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AVprozaik
2 months ago
15

Robert wants to get serious about saving for a new car. Which account would you recommend? Why?

Business
1 answer:
soldi70 [3.6K]2 months ago
3 0

Answer:

Robert is eager to save diligently for a vehicle. What type of account would you advise him to utilize, and why?

  • Since his aim is to save over time and obtain a better interest rate, a certificate of deposit (CD) would likely be the most advantageous option. CDs typically offer greater returns than regular savings accounts.

Cindy, who has worked for eight years, has amassed a substantial emergency reserve of $45,000, covering six months of her income. She is looking to earn additional interest rather than letting her savings stagnate in a traditional savings account. What account do you suggest for her, and why?

  • Money market accounts tend to generate higher interest rates compared to standard savings accounts and are best suited for those with a sizable account balance. Given that Cindy has already saved $45,000, it's the right moment for her to switch to a money market account.

Janelle prefers to maintain separate accounts for her savings goals, including one dedicated to purchasing college textbooks every semester. She typically spends about $550 on books biannually and saves this amount through automatic deposits from her paychecks, which occur twice a month. She is curious if her online savings account, which yields 0.75%, remains her best option for these textbook savings. What would you recommend and why?​

  • Janelle has likely selected the optimal choice already. Honestly, there aren't many other feasible options considering her $550 savings every six months. She's achieving a reasonable interest rate for a savings account, and even if she looked into alternatives that offer slightly better rates (like 1%), the difference would be negligible.

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Which 4 statements are true about the Chart of Accounts, how to make changes to the Chart of Accounts, and how products and serv
marusya05 [3725]

Answer:

The response is "Option A, C, D, E, and F".

Explanation:

Here are the accurate statements:

  • To access the Profile window for account management, select Connect Account and press Fresh to display the accounts table, where you can enable or add an account.
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6 0
2 months ago
Integrative—Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed widget grinder to
arsen [3447]
a. Determine the initial investment tied to replacing the current grinder with the new one. Initial investment = cost of the new grinder + installation costs of the new grinder - after-tax revenue from selling the old grinder + increase in net working capital. Cost of the new grinder = $105,000. Cost to install the new grinder = $5,000. After-tax revenue from the old grinder = $70,000 - ($70,000 - {$60,000 x (1 - 52%)] x 40%} = $70,000 - $16,480 = $53,520. Increase in net working capital = $40,000 + $30,000 - $58,000 = $12,000. Thus, initial investment = $105,000 + $5,000 - $53,520 + $12,000 = $68,480. b. Assess the incremental operating cash inflows related to the new grinder installation. (Remember to factor in depreciation in year 6.) New grinder cash flows: Year 1 = [($43,000 - $22,000) x (1 - 40%)] + $22,000 = $34,600. Year 2 = [($43,000 - $35,200) x (1 - 40%)] + $35,200 = $39,880. Year 3 = [($43,000 - $21,120) x (1 - 40%)] + $21,120 = $34,248. Year 4 = [($43,000 - $12,672) x (1 - 40%)] + $12,672 = $30,868.80. Year 5 = [($43,000 - $12,672) x (1 - 40%)] + $12,672 + $18,000 (NWC) + $19,934.40 (after-tax salvage value) = $68,803.20. Old grinder cash flows: Year 1 = [($26,000 - $11,520) x (1 - 40%)] + $11,520 = $20,208. Year 2 = [($24,000 - $6,912) x (1 - 40%)] + $6,912 = $15,964.80. Year 3 = [($22,000 - $6,912) x (1 - 40%)] + $6,912 = $15,964.80. Year 4 = [($20,000 - $3,456) x (1 - 40%)] + $3,456 = $13,382.40. Year 5 = $18,000 x (1 - 40%) = $10,800. Incremental cash flows: Year 1 = $34,600 - $20,208 = $14,392. Year 2 = $39,880 - $15,964.80 = $23,915.20. Year 3 = $34,248 - $15,964.80 = $18,283.20. Year 4 = $30,868.80 - $13,382.40 = $17,486.40. Year 5 = $68,803.20 - $10,800 = $58,003.20. c. Determine the expected terminal cash flow at the end of year 5 from the grinder replacement. Terminal cash flow = regaining net working capital + after-tax salvage value = $18,000 + $19,934.40 = $37,934.40. d. Show a timeline displaying the relevant cash flows for the proposed grinder replacement decision. Year 0 = -$68,480. Year 1 = $34,600. Year 2 = $39,880. Year 3 = $34,248. Year 4 = $30,868.80. Year 5 = $68,803.20.
5 0
1 month ago
Why is using cash unhelpful when a person wants to apply for a loan in the near future?
stepan [3596]
Using cash is counterproductive and disadvantageous because relying solely on it leads to a lack of credit history, making it difficult for banks to assess your reliability for loan repayment.

7 0
2 months ago
A customer, who needs to drive to work in a Wisconsin winter, has a critical need to use the product Ice Melt. For him as a cons
stepan [3596]

Answer:

The urgency or possibility of postponement results in an inelastic demand for ice melt by customers.

Explanation:

Demand elasticity indicates how much the demand for a product changes in response to a price shift. The formula is % change in demand / % change in price

Factors that influence the price elasticity of demand include the type of product, income level, availability of substitutes, time frame, urgency or potential for delay, and proportion of total spending.

Inelastic demand occurs when changes in demand are less proportional relative to price changes. % change in demand < % change in price

Case 'Customer urgently requires ice melt to commute to work': This situation reflects inelastic demand, meaning demand does not significantly change with price alterations (he will purchase it even at a higher cost). This is due to the pressing nature of the demand and limited possibilities for postponing it.

5 0
24 days ago
Areas that once had vast economic growth and large amounts of industry, but are now suffering from the effects of outsourcing ar
harina [3808]

Answer:

de-industrialization

Explanation:

Deindustrialization signifies a period in social and economic history characterized by a reduction or complete removal of the industrial sector within a specific area or nation, especially concerning manufacturing or mining sectors. It is essentially the reverse process of industrialization.

This phenomenon typically occurs when industrial activities are no longer deemed economically viable. It marks a stage where industrial growth diminishes or vanishes in a certain locale, often as a result of significant social or economic changes.

7 0
1 month ago
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