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3 years ago

Further explain the concept of personal finance. (3-4 sentences)

Business

1 answer:

vlabodo [156]3 years ago

3 0

Answer:

Personal finance is the area of study that covers a person's financial activity and how that affects their future. It can be thought of as a component in personal responsibility to understand one's strengths, weaknesses, value to society at large, what it means for someone to succeed or fail financially.

The goal is not necessarily money-related success. Instead, it is about creating an appropriate standard of living and ensuring the individual meets his or her desires most effectively while minimizing risk and without sacrificing freedom. Two keywords are investments (generating positive cash flow) and protection (insurance).

Explanation:

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Alpha Industries is considering a project with an initial cost of $8 million. The project will produce cash inflows of $1.49 mil

IrinaVladis [17]

Answer:

NPV = 1,003,046

Explanation:

NPV = Present value of income - investment

investment 8,000,000

1,490,000 income per year during 8 years at rate x

We need to calculate the WACC so we can know the rate

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

equity-ratio = 0.40

$\frac{E}{E+D} =0.40$

debt-equity ratio = 0.6

$\frac{D}{E+D} =0.60$

$K_e= 11.27\\0.1127 \times0.40 = 0.04508$

$K_d = 5.61 \\0.0561\times (1-.35)\times 0.6 = 0.021879$

WACC 6.69590%

Now that we achieve the rate we solve for the present value of the cash flow

$C * \frac{1-(1+r)^{-time} }{rate} = PV\\$

$1.49* \frac{1-(1.06959)^{-8} }{0.06959} = PV\\$

PV 9,003,046

And finally get the answer

NPV 9,003,046 - 8,000,000 = 1,003,046

3 0

4 years ago

Use the following data to answer QuestionAccounts payable $30,000Accounts receivable 65,000Accrued liabilities 7,000Cash 20,000I

ra1l [238]

Answer:

Current (quick) assets: $195,000

Working capital: $138,000

Explanation:

We can find the correct answer by laying out the information appropriately:

Current Assets:

Accounts Receivable: $65,000

Cash: $20,000

Inventory: $72,000

Marketable securities: $36,000

Prepaid expenses: $2,000

Total: $195,000

Current Liabilities:

Accounts payable: $30,000

Accrued liabilities: $7,000

Notes payable (short-term): $20,000

Total: $57,000

Working capital = current assets - current liabilities

Working capital = $195,000 - $57,000

= $138,000

The following accounts mentioned in the question are non-current assets: intangible assets, long-term investments, and property, plant and equipment.

And long-term liabilities, as the name implies, is classified as a non-current liability.

3 0

3 years ago

Hunter has always been great at math. He has an accounting degree and wants to work for the federal government in the Governance

Andreas93 [3]

Answer:

Explanation:

Not sure of the answer

3 0

3 years ago

Having just returned from the war in Afghanistan, David has $25,000 in his savings account. His girlfriend suggests that he talk

nexus9112 [7]

Answer:

The correct answer is FALSE.

First it's not sound investment advice to put all his savings into an investment because as the narrative rightly points out, he may have other needs.
Second, high growth stock are also

high risk
they only pay in the long term only if the company is successful because dividends are re-invested which is one of the reasons the companies grow quickly.

Although they are high risk, they also have great advantages such as:

High growth rate: this means if all goes well David will enjoy a good return on his investment;
It's also a way to protect his money from erosion by inflation

What can David do?

Subject to the advise of a professional investment professional

David needs to take into consideration his immediate needs, set aside some funds to take care of that.
Invest the balance into a mix of high growth rate stock which are high yielding but risky and low growth rate but secure investment like government bonds.
Start a small business by the side or get a job in the interim as he continues with his new life.

Cheers!

7 0

4 years ago

A promise or order is only considered negotiable if ________. it states that the promise or order is subject to or governed by a

julia-pushkina [17]

For a promise or order to be considered negotiable, it must of a necessity be an unconditional order for payment. Unlike deals where satisfaction with the goods being purchased is prerequisite for payment, for a negotiable promise or order, payment cannot depend upon any condition or contract.

5 0

4 years ago