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2 years ago

Why should an entrepreneur do a feasibility study for starting a new venture

Business

1 answer:

nexus9112 [7]2 years ago

4 0

Answer:

Because a feasibility study assists entrepreneurs in understanding the market, the budget needed to launch a company, the liquidity factors of a business endeavor, and the return on investment in the initiative.

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Many companies secure financing from various sources with various payback periods. Not all funding sources are the same, and in

insens350 [35]

Answer and Explanation:

The classification of the funds as a short term or long term strategy as follows;

a. Line of credit = short term financing

b. Commercial paper = short term financing

c. Trade credit = short term financing

d. Bank load of 10 months = short term financing

e. Bond = long term financing

f. Stock = long term financing

g. Bank load of 20 months = long term financing

In this way, the classifications of the funds has to be done

5 0

2 years ago

Builder and Owner agree that Builder will erect a fence for Owner for $1,500. Builder claims that the fence is taking longer tha

artcher [175]

Answer:

Owner owes Builder : B. $2,000.

Explanation:

A Liability is the present obligation of the entity, that arises as a result of past events, the settlement of which is expected to result in a cash outflow from the entity.

Initially, the Owners owes the Builder $,1500

For the fence to be completed on time, an addition of $500 was owed, upon the owner accepting this arrangement.

Thus, the total obligation owing to the Builder is $2,000.

3 0

2 years ago

You need a 35-year, fixed-rate mortgage to buy a new home for $295,000. Your mortgage bank will lend you the money at an APR of

Anika [276]

Answer:

$434,780.69

Explanation:

The computation of the large the ballon payment would be is determined by using the future value formula i.e. to be shown in the attachment

Provided that

Present value = $295,000

Rate of interest = 5.9% ÷ 12 months = 0.49166%

NPER = 35 years × 12 months = 420 months

PMT = $1,350

The formula is shown below:

= -FV(Rate;NPER;PMT;-PV;type)

So, after applying the above formula, the future value is $434,780.69

8 0

3 years ago

Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218

PIT_PIT [208]

Answer:

The correct answer is option (A) $519,799.59.

Explanation:

According to the scenario, the given data are as follows:

Payment 1st year = $218,000

Payment 2nd year = $224,000

Payment 3rd year = $238,000

Rate of interest = 14.5%

So, We can calculate the amount Southern Tours willing to pay by using following formula:

We add the payment for 3 years by simple interest as:

= $\frac{payment (1st year)}{1+r^{t1} }$ + $\frac{payment (2nd year)}{1+r^{t2} }$ + $\frac{payment (3rd year)}{1+r^{t3} }$

= $\frac{218,000}{1+0.145 }$ + $\frac{224,000}{(1+0.145)^{2} }$ + $\frac{238,000}{(1+0.145)^{3} }$

= $519,799.59

Hence, the amount Southern Tours willing to pay is $519,799.59.

4 0

3 years ago

Elise enters into a contract to purchase jd's house and then changes her mind. jd sues her for breach of contract. the lawsuit f

ziro4ka [17]

<span>The lawsuit for this type of breach of contract will be governed by the common law of contracts. Contract laws relate to most agreements between people or groups, including oral agreements.</span>

4 0

3 years ago