Answer:
Proposal A
3.75 years
Proposal B
3.375 years
Explanation:
<u>Proposal A</u>
Payback = 3.75 years
Year Cash Inflow Initial Investment Balance Year Count
0 0 1,050,000
1 $280,000 770,000 1
2 $280,000 490,000 2
3 $280,000 210,000 3
4 $280,000 0 *3.75
* 1050,0000 / 280,000 = 3.75 years
<u>Proposal B</u>
Payback = 3.375 years
Year Cash Inflow Initial Investment Balance Year Count
0 0 1,050,000
1 $350,000 700,000 1
2 $3150,000 385,000 2
3 $280,000 105,000 3
4 $280,000 0 *3.375
* ( 3 + ( 105,000 / 280,000 ) ) = 3.75 years
Answer:
A suitable advantage of magazine advertisement is option C.
Explanation:
The magazine may be meant only for men or only for women or for both. Thus a suitable magazine maybe selected to make an appeal to a particular section of the community.
By using magazines as a medium for advertising, an appeal can be made to a large body of persons with similar tastes or covering a large area.
In the 21st century, promoting in print or in computerized magazines may appear to be silly. TV arrives at millions additional customers. Publicizing on your site costs not exactly on television. Furthermore, aren't magazines collapsing left and right?
In actuality, the magazine business, even in printed copy, is progressing nicely. New magazines are continually showing up, and various them succeed and flourish. Purchasing promotion space may not be modest, however it tends to be compelling.
Slender Focal point of Interests
Satellite television has some specialty stations, however magazines take practicing to the following level. Promoting in a magazine that takes into account a specialty crowd of devotees or experts focuses on that crowd absolutely.
Stogie Enthusiast provides food solely to stogie smoking perusers. Author's Review perusers are keen on whatever helps their composing professions. Crossties is the authoritative manual for the railroad crosstie industry. In the event that a magazine serves your fantasy segment, it could be a match made in heaven.
It is because he is paying money so it is a expense
Explanation:
1. Buy insurance: Though insurance is an expenses, it safe guards you and yours business from huge loss.
2. Income from multiple sources: Always do not depend on single income. Make sure that income comes from multiple sources so that you can make your business alive.
3. Have a savings: Entrepreneurs should save money as how much as they can. We cannot know when there will be a profit and when there is a loss. We can only forecast to a particular extent.
4. Limits on Loan: Keep your loans manageable: Do not step into huge loans where it will be difficult for you to manage when there is a sudden lose.
Answer:
Garrett Co. cash flows from operating activities is $61,000.
Explanation:
Garrett Co.
Statement of cash flows (extract)
Net income $56,000
Add Loss on disposal of equipment 5,000
Cash flows from operating activities $61,000
Loss on disposal of the equipment was calculated as Proceeds - net book value, that is $15,000 - $20,000.
Note that purchase of equipment belongs to investing part of the cash flows while proceed from stock issuance and dividend payment belong to financing part of the cash flows
