) _________________

shtirl [24]

Answer:

a) decrease in equilibrium price and an increase in equilibrium quantity.

Explanation:

As the input cost decreases for the companies the the supply of the goods increases hence the supply curve shifts rightwards.In the curve at the new equilibrium point the equilibrium price decreases and the equilibrium quantity increases.

Think it like if cost of creating anything is decreased for a company then the company will create more products .So there will be more products in the market.So to clear the products in the market the price will be reduced and the quantity of the product is more than before.

6 0

3 years ago