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gayaneshka [121]
3 years ago
13

Irene has made Sara an offer on the purchase of a capital asset. Irene will pay (1) $200,000 cash or (2) $50,000 cash and a 6% i

nstallment note for $150,000 guaranteed by City Bank of New York. If Sara sells for $200,000 cash, she will invest the after-tax proceeds in certificates of deposit yielding 6% interest. Sara’s cost of the asset is $25,000. Why would Sara prefer the installment sale?
Business
1 answer:
AlexFokin [52]3 years ago
5 0

Answer:

Irene would prefer the instalment sale because she can defer the payment of tax until a future date. On the other hand, if she accept the cash sale, she would have to pay the tax immediately. The amount invested in certificate of deposit would be after tax.

Thus the value of an instalment payment would be greater than the value of a cash payment

Explanation:

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Which of the following is true about foreign direct investment (FDI)?
Nastasia [14]

Answer:

D.

Explanation:

<em>Let's analize what is FDI. And why D is the correct answer.</em>

Foreign direct investment (FDI) is is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. So it involves ownership of foreign assets.

Now why A B and C are false.

C. Greenfield venture is a form of FDI.

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3 0
4 years ago
Using the following balance sheet and income statement data, what is the debt to assets ratio?
GaryK [48]

Answer:

Debt to Asset Ratio 0.3331 or 33.31%

Explanation:

Debt to Asset Ratio = Total Debt / Total Assets

Debt to Asset Ratio = Total Liabilities  / Total Assets

Debt to Asset Ratio = 43,300 / 130,000

Debt to Asset Ratio = 0.3331 = 33.31%

d.Total liabilities 43300 Total assets 130000 is used to calculate Debt to total asset ratio.

* I am not sure that in the question given the a, b,c,d and e

1. are the option to choose

or

2. this is all the data to calculate debt to total asset equity.

In cash Condition 1.

Answer is " d.Total liabilities 43300 Total assets 130000 "

In cash Condition 2.

Answer is " 0.3331 or 33.31% "

8 0
3 years ago
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Vera_Pavlovna [14]
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