Answer: NPV = - 4433
As the NPV of the replacement project is negative,
the truck should not be replaced.
Explanation:
0 1 2 3
Savings in operating costs (5000-1000): 4000 4000 4000
Incremental depreciation:-
Depreciation on the new truck 10666 14224 4739
Depreciation on the old truck 4000 4000 4000
Incremental depreciation 6666 10224 739
Incremental NOI -2666 -6224 3261
Tax at 40% -1066 -2490 1304
Incremental NOPAT -1599 -3734 1956
Add: Incremental depreciation 6666 10224 739
Incremental OCF 5066 6490 2696
Capital expenditure:-
Cost of new truck 32000
Less: After tax salvage value of old
NOTE THAT, the book value = 4000*3 =
$12,000 (depreciation per annum is 4000
and three years life is left for the old machine)
truck = 7000 + (12000-7000) × 40% = 9000
Net initial investment 23000
Incremental terminal salvage value:-
After tax salvage value of new
truck = 15000 - (15000-2371)× 40% = 9948
Less: After tax salvage value lost on old
truck = 2000 × (1 - 40%) = 1200
Incremental net residual value 8748
After tax annual cash flows -23000 5066 6490 11444
PVIF at 10% 1 0.90909 0.82645 0.75131
PV at 10% -23000 4606 5363 8598
NPV -4433
CONCLUSION:
As the NPV of the replacement project is negative,
the truck should not be replaced.
Figure 4-5
Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for golf balls in the United States?
Question 2 options:
a decrease in the price of golf balls
an increase in the price of green fees
an expectation by buyers that their incomes will increase in the very near future
a change in consumer tastes away from golf and toward tennis
C) A belief on the part of buyers that their incomes will rise in the foreseeable future.
What causes a change in the demand curve?The ceteris paribus, or "other things being equal," assumption is one that economists frequently employ. It states that all other variables must remain constant for the analysis's purposes while analyzing the economic effects of a particular event.
Changes in tastes, population, income, the cost of substitute or complementary goods, and expectations regarding future conditions and prices are just a few of the variables that can cause the demand curve for goods and services to shift, resulting in a different quantity being demanded at any given price.
Input prices, weather conditions, technological advancements, and changes in government taxes, laws, or subsidies are a few examples of factors that might affect the supply curve for products and services, resulting in a different quantity being delivered for any given price.
Learn more about the demand curve with the help of the given link:
brainly.com/question/30550686
#SPJ1
The real exchange rate (RER) between two currencies is the product of the nominal exchange rate (the dollar cost of a euro, for example) and the ratio of prices between the two countries. The core equation is RER = eP*/P, where, in our example, e is the nominal dollar/euro exchange rate, P* is the average price of a good in the euro area, and P is the average price of the good in the United States.
Yes, that is correct. The real exchange rate (RER) is a measure of the relative price of goods and services between two countries.
It is calculated by dividing the nominal exchange rate (the price of one currency in terms of another) by the ratio of the price levels in the two countries. The RER is an important concept in international trade and finance because it affects the competitiveness of a country's exports and the cost of its imports. A high RER means that a country's goods and services are relatively expensive compared to those of other countries, which can make it harder to sell exports and can lead to a large trade deficit. A low RER, on the other hand, means that a country's goods and services are relatively cheap, which can make its exports more competitive and boost economic growth.
To learn more about real exchange rate please click on below link.
https://brainly.com/question/14208954
#SPJ4
What is your diagnosis of the situation at FAVI?
Answer:
Explanation:
FAvI is a small automotive parts manufacturer in Hallencourt, France. In addition to other products, it is the European leader in the production of key components for gearboxes (manual transmissions) in such cars as Renault, Peugeot, Citroen, Fiat, Opel, Audi, volvo, and volkswagen. Employing about 400 people, this société anonyme
What is the easiest virtual learning program? (I’m tryna change programs)
Answer:
Udacity.com
Explanation:
I love using this its so easy and assemble come try it out!
Answer:
Khan Academy.
Khan Academy provides many courses you can study in, ranging from math to technology.I hope this helped at all.
1
In addition to their criminal activities, what is another way in which street gangs MOST often pose a threat to society?
OA. making crime look glamorous on television shows
OB.
hurting bystanders during conflicts with rival gangs
O c.
causing accidents on the road with other bikers
OD. committing drug-related crimes around the world
Answer:
In addition to their criminal activities, the way in which street gangs MOST often pose a threat to society is by hurting bystanders during conflicts with rival gangs. Gang violence can result in innocent bystanders being injured or killed, causing fear and instability in affected communities. While gang-related media can glorify and romanticize gang culture, it is not the most common way in which street gangs pose a threat to society. Street gangs may also be involved in drug-related crimes and other illicit activities that can have harmful effects on individuals and communities, both locally and globally. However, direct violence towards innocent bystanders is the most pressing concern.
Click on the BACKPACK tab and make choices for the SHAPE, STRAPS, MATERIAL, FEATURES and COLOR. Notice as you make your choices, the STATS and PRODUCTION COST will change. Do not forget who your target customer is and what they VALUE. You can always click on the SEGMENTS tab for reference if you need to. When you are done with your choices, click FINISH to move onto the next phase.
Answer:
Backpack Design: Shape: Large rectangular $15
Straps: Wide Padded $8
Material: Advanced $10 Features: Water Bottle $2 and extra waterproof protector for $10 extra, gps
Color: Blue
According to the given condition of the four shapes has the highest production cost is Teardrop Rucksack. The correct option is (A).
What do you mean by production cost?All of the direct and secondary expenses companies incur when producing a good or rendering service are referred to as production costs.
Various costs, including personnel, raw materials, consumable industrial supplies, and general fees, can be included in production costs.
The total cost of raw ingredients and personnel as well as the total cost of manufacturing overhead can be added together to get the total cost of the output.
It is the design that is most complex in nature. It has to go through different process steps, having parts of different sizes. So, it has the highest production cost.
Therefore, according to the given condition of the four shapes has the highest production cost is Teardrop Rucksack.
To know more about the production cost, visit:
https://brainly.com/question/15071207
#SPJ2
This is an incomplete question the complete question is:
Okay, it's time to build a backpack that the OUTDOOR ENTHUSIAST market segment will love. The key design decisions you'll need to make include choosing the backpack's SHAPE, STRAPS, MATERIAL, FEATURES, and COLOR. First, let's focus on SHAPE. In the backpack builder panel, click through each of the four shape options.
Before you confirm the backpack shape selection, let's make sure you're reading the backpack shape information properly. Which of the four shapes has the highest PRODUCTION COST?
Teardrop RucksackRounded TopSquareLarge RectangularLiabilities are $130,000 and equity is $226,000. What are total assets?
Which reasons can be fixed by having a money plan?
Answer:
The given question relates to budgeting. In simple words, budgeting helps one to set up a saving schedule for thier finances, it means that people still have sufficient funds for the items they need and activities which are valuable to them. The expenditure or savings strategy will either keep you free of trouble or assist you get this out of debt if you're already in debt.
The unadjusted trial balance of Sheridan Exposure Inc. had these balances for the following select accounts: Supplies $4,300, Unearned Service Revenue $9,250, and Prepaid Rent $1,920. At the end of the period, a count showed $960 of supplies on hand. Services of $4,100 had been performed related to the unearned revenue account, and one month’s worth of rent, worth $40, had been consumed by sheridan exposure. Record the required adjusting entries related to these events. (List all debit entries before credit entries. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No Entry is required for the Supplies, Unearned Service Revenue, and Prepaid Rent accounts since their balances have been adjusted through the adjusting entries above.
To record the required adjusting entries related to the events mentioned, we need to consider the changes in the account balances and adjust them accordingly. Here are the adjusting entries for Sheridan Exposure Inc.:
Supplies:
Debit: Supplies Expense ($4,300 - $960) = $3,340
Credit: Supplies ($4,300 - $960) = $3,340
Explanation: The supplies on hand decreased by $960, indicating that $960 worth of supplies were used during the period. Therefore, we need to recognize the expense by debiting Supplies Expense and reduce the Supplies account balance with a credit.
Unearned Service Revenue:
Debit: Unearned Service Revenue ($9,250 - $4,100) = $5,150
Credit: Service Revenue ($9,250 - $4,100) = $5,150
Explanation: Services worth $4,100 were performed, reducing the unearned service revenue. We need to recognize the revenue by debiting the Unearned Service Revenue account and crediting the Service Revenue account.
Prepaid Rent:
Debit: Rent Expense ($40)
Credit: Prepaid Rent ($40)
Explanation: One month's worth of rent, amounting to $40, has been consumed. We need to recognize the expense by debiting Rent Expense and reduce the Prepaid Rent account balance with a credit.
For more such questions on accounts visit:
https://brainly.com/question/28326305
#SPJ8
What is google pay level? How do you define and measure its pay level?
Answer: Google pay level involves the total compensation for its employees.
Hope it helps.
Explanation:
Oki Company pays $306,200 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to
record the following costs related to the equipment.
1. Paid $25,950 cash for a new component that increased the equipment's productivity.
2. Paid $6,488 cash for minor repairs necessary to keep the equipment working well.
3. Paid $18,900 cash for significant repairs to increase the useful life of the equipment from four to seven years.
Following are the journal entries
1.Equipment A/c debited $25,950
Cash A/c credited $25,950
( new components purchased for cash)
2. Profit and loss a/c debited $6,488
Cash A/c $6,488
( cash paid for repairs)
3. Equipment A/c debited $18,900
Cash A/c credited $18,900
( repairs done to increase the life of equipment)
What are journal entries?
A journal entry is the process of recording any transaction, whether one that is economic or not. An accounting diary that displays the debit and credit balance of a corporation lists transactions.
Read more about journal entries
https://brainly.com/question/28390337
#SPJ9
10. The directors of KOKO Limited issued 100,000 ordinary shares of no-par value for GH¢10 each payable as follows: on application GH¢3 and on allotment GH¢7. All issued shares were fully subscribed and monies were paid. How much was paid on application? GH 1,000,000 B. GH 300,000 C. GH 400,000 D. GH 700,000
The correct answer is B. GH¢300,000 was paid on application for the 100,000 ordinary shares issued by KOKO Limited.
The total amount raised from the issuance of 100,000 ordinary shares is calculated by multiplying the number of shares by the issue price per share. In this case, the issue price per share is GH¢10. Therefore, the total amount raised would be 100,000 shares multiplied by GH¢10, which equals GH¢1,000,000. According to the information provided, the amount paid on application iGH¢3 per share. To determine the total amount paid on application, we multiply the amount paid per share by the total number of shares. Therefore, GH¢3 multiplied by 100,000 shares equals GH¢300,000. Therefore, the correct answer is B. GH¢300,000 was paid on application for the 100,000 ordinary shares issued by KOKO Limited.
For more question on shares
https://brainly.com/question/28452798
#SPJ8
How does the format of a memo differ from that of an e-mail? please answer asap
(high school not collage)
Memos use an indirect opening instead of a direct opening.
Memos omit a closing signature.
Memos include a subject
Answer: Memos omit a closing signature.
(I took the test and this was the answer)
Sales Mix and Break-Even Sales
Northwest Technology Inc. manufactures and sells two products, digital game players and computer tablets. The fixed costs are $589,500, and the sales mix is 30% game players and 70% computer tablets. The unit selling price and the unit variable cost for each product are as follows:
Game players: Unit selling price: $60 Unit variable cost: $50
Tablets: Unit selling price: $150 Unit variable cost: $90
How many units of each product, game players and tablets, would be sold at the break-even point?
The units of each product, game players and tablets, would be sold at the break-even point are:
Digital game players = 176,850 units
Computer tables = 412,650 units.
The break-even point is the place where all out cost and absolute income are equivalent, importance there is no misfortune or gain for your private venture.
The total cost and total revenue are equal, importance there is no misfortune or gain for your private venture. At the end of the day, you've arrived at the degree of creation at which the expenses of creation are equivalent to the incomes for an item.
Given;
Fixed costs = $589,500
Digital game players($589,500*30%) = 176,850 units
Computer tables($589,500*70%) = 412,650 units.
Learn more about break-even point:
https://brainly.com/question/22871926
#SPJ1
what are the points for?? :^)
Answer:
The brainly point allow you to ask questions
You are considering opening a new plant.
• The plant will cost $100 million upfront. After that, it is expected to
produce profits of $30 million at the end of every year. The cash
flows are expected to last forever.
1. Calculate the NPV of this investment opportunity if your cost of
capital is 8%. Should you make the investment?
2. Calculate the IRR and use it to determine the maximum deviation
allowable in the cost of capital estimate to leave the decision
unchanged.
Answer:
1. $275 million
Yes
2. 30%
Explanation:
Calculation for the NPV of the investment opportunity
NPV = –100 + 30/0.08
NPV= $275 million
Therefore the NPV will be $275 million
Yes, Based on the above Calculation they should make the investment
2. Calculation for IRR
IRR: 0 = –100 + 30/IRR
Hence,
IRR = 30/100
IRR = 30%
Therefore the IRR will be 30%
The IRR is great only in a situation where the cost of capital does not go beyond 30%.
The NPV of the investment is . The investment should be made because it is profitable.
The IRR is 30%. The maximum deviation allowable in the cost of capital estimate to leave the decision unchanged is 30%.
What is the NPV?Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV = -100 + $30 / 0.08 = $275 million.
The NPV is positive. This means the project is profitable.
What is the IRR?Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested.
IRR = -100 + 30 /1RR
100 = 30 / 1RR
IRR = 30 / 100 = 30%
To learn more about net present value, please check: https://brainly.com/question/25748668
How does finance and insurance affect in our global economy?
The ways that finance and insurance affect our global economy include:
Capital allocationRisk managementHow can finance and insurance affect the economy ?Finance plays a crucial role in allocating capital to its most productive uses. Through the provision of financial services such as banking, investment, and asset management, finance channels funds from savers to investors, supporting economic growth and development.
Insurance plays a vital role in managing risk and protecting individuals and businesses from potential losses. By spreading risk among a large pool of insured individuals or companies, insurance enables businesses to invest and take on new opportunities with greater confidence, contributing to economic growth and stability.
Find out more on finance at https://brainly.com/question/28556872
#SPJ1
118 million Which of the following would never require reporting DTAs DTLS? Subscription received in advance b. An unrealized gain from recording investments at fair value Depreciation on equipment d. Interest from investments in municipal government bonds
Answer:
DTAs and DTLs account for differences between financial and tax reporting. Interest from investments in municipal government bonds is typically tax-exempt and would not require reporting of DTAs or DTLs.
Explanation:
Deferred tax assets (DTAs) and deferred tax liabilities (DTLs) are recorded to account for differences between the financial reporting and tax reporting of a company. DTAs and DTLs should be reported when a company is expected to receive a tax benefit or have a tax obligation in the future.
Of the options provided, interest from investments in municipal government bonds would never require reporting of DTAs or DTLs. This is because interest earned from investments in municipal bonds is typically exempt from federal income tax and, in some cases, state and local taxes as well. Therefore, there would be no difference between the financial reporting and tax reporting, and no need to report any DTAs or DTLs related to this investment.
On the other hand, subscription received in advance, an unrealized gain from recording investments at fair value, and depreciation on equipment may all require reporting of DTAs or DTLs depending on the specific circumstances of the company's financial and tax reporting.
To know more about unrealized gain
https://brainly.com/question/30820592
This chapter is all about trade--imports and exports and the balance of payments.
There are six workers, one at each of the six stations (A-F). They begin their workday at 8:00 a.m. and work steadily until 4:00 pm. (They are replaced with other workers for breaks and lunches, but the production is not slowed or stopped during these times.) Their hourly wage rate is $25 per hour. You can assume unlimited demand.
What are the direct labor costs (you can ignore any start-up or empty system effects)associated with producing one razor, in dollars?
The direct labor costs is $ 1500
What is Direct Labor Costs?
Wages paid to employees directly related to producing goods or rendering customer services are referred to as direct labor costs. The overall direct labor cost exceeds wages paid by a significant amount.
Any employee directly involved in a product's manufacturing is referred to as direct labor.
Calculation for What is the process capacity in razors/hour
Based on the information given we would be using process capacity of station D Assembly 3:
Process capacity of D = 1/60*60sec * 60 mins
Process capacity of D = 1/60*3600 razors per hour
Process capacity of D = 60
Therefore, the process capacity in razors/hour will be 60.
Since, their hourly wage rate is $25 per hour. Therefore, the direct labor costs is
= 60 * 25
= $ 1500
Know more about Direct labor costs: -https://brainly.com/question/28163914
#SPJ9
A promissory note can best be described as __________., a. an interest-bearing IOU, b. a guarantee of a line of credit, c. a commitment to lend money to someone, d. a government-backed bond
A promissory note can best be described as: a. an interest-bearing IOU.
What is promissory note?Promissory note can be defined as a written note that help to shows that a person who lend a money from another person promise to payback. The note contains a promise by the borrower to pay back the lender within a stipulated period of time.
A promissory note can tend to be described as IOU which full meaning is I OWE YOU which implies that a borrower is telling the lender that he/she owe the lender some certain amount of money which the borrower will have to payback.
A promissory note also contains the terms and conditions of the agreement and this terms and agreement includes the following :
The principal amountThe loan maturity dateThe interest etcTherefore we can conclude that the correct option is A.
Learn more about promissory note here:https://brainly.com/question/27132271
#SPJ1
Where do deleted files go?
into the My Computer folder
into the My Documents folder
into the Recycle Bin
into the system tray
Answer:
the correct answer is into the recycle bin
Explanation:
Answer:
b
Explanation:
Dale is a guitar teacher and Terrence is a tile layer. If Dale teaches Terrence's daughter to play the guitar in
exchange for Terrence tiling Dale's kitchen floor,
a. only Dale is made better off by trade.
O b. both Dale and Terrence are made better off by trade.
c. neither Dale nor Terrence are made better off by trade.
O d. only Terrence is made better off by trade.
If Dale teaches Terrence's daughter to play the guitar in exchange for Terrence tiling Dale's kitchen floor Option B. both Dale and Terrence are made better off by trade.
In this scenario, Dale is a guitar teacher and Terrence is a tile layer. Dale teaches Terrence's daughter how to play the guitar in return for Terrence tiling Dale's kitchen floor. It is a classic example of trade and bartering. Dale, the guitar teacher, would have had to pay for tile installation if he hadn't bartered with Terrence, the tile layer. Terrence, on the other hand, would have had to pay for guitar lessons if he hadn't traded with Dale.
Both Dale and Terrence, therefore, benefit from the trade, and they are both better off as a result. Because Dale receives tile installation in exchange for teaching guitar lessons, and Terrence receives guitar lessons in exchange for tile installation, both benefit.
In conclusion, the answer is (b) both Dale and Terrence are made better off by trade. When both parties are better off after a trade, it is known as a mutually beneficial trade. Trade, in general, promotes mutual gains by allowing people to concentrate on what they do best and exchange their output with others for goods and services that they desire. Therefore, the correct option is B.
Know more about Trade here:
https://brainly.com/question/24431310
#SPJ8
Read the scenario.
Raoul has just been promoted to a supervisor’s position, which is a steady job. He likes to enjoy life, take vacations, and change things up every now and then. That’s why he will not have a lot of extra money to spend on repairs and maintenance on his car.
Based on this scenario, Raoul should
buy a used car.
lease a used car.
buy a new car.
lease a new car.
Answer:
lease a new car.
Explanation:
Raul is better off leasing a new car due to the following reasons.
Raul likes to change things now and then. With a lease, he can change the make and model of cars and often as he pleases.Raul does not have much money to repair and maintain his car. The best option is to lease a new car. A new car requires minimal maintenance. The cost of maintenance is not entirely up to Raul.Given that Raoul would not want to spend money on repairs and car maintenance, it is best that: he lease a new car.
What is a car lease?This is a type of financial agreement that exists where people would have to pay in order to drive a car instead of taking car loans that would have them own the car.
The lease would be beneficial because the car is new and he would not have to pay for much.
Read more on lease here: https://brainly.com/question/24460932
#SPJ2
Etxuck327 Inc. sells a particular textbook for $39. Variable expenses are $28 per book. At the current volume of 49,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:
Answer:
539,000.00
Explanation:
As per the contribution margin analysis concept, the break-even point is obtained by dividing fixed cost by contribution margin per unit.
For Etuck327,
The selling price is $39
Variable expense is $28
Break-even in units is 49,000 books.
Contribution margin per unit = selling price - variable costs
=$39- $28
=$11
if Break-even = fixed cost/ contribution margin per unit, then
49,000= fixed cost / 11
fixed costs = 11 x 49000
Fixed costs = 539,000.00
Henrich is a single taxpayer. In 2022, his taxable income is $487,500. What are his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. Note: Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable. Round your final answers to 2 decimal places. Required: All of his income is salary from his employer. Assume his modified AGI is $520,000. His $487,500 of taxable income includes $2,000 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $520,000. His $487,500 of taxable income includes $54,000 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $520,000. Henrich has $198,750 of taxable income, which includes $51,500 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $217,500.
Based on the information, the NIIT will be 665 and Income tax will be 29175.50.
How to explain the informationMAGI is adjusted gross income (AGI) plus these, if any: untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest. For many people, MAGI is identical or very close to adjusted gross income. MAGI doesn't include Supplemental Security Income (SSI).
Modified AGI = $520,000
Income Taxable at ordinary rates = $485,500
Income threshold for NIIT = $200,000
NIIT will be:
= 17500 × 3.8%
= 665
Income tax will be:
= 15213.5 + 147250 - 89075 × 24%
= 29175.50
Learn more about income on
https://brainly.com/question/30155741
#SPJ1
Which statements are true about making decisions? Select ALL that apply
A. Good decisions result in positive outcomes.
B. Decisions require making trade-offs.
C. Clear rationales are an indication that a decision is good.
D. The first step in the decision-making process is collecting information.
Answer:
D And C
Explanation:
because clear rational thinking and collecting information gives you knowledege Deal with it and you'll be fine
Bierman's, a local department store, sold a range of products. Yesterday, an order arrived for the appliance center. 300 ovens, purchased at a cost of $200 each, were distributed among 8 stores. 200 were sold for $300 each across all stores. The cost of goods sold totals
The Bierman's Cost of Goods Sold totals $40,000.
The Cost of Goods Sold is computed as the product of the number of units of the ovens sold by the unit cost price.
Data and Calculations:
Number of units bought = 300
Cost price per unit = $200
Cost of purchases = $60,000 (300 x $200)
Number of units sold = 200
Sales price per unit = $300
Cost of Goods Sold = $40,000 (200 x $200)
Thus, the cost of goods sold is $40,000.
Learn more: https://brainly.com/question/18648409
use 3 different insurance company in canada and discribe its pros and cons on
life Insurance product
Whole, universal, and variable are the three primary categories of permanent life insurance.
Which life insurance policy is the most typical?Term life insurance is the sort of life insurance that is most popular. The most straightforward and cost-effective sort of life insurance is term. It offers protection for a set amount of time, or "term." Your beneficiaries will receive a death benefit if you pass away within the policy's term.
What is the term for insurance in Canada?concerning Medicare. Canada's publicly funded healthcare system is referred to as Medicare. There are 13 provincial and territorial health insurance plans, not a single federally regulated one.
To know more about insurance visit:-
https://brainly.com/question/31219564
#SPJ1
5 poin
What do we call an interest-bearing account at a bank that pays a higher
interest rate than a regular savings account? *
Checking Account
Stocks
Money market
None of the above
PLEASEEE
Answer:
Money market account
Explanation:
Money market deposit account MMDA are high earning saving accounts offered by banks and credit unions. Financial institutions require a minimum amount to open an MMDA account. Customers are also required to maintain a specified balance in their accounts at all times. Withdrawals from money market deposit accounts are restricted.
Money market account pays a higher interest because financial institutions use the deposit from these accounts to invest in short-term money market securities. Examples of Money market securities include commercial papers, certificates of deposits, and treasury bills. They often offer high returns. The interest rates offered on MMDA is influenced by the interest earned on the money market securities.