The difference between the current value of all cash inflows and all cash withdrawals is the project's net present value. The investment project is acceptable if the net present value is positive. The investment proposal is undesirable if the net present value is negative.
How can NPV assist in making investment decisions?The present value of the net cash inflows that a project is anticipated to produce less the project's initial capital need is the project's net present value (NPV). The net present value criterion will be used by the business when making decisions to determine whether to proceed with a project, such an acquisition. The project's net present value is the difference between the current values of all cash inflows and cash outflows. If the net present value is positive, the investment proposal is acceptable. If the net present value is negative, the investment idea is not suitable.To learn more about the Net present value method, refer to the following link:
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describe your management experience , including a time you effectively resolved a difficult situation from a management capacity
Answer:
I managed workers of seven in the associate degree info Services department whose responsibilities enclosed delivering specifications and software package to internal purchasers. My role was that of PM or Project Manager, and my responsibilities enclosed one. guaranteeing every staffer was alert to their specific duties, 2. maintained the relevant timelines and ensured every team-member's deliverables arrived on time, 3. arranged, coordinated, and crystal rectifier conferences to debate current and approaching come, and 4. maintained knowledgeable and cozy social atmosphere for my workers.
One of the tougher problems I Janus-faced was after we employed a very bright developer whose my leader had W2'd in from the Asian nation. though he was very precocious in development of the cultural variations between his land and our mostly-female dev team quickly became telling. Sensing the growing hostility in my work cluster, and distinctive the problem, I quietly organized for the W2 worker to attend a cultural sensitivity coaching seminar (couching it as a necessary attend for all employees), and taking aside the pained parties and asking in a well-mannered way to figure with Maine on desegregation him. In the end, he came to a lot of embarrassed, apologized, and our team ran like mechanism thenceforth
Land is the only asset that is not subject to annual depreciation. O True O False
The given statement is False. While land is an asset that is not subject to annual depreciation, it is not the only asset with this characteristic.
There are other assets, such as certain types of art, collectibles, or assets with an indefinite useful life, that may also be exempt from annual depreciation. However, it is important to note that the majority of tangible assets, such as buildings, machinery, and equipment, are subject to annual depreciation as their value is expected to diminish over time due to wear and tear or technological obsolescence. Depreciation is a systematic allocation of an asset's cost over its useful life, and it serves to reflect the decline in value accurately on the financial statements.In conclusion, the statement "Land is the only asset that is not subject to annual depreciation" is false.
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Oriole Company began the year with retained earnings of $310000. During the year, the company issued $415000 of common stock, recorded expenses of $1155000, and paid dividends of $79600. If Oriole's ending retained earnings was $330000, what was the company’s revenue for the year?
The company's revenue for the year was $1,284,600 as per the information provided.
Oriole Company began the year with retained earnings of $310000, issued $415000 of common stock, recorded expenses of $1155000, and paid dividends of $79600, and ending retained earnings were $330000.
Retained earnings is the accumulation of a company's net income and loss, capital contributions, and dividend payouts from the beginning of the company's life till now. In order to find the revenue of the Oriole Company, we need to use the following accounting formula:
Net Income = Revenues – Expenses
We already know that the company's expenses were $1155000 and the dividends paid were $79600.
Therefore, we can calculate the net income of the company as follows:
Net Income = Beginning Retained Earnings + Revenues - Expenses - Dividends
Ending Retained Earnings = Beginning Retained Earnings + Net Income - Dividends
$330000 = $310000 + Net Income - $79600
$330000 - $310000 + $79600 = Net Income
Net Income = $129600
Therefore, the revenue for the year can be calculated as follows:
Net Income = Revenues – Expenses
$129600 = Revenues - $1155000
Revenues = $1155000 + $129600
Revenues = $1284600
Hence, the company's revenue for the year was $1,284,600.
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what is the difference between GAAP and IFRS?
Answer:
GAAP is rules-based and IFRS is principles-based.
What are the steps (in sequence) involved in the consumer decision making process? Briefly explain how the retailer can develop strategies during each step so that the customer favors the retailer
Answer:
Problem recognition: Recognizes the need for a service or product
Information search: Gathers information
Alternatives evaluation: Weighs choices against comparable alternatives
Purchase decision: Makes actual purchase
Post-purchase evaluation: Reflects on the purchase they made
Explanation:
there are 5 steps in the consumer decision making process.
if this economy is presently producing 12 units of good b and 0 units of good a the opportunity cost of increasing production of good a from 0 units to 1 unit is the loss of
If the economy is now producing 15 units of buttery and Zero units of guns, increasing the production of guns form 0 to 3 units would cost 3 units in opportunity costs.
What kinds of opportunity costs are there?Its opportunity cost is the combination of the money that could be spent in other ways and the time spent studying. There's an opportunity cost connected with not growing wheat or using the resources in that other way when a farmer decides to do so (land and farm equipment).
What does opportunity cost mean in a nutshell?The benefits that are given up by choosing 1 action option over another are referred to as opportunity costs in economics. In essence, it is the value of the untaken road. While ignoring opportunity costs is straightforward, understanding missed chances
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A plot below the lower control limit on the range chart:(I) should be ignored since lower variation is desirable.(II) may be an indication that process variation has decreased.(III) should be investigated for assignable cause.A. I and IIB. I and IIIC. II and IIID. II onlyE. I, II, and IIIC. II and III
The right response is choice (c).
(II) could indicate a decline in process variation.
Investigation for a reason should be conducted on (III).
What sets apart a cause that can be assigned?The following Western Electric principles can be used to recognize signals with assignable cause variation. A value that is one point higher above the upper or lower control limits. a sequence of six or seven rising or dropping points in a row. a recurring pattern or cycle.
Definition of "process variation"Process variation, which occurs naturally during the production of integrated circuits, is the variation in the properties of transistors (length, widths, oxide thickness).
Any production and measuring process will exhibit variation. When we collect sample data on a process's output, such as critical dimensions, oxide thickness, or resistivity, for example, we can observe that all the numbers are NOT the same.
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when a public company decides to pay a portion of its profits to stockholders this is called a.____
When a public company decides to pay a portion of its profits to stockholders, it is called a dividend. A dividend is a payment made by a company to its shareholders from its earnings or reserves. A company's board of directors decides on the payment of dividends. When a company generates profits, it can either keep the money to reinvest it into the business or distribute it among its shareholders.
The amount of dividend paid depends on the company's earnings, the dividend policy, and the number of shares held by the shareholders. Dividends can be paid in cash or in additional shares of the company's stock. The dividend payment is usually announced after the company's annual general meeting (AGM), and shareholders receive payment soon after that.
Dividends are one way that companies reward their shareholders for their investment in the company. Dividends are usually paid out on a regular basis, such as quarterly or annually. Dividends are also a way to signal a company's financial health to its investors. If a company is paying dividends, it indicates that the company is generating profits and has enough cash flow to pay dividends to its shareholders.
In conclusion, when a public company decides to pay a portion of its profits to stockholders, it is called a dividend. A dividend is a payment made by a company to its shareholders from its earnings or reserves. The amount of dividend paid depends on the company's earnings, the dividend policy, and the number of shares held by the shareholders.
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What does indigenous technology mean?
Answer: I hope this is helpful mark brainlist if right then no if wrong
Explanation:
Indigenous technology is used by the native inhabitants of a country or region and it constitutes an important part of its cultural heritage. Characteristically, indigenous technologies: Are recognized as animate, imbued with the breath of life and they live in form and function.Technologies employed by the native inhabitants of a country and which constitute an important part of its cultural heritage and should therefore be protected against exploitation by industrialized countries; the problem of indigenous knowledge has been discussed during the Rio Conference but it does not receive much ...Types of indigenous technology in India are; (i) Generic Drugs. (ii) Thorium based Nuclear Reactors. (iii) Plastic RoadsIndigenous Technology is created within a sensory environment that builds on our sense of relationship, meaning, balance, feeling, memory and place as well as sight, sound, smell, taste and touchIndigenization is the process by which Indigenous ways of knowing, being, doing and relating are incorporated into educational, organizational, cultural and social structures of the institution.One example of Indigenous Technologies in action today can be witnessed in differential approaches to medicine. Medical technologies in the Western Scientific sense of the term might conjure images of biomedical research labs, electromagnetic monitors or imaging systems such as CT or MRI scans.Indigenous technology is used by the native inhabitants of a country or region and it constitutes an important part of its cultural heritage. Characteristically, indigenous technologies: Are recognized as animate, imbued with the breath of life and they live in form and function.
Investment bankers Group of answer choices act as intermediaries between issuers of stocks and investors and act as advisors to companies in helping them analyze their financial needs and find buyers for newly-issued securities. accept deposits from savers and lend them out to companies. act as intermediaries between issuers of stocks and investors. act as advisors to companies in helping them analyze their financial needs and find buyers for newly-issued securities.
Answer:
act as intermediaries between issuers of stocks and investors and act as advisors to companies in helping them analyze their financial needs and find buyers for newly-issued securities. act as intermediaries between issuers of stocks and investors. act as advisors to companies in helping them analyze their financial needs and find buyers for newly-issued securities.
Explanation:
__________ is an advanced procedure where products are created one layer at a time. it is also known as additive manufacturing.
Answer: 3D printing
3D printing is an advanced procedure where products are created one layer at a time. it is also known as additive manufacturing.
Making products by combining materials is referred to as "additive manufacturing." As a result, additive manufacturing is the process of making an object by adding material rather than removing it.
What manufacturing process is 3D printing?A real object is produced using the additive manufacturing technique of three-dimensional (3D) printing from a digital design. In order for the process to operate, thin layers of material—such as liquid or powdered plastic, metal, or cement—must first be laid down. Next, the layers must be fused together.
The practice of adding material to an object is known as additive manufacturing. In this way, additive manufacturing includes 3D printing. When an object is created by adding material rather than by eliminating it, this process is known as additive manufacturing.
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select all that apply which of these statements related to the capital asset pricing theory (capm) is (are) correct? select all that apply. multiple select question. the capm is derived from modern portfolio theory. capm returns incorporate behavioral finance into efficient frontier returns. the key difference between capm returns and efficient frontier returns is the inclusion of a risk-free rate. capm provides higher expected returns than those found on the efficient frontier.
The correct statements related to the capital asset pricing theory (CAPM) are The CAPM is derived from modern portfolio theory and The key difference between CAPM returns and efficient frontier returns is the inclusion of a risk-free rate.
1. The CAPM is a model that was developed as an extension of the modern portfolio theory. While the modern portfolio theory provides a framework for constructing efficient portfolios, the CAPM focuses on the relationship between expected return and systematic risk.
2. The efficient frontier is a curve that represents the set of portfolios that offer the highest expected return for a given level of risk. CAPM returns incorporate the risk-free rate, which is the minimum return an investor can expect without taking any risk. This is important because it helps to adjust for the time value of money and enables investors to compare the expected return of a risky asset to the risk-free rate.
3. Behavioral finance is not incorporated into the CAPM returns or the efficient frontier returns. The CAPM assumes that investors are rational and make decisions based on expected returns and risk. Behavioral finance, on the other hand, studies how emotional biases and cognitive errors influence financial decisions.
4. CAPM does not provide higher expected returns than those found on the efficient frontier. The expected returns of an asset or portfolio are determined by its systematic risk or beta, which is a measure of the asset's sensitivity to market movements. The CAPM helps to determine the expected return based on the asset's beta and the risk-free rate.
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1. A parent company sells land to its wholly-owned subsidiary in 2015, reporting a gain of $35,000. In 2020, the subsidiary sells the land to an outside developer and reports a gain of $60,000. In the 2020 consolidation working paper, the elimination of this transaction will result in: A. A $35,000 decrease in beginning retained earnings B. A $60,000 increase in investment in subsidiary C. A $95,000 decrease in land D. A $35,000 increase in gain on sale of land
Answer:
Explanation:
A $60,000 increase in investment in subsidiary
Consider the following three scenarios:I. ABC Lawncare performed lawn maintenance services for Drake Inc. on June 1st, and received payment of $500 for those services.II. On June 1st, Melly Corp received payment for 100 pounds of raw material to be delivered to Drake Inc. in 6 months.III. Lodo, LLC collected cash on June 1st for services rendered on May 1st.Given these scenarios, revenue cannot be recognized on June 1st for:
Answer:
Scenario IIScenario IIIExplanation:
The Accrual basis is used in Accounting which means that when it comes to revenue, it can only be recognized in the period that it is earned.
Scenario II cannot be recognized on June 1st because it is for goods to be delivered in 6 months. As the goods have not been delivered, the revenue has not be earned so will not be recognized.
Scenario III cannot be recognized on June 1st as well because it was for work done in May which means that it was earned in May. It is to be recognized as revenue earned in May, not in June.
The rate of interest on money held in a savings account, _______ the amount of money saved.
a.
decreases
c.
has no effect
b.
increases
d.
none of the above
Please select the best answer from the choices provided
A
B
C
D
Permanent book-tax differences include ______.
a. $10,000 capital gain from the sale of land held by a business
b. $10,000 of prepaid rental income received on the last day of the tax year
c. $100,000 of organization costs for a new business
d. $50,000 of interest expense associated with the generation of tax-exempt income
Luz is getting married this autumn. She has a £110000 mortgage on a fixed interest
rate with 24 years left. She has £15000 savings invested in a cash ISA, which earns
2. 0% interest. However, she has been advised that the interest rate on the ISA will
be reduced to 1. 25% next month and will be 0. 5% lower than interest paid on her
mortgage borrowing. Luz’s friend has suggested that now the ISA interest rate is reducing Luz should use
her savings to pay £10 000 off her mortgage borrowing, which the terms of her
mortgage allow
It would be best for Luz to consult with a financial advisor who can assess her specific situation, including the exact interest rates, her long-term financial goals, and the impact of paying off the mortgage early on her overall financial situation.
Analyzing the situation based on the given information.
Luz has a £110,000 mortgage with a fixed interest rate and 24 years remaining. We don't know the exact interest rate on her mortgage, but we do know that the interest rate on her cash ISA is currently 2.0%. However, it will be reduced to 1.25% next month.Luz also has £15,000 in savings invested in her cash ISA. Her friend has suggested using £10,000 from her savings to pay off her mortgage, as her mortgage terms allow it.To determine whether it's a good idea for Luz to use her savings to pay off a portion of her mortgage, we need to consider a few factors.
Comparing the Interest Rates:
If the interest rate on the mortgage is higher than the current and future interest rates on the ISA, it may be beneficial to pay off the mortgage.If the interest rate on the mortgage is lower than the current and future interest rates on the ISA, it may be more beneficial to keep the savings in the ISA.Evaluating Long-Term Savings:
Consider the long-term impact of using the savings to pay off the mortgage.
Determine whether the savings invested in the ISA will yield higher returns over time compared to the potential interest savings by paying off the mortgage early.
Without knowing the exact interest rate on the mortgage, we cannot provide a definitive answer. However, you can use the information provided to make an informed decision.If the interest rate on the mortgage is significantly higher than the current and future ISA interest rates, it might be advantageous for Luz to use a portion of her savings to pay off the mortgage. This would reduce her overall interest payments over the remaining term of the mortgage.On the other hand, if the mortgage interest rate is relatively low compared to the ISA interest rates, it might be more beneficial for Luz to keep her savings invested in the ISA. This would allow her to continue earning interest at a higher rate than what she would save by paying off the mortgage early.Learn more about Interest Rates here:
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According to the video, what are the goals of window displays? check all that apply.
to catch the eye
to learn about the customers
to make merchandise look irresistible
o to make salespeople feel glamorous
Answer:
a and c
Explanation:
Answer:
its a and c
Explanation:
i got it right
What MUST you have in order to
complete a federal, state, or local tax
return form?
Answer:
federal
Explanation:
Which of the following is a challenge for a business that wants to begin exporting?
A) increasing company profits.
B) identifying a target market.
C) improper use of a trademark
D) Generate tax dollars for another country.
Discuss 15 ways of using the theory of comparative advantage of solving the economic crisis in Ghana
Encouraging businesses to specialize in goods and services where they have a comparative advantage, leads to increased efficiency and competitiveness. Identifying the sectors in which Ghana has a comparative advantage and focusing on developing these industries through investment and infrastructure development.
Promoting exports of goods and services that Ghana has a comparative advantage in, to increase foreign exchange earnings. Encouraging foreign investment in sectors where Ghana has a comparative advantage.
Improving the education and skill levels of the workforce to increase their comparative advantage in the global market. Promoting entrepreneurship in sectors where Ghana has a comparative advantage.
Encouraging research and development to increase innovation and comparative advantage. Strengthening the legal and regulatory framework to attract foreign investment and promote business growth.
Improving the efficiency and productivity of businesses to increase their comparative advantage. Diversifying the economy to reduce dependence on a single sector and increase comparative advantage in multiple sectors. Improving transportation and communication infrastructure to increase the competitiveness of businesses. Encouraging the development of small and medium enterprises to increase competitiveness and comparative advantage.
Promoting collaboration and partnerships between businesses to increase their comparative advantage. Encouraging the development of new technologies to increase efficiency and comparative advantage. Fostering a business-friendly environment to increase investment, competitiveness, and comparative advantage.
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Which of the following strategies is used in the following ad:
A. famous association
B. join the bandwagon
C. promotional deal
D. repetition
Answer:
a
Explanation:
if you earn 7% per year on your bank account, how long will it take an account with $115 to double to $230? (do not round intermediate calculations. round your answer to 2 decimal places.)
Answer:
10.24
Explanation:
The formular for compound interest is:
FV = PV (1 + r/n)^nt
PV (Present value) = $115
FV (future value) = $230
r (rate) = 7%
n (# of compound) = 1
t (time) = ?
Apply this to the formula above:
230 = 115 (1 + 0.07/1)^t
230/115 = 1.07^t
2 = 1.07^t
ln(2) = t * ln(1.07)
ln(2)/ln(1.07) = t
10.24 = t
It will take approximately 10.29 years for an account with $115 to double to $230 at a 7% annual interest rate.
To determine how long it will take for an account with $115 to double to $230 at a 7% annual interest rate, you can use the Rule of 72.
Here's a step-by-step explanation:
1. The Rule of 72 formula is: Time (in years) = 72 / Interest Rate
2. Convert the interest rate to a whole number by multiplying it by 100: 7% * 100 = 7
3. Plug the interest rate into the formula: Time = 72 / 7
4. Calculate the result: Time ≈ 10.29 years
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What do law enforcement public safety corrections and security agencies usually provide to help their employees manage stress Please help !!!! Need answer fast !!
Answer:
The following have been discovered to be of help in reducing stress for law enforcement and public safety officials such as the Police and Military.
Attaining and maintaining work-life balancedeliberately taking out time for leisure activitiesKeeping a very positive mindset alwayssetting and pursuing after goals and avoiding procrastinationPlanning their daily work for enhanced effectivenessExplanation:
Stress amongst law enforcement officials and public safety officials has become very crucial due to the following reasons:
1. It's easy for stress to go on for a prolonged period of time in the lives of these officials because of the nature of their work.
2. They are always in the face of danger and have to take life-or-death decisions/risks very often.
3. Relative inconclusive nature of their work
4. Frequent changes in shifts
5. Financial challenges and
6. In some cases health challenges of the officers in question or loved ones.
Stress amongst Law enforcement officials are very difficult to track because as they are trained to be and look tough...hence a the thinking is that a demonstration of weakness or admission of challenges could be interpreted as incompetence or inability to continue on the job.
Cheers!
Answer:
1600
April 1635: Boston set up a night watch
1700
April 29,1786: The first law enforcement to be killed while on his duty ( Sherriff branch)
September 24, 1789: They established the first-ever law enforcement assigned by george washington himself only thirteen though.
1800
1835:Texas creates the oldest statewide law enforcement
1857: The first department to have pistols in Baltimore
1858:They established the rule that they must be in uniform
April 14, 1865: They established secret services
November 2, 1870: Thomas J. Smith became one of the several chiefs to die on duty
October 26, 1881: The most famous wild west gun fight.
May 6, 1886: 8 Chicago police officers were wounded
December 15, 1890: Six police officers were killed trying to arrest the sixious Indian leaders.
December 16, 1891: The known female to be in law enforcement.
1893: The first national police group was made.
1895: Roosevelt started his police commissioner for three years
1900
1902: Fingerprints were used by law enforcement in the U.S.A
1906:The first law enforcement lady died in duty
1909: although almost 100 officers died on duty these officers sacrificed their lives 96 out of the 100
1914:The first police department to use automobiles
October 3, 1929: the largest amount of officers to die in one incident in colorado being 8 officers
1930: The deadliest year (killed officers 312)
January 2, 1932: Six officers were killed during the young brother massacre trying to get the suspects
1932-1934: a gang killed ten law enforcement officers being the most outlawed
November 22,1963: was shot and died after assassins killed J.F. K
September 1968: First women to patrol their streets
April 6,1970: 2 highly armed gunmen killed 4 patrol officers in just 4 minutes which stared the whole training area for police officers
September 1971: 7 officers where murdered during a massive riot/protest
1974: established softer armor to protect any officer between handgun assult
September 20,1974:The first african american lady killed on duty
October 19 1984: Reagan established as a law for memorial services and day
October 15 1991:Memorialized the officers who fought and passed their lives on duty
September 13 1994: Established the flag should be waved in honor of the officers on May 15th memorial day but only half staff.
April 19 1995:A truck exploded getting rid of an Oklahoma federal building, killing 8 officers and 160 people in just the blast.
2000
November 9 2000: NLEOFM was made
September 11 2001: 72 officers were killed
2002:Homeland security started protecting the usa
October 11 2018: a museum at the Motorola foundational building was supposed to be dedicated in washington.
From the occurring events that have happened throughout the past. These events progressively began building the police system. Because of the actions made, we have created laws to provide safety and security. With everyone who died on duty, we have created memorials and even holidays. With the September 11th attack we brought necessary emergency evacuation and memorial services for the 72 officers who passed on duty. Throughout the police system, we have moved to civil acts and let different colored people participate in the police system. To allow women to act in police systems and we have organized sheriffs, chiefs, and patrol officers.
Explanation:
Select the correct answer.
If the present value of an investment is $5,000, what will be its future value in three years if you apply a compound interest of 5 percent to it?
A.
$5,770
B.
$5,778
C.
$5,877
D.
$5,788
Answer:
D) 5,788
Explanation:
Hope this helps:)
Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).
It can be seen from the solutions given that Cain's net income is $24,000.
Here is the solution:Net income = Net cash provided by operating activities - Adjustments
= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000
= $24,000
Therefore, Cain's net income is $24,000.
Here is a breakdown of the adjustments:
To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.
A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.
The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.
A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.
A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.
A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.
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Pick an object in your house. Now come up with a new, innovative use for the object. You're going to come up with a marketing plan for your new product. Your plan must include the following parts: Identify your target market. Outline your strategy with specific steps you'll take.
Answer:
apple
Explanation: People will enjoy the apple, I will make commercials of people eating them so they get hungry.
Answer:
Youve heard of a water bottle well to be enviromentally friendly i came up with a new invention a ring dish out of a water botle youve seen the bracelets and jewlery but you havent seen a ring dish or a phone case they are enviromentally safe, scratch resistant, they are cute.
Explanation:
just a little idea i came up with\
Portionpac co-founder, marvin klein, says ethics and integrity are "common sense." klein's moral values and attitudes, which still guide the company today, relate to which set of factors in the ethical decision-making process?
The correct answer to this open question is the following.
Although the question does not provide any options, we can say that the set of factors in the ethical decision-making process are individual, collective, and social.
Ethics and integrity should be "common sense." Moral values and attitudes are so important as key behaviors by the members of the organization. If employees are not guided by these concepts, the risk is that they could deviate from the guidelines and performance expected by the management.
The leader of the company and top management are the ones who have to set the example in order for the workers to follow those steps. The leader has to set an example of the conduct expected in the organization.
a bond pays no intrest. it has a $1000 par value and mature in 5 yeaers. what is its value if market rises 10%
The value of the bond if the market rises 10% is approximately $620.9.
To determine the value of this bond, we need to first understand that since it pays no interest, it is essentially a zero-coupon bond.
In such a case, the bond's value is determined by discounting its par value to the present value using the prevailing market interest rate.
Let's calculate the bond's value step-by-step:
1. Determine the market interest rate: The market has risen by 10%,
so we will assume the market interest rate has also increased by 10%.
2. Calculate the present value factor: Use the formula PV Factor
= 1 / (1 + market interest rate) ^ years to maturity. In this case, PV Factor = 1 / (1 + 0.10) ^ 5.
3. Calculate the present value of the bond: Multiply the par value by the present value factor. In this case, Present Value = $1,000 * PV Factor.
Following these steps:
1. Market interest rate = 10% = 0.10
2. PV Factor = 1 / (1 + 0.10) ^ 5 = 1 / (1.10 ^ 5) ≈ 0.6209
3. Present Value = $1,000 * 0.6209 ≈ $620.9
So, the value of the bond if the market rises 10% is approximately $620.9.
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Jocasta owns an apartment complex that she purchased 6 years ago for $750,000. Jocasta has made $50,000 of capital improvements on the complex, and depreciation claimed on the building to date is $128,700
Answer:
$671,300
Explanation:
Calculation to determine Jocasta's adjusted basis in the building.
Adjusted basis =[$750,000-($128,700 - $50,000)]
Adjusted basis=$750,000- $78,700
Adjusted basis = $671,300
Therefore Jocasta's adjusted basis in the building will be $671,300