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2 years ago

What is the difference between earned income, passive income, and investment income?

Business

1 answer:

Rudiy272 years ago

4 0

Explanation:

Earned income consists of income you earn while you are working a full-time job or running a business.

Passive income is income earned from rents, royalties, and stakes in limited partnerships.

Portfolio income is income from dividends, interest, and capital gains from stock sales.

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BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to

suter [353]

Answer:

a) For MACHINE A

Net Present Value (NPV) 7208

Internal Rate of Return (IRR) 11,48%

For MACHINE B

Net Present Value (NPV) -13468

Internal Rate of Return (IRR) 6,99%

b)BAK Corp should buy MACHINE A

Explanation:

We use excel or a spreadsheet to calculate net present value and the profitability index of each machine. See document attached.

We use a cash flow to solve this problem.

At moment 0 we have the investment cost , in this case Original cost $76,700 $183,000 for Machine A and Machine B . From period 1 to period 8, we have inflows and outflow. (Estimated annual cash inflows $20,200 $40,500

Estimated annual cash outflows $5,040 $9,870).

Then, we calculate the Net cash flow that is the difference between benefits and cost.

We use all the result (positive and negative) in Net cash flow to get the profitability index, IRR.

Download xlsx

8 0

3 years ago

A decision strategy is a sequence of decisions and chance outcomes, where the decisions chosen depend on the yet to be determine

jasenka [17]

Answer:

false is the correct answer

6 0

2 years ago

In 2010 the United States posted a current account deficit of -$471 billion. The bulk of the negative value came from: A. a good

Brut [27]

Answer:

A. a goods trade deficit

Explanation:

The current account represent the trade balance (export less import) plus

the net income (person receiving interest, rent or wages from aboard less person and companies paying foreingers) and

the direct payment. ( remittances from wroker to US)

As the US is one of the most open-economies in the world the mayority of this deficit comes from import of good and services from aboard.

Another factor, is that US company invest around the world thus, the net income should be positive.

And becuase the US economy is strong as opposite of Mexico or other Latin America countries, the average US employee abroard will not send their wages to support his family.

Thus, we should ensure the deficit comes from a negative trade deficit.

6 0

3 years ago

Downward influence is best achieved through

jonny [76]

Answer:

C- an inspiring vision

Explanation:

Downward influence is the ability to influence employees lower than you. This is best achieved through an inspiring vision. By articulating a clear vision, you help people see the end goal and move toward it. You often don’t need to specify exactly what needs to be done to get there—people will be able to figure it out on their own. An inspiring vision builds buy-in and gets people moving in the same direction.

7 0

3 years ago

If a student fails to recognize how to properly quote the words of an author, that student may be found guilty of

Sholpan [36]

If a student fails to recognize how to properly quote the words of an author, that student may be found guilty of <span> unintentional plagiarism</span>

8 0

3 years ago

Read 2 more answers