<span>Revenues–Expenses–Current Debt = Net Profit or Net Loss
</span>
The phrases that explain the smart Investment made by Lu Shing and her husband are:
- "smart"
- "sensible"
- "low-risk"
<h3>What is an Investment?</h3>
This refers to the buying of stocks or other property in hopes that it would appreciate in value over a period of time.
Hence, we can see that based on the smart investment made by the family of Lu Shing who both have stable jobs and bought stocks that are low-risk, the correct phrases to describe them are listed above.
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Answer:
Explanation:
Cash flow is 530 , 690 , 875 and 1090 in 1st to 4 th year respectively
discount rate = 10 %
NPV = 530/ 1.10 + 690 / (1.10)² + 875/(1.10)³ + 1090/ (1.10)⁴
= (530x1.10³ + 690 x 1.10² + 875x 1.10 + 1090)/ 1.10⁴
= (705.43 x +834.9 +962.5 +1090)1.10⁴
= 3592.83 / 1.10⁴
= 2453.95
Discount rate 18%
NPV = 530/ 1.18 + 690 / (1.18)² + 875/(1.18)³ + 1090/ (1.18)⁴
= (530x1.18³ + 690 x 1.18² + 875x 1.18 + 1090)/ 1.18⁴
= (870.80696 +960.756 +1032.5 +1090)1.18⁴
= 2039.46
Discount rate 24%
NPV = 530/ 1.24 + 690 / (1.24)² + 875/(1.24)³ + 1090/ (1.24)⁴
= (530x1.24³ + 690 x 1.24² + 875x 1.24 + 1090)/ 1.24⁴
1010.51072+ 1060.944+1085+1090 / 1.24⁴
= 1796.14
Answer:
13.33%
Explanation:
Data provided in the question:
Number of shares bought = 150
Price per share = $15.00
Dividend received = $50.00
Value of the stock at the end of the year = $2,500
Now,
Total investment = Number of shares bought × Price per share
= 150 × $15.00
= $2,250
Return on stocks
= Value of the stock at the end of the year + Dividend received - Total investment
= $2,500 + $50 - $2,250
= $300
Therefore,
Rate of return on stock = [ Return of stock ÷ Amount invested ] × 100%
= [ $300 ÷ $2,250 ] × 100%
= 13.33%