At the End of 2005,Phil Had a Net Worth of $10,000.During

question 42

Multiple Choice

At the end of 2005,Phil had a net worth of $10,000.During 2008,he plans to save $2,000 and he also expects the market value of his assets to increase by 5%.If Phil's total liabilities were $4,000 at December 31,2007,his December 31,2008 net worth will be

• A)$12,000.
• B)$12,500.
• C)$12,700.
• D)$12,800.

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Definitions:

Net Cash Inflows

The amount of cash that a business receives over a period, minus the amount of cash outflows.

Inventory Cost

Inventory cost includes the costs associated with purchasing, storing, and managing goods that a business intends to sell; it typically comprises the purchase price, warehousing costs, and any other expenses related to holding inventory.

NPV Rule

The principle that an investment is considered acceptable if its net present value (NPV) is positive, under the context of discounted cash flow analysis.

Decision-Maker

An individual or group responsible for making choices that will impact themselves or others, often involving allocation of resources or resolutions in the face of challenges.