Answer:
Walter's recognized gain is $2,000
Explanation:
Walter's gain/loss = cash distribution - basis in the partnership = $18,000 - $16,000 = $2,000
A partner (Walter) does not have to recognize income on a non-liquidating partnership distribution of property other than money. This land distribution must be treated as a sale and recorded at fair market value.
Answer:
IRR = 10.75%
Explanation:
The yield to maturity will be the rate at which the present value of the coupon payment and the maturity equals the market price.
C 57.50
time 24
PVc
Maturity 1,000.00
time 24.00
PVm
PV c $765.3158
PV m $284.6842
Total $1,050.0000
rate ?
The only way to solve this equation is with trial and error. Because of technological advance we can do it using excel goal seek.
we write the formula for the PV of an ordinary annuity
and the formula for a lump sum
below them we add them both together
then we define a cell for the rate
and we determinate that we want the cell which contain the sum to match 1,050 changing the rate cell
this will give us an IRR of 0.10749 = 10.75%
Answer:
No
Explanation:
Because its better u save 0.3*10=3 dollars but I value my time for $5 for that half an hour and hence its better not to go considering opportunity cost.
Answer:
C
Explanation:
Capital budgeting are the methods employed by is the process that a businesses to determine which which investments to accept, and which should be declined.
Some of the capital budgeting methods are :
1. Net present value
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
2. Internal Rate of Return
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
3. Profitability Index
profitability index = 1 + (NPV / Initial investment)
4. Accounting rate of return = Average net income / Average book value
Average book value = (cost of equipment - salvage value) / 2
5. Payback period
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
6. Discounted payback period
Discounted payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative discounted cash flows
Answer and Explanation:
Checking accounts.
Bank pays interest on savings account, certificate of deposits and checking accounts. These pay may vary but are paid by the bank to their client. Percent of interest is set by the central bank or the state bank of the country.