At 15% interest compounded annually, approximately how long will it take Walter to double his money?
A) About five years
B) About three years
C) About seven years
D) About fifteen years
E) About fifty years
A
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Corporations represent the largest number of businesses in the United States
Indicate whether the statement is true or false
What is one thing an entrepreneur must do with regard to competition?
a. Simply forget the competitors and do his/her own thing b. Assume there is no competition c. Anticipate and plan for competitive response d. None of the above
What is the price you would be willing to pay today for an IOU for $500 due in one year if you want to earn at least 16%?
A) $480.00 B) $431.03 C) $450.00 D) $395.33 E) $418.23
Loretta plans to start a small business, operated through a corporation. In year 0, she expects the corporation to generate a loss of $100,000. Subsequently, she expects the corporation to be profitable, and projects profit of $150,000 in year 1, and $250,000 in year 2. Using Appendix A and a 10% discount rate, calculate the present value of expected tax savings and costs on the business earnings for the first 3 years of operations if the business does not make an S corporation election.
A. $88,250 total tax cost B. $94,350 total tax cost C. $118,800 total tax cost D. $52,910 total tax cost