Finance Answers

How do budgets help decision-makers decide which projects to fund? Include both internal and external funders

What do useful assumptions identify and what does that dictate? (50–80 words)

Our Finance teacher wants us to explain the meaning each of the following:
1. More value is preferred to less value
2. The sooner cash is received the more valuable it is
3. Less risky assets are more valuable than riskier assets

what is the implication of injecting foreign exchange into the economy. what will happen to money supply?

effect of increasing reserve ratio by central bank on both simple and complex multiplier

Eric provides his employee with the use of a car for 183 days during the FBT
year. During this period the car travelled 16,000 km. Eric purchased the car last
year for $50,000. The employee contributed $1,000 towards the cost of running
the car and has provided Eric with relevant documentation.
Requirement:
Calculate the taxable value of the car fringe benefit using the statutory
formula.

Your client is a parent who lent $40,000 to her son to provide a
short-term housing loan. The agreement is that the son will repay
$50,000 at the end of five years.
Reconsider this question in light of the following facts. The loan was
made to the son without any formal agreement and without any
security provided for the sum lent. In addition, the client (the
mother) has informed you that she told her son that he need not
pay interest. However, the son repaid the full amount after two
years and included in his payment an additional amount which was
equal to 5% pa on the amount borrowed. Only one cheque was
presented for the total amount.
Requirement:
Discuss the effect on the assessable income of the parent

Discuss how public choice is derived through different voting models.

Why is Fiscal Fedrelism efficient in provision of public service?

Suppose that there are only two fishermen, Zach and Jacob, who fish along a certain coast. They would each benefit if lighthouses were built along the coast where they fish. The marginal cost of building each additional light house is K100.00. The marginal benefit to Zach of each additional lighthouse is 90-Q, and the marginal benefit to Jacob is 40-Q, where Q equals the number of lighthouses.

TASK
a. Explain why we might not expect to find the efficient number of lighthouses along the coast.
b. (Showing all calculations) what is the efficient number of lighthouses? What would be the net benefits to Zach and Jacob if the efficient number were provided?