Calculate net discretionary cash flow

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Reference no: EM131956606

1. Which of the following is the formula to calculate Net Discretionary Cash Flow (NDCF)?

a. Income - Savings = NDCF.

b. Income + Savings - Expenses = NDCF.

c. Income - Savings - Expenses - Taxes = NDCF.

d. Income + Savings - Expenses - Taxes = NDCF.

2. Megan purchased a new vehicle for $40,000. She put $5,000 down and financed the $35,000 balance over 5 years. What is the impact of this transaction on her net worth?

a. Her net worth increases.

b. Her net worth decreases.

c. Her net worth remains the same.

d. None of the above.

Reference no: EM131956606

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