You can make a promise and really mean it, but later not deliver it - you would still be honest.
You can be confident in your promise and still not deliver it.
But if you really delivered what you promised, you would be reliable - the correct answer is c)
Answer:
$3,716.37
Explanation:
Initial investment $70,000 (cost of the equipment)
Depreciation expense per year = (cost- salvage value) / useful life = ($70,000 - $0) / 5 years = $14,000
net cash flows per year (the same for every year):
[(revenues - operating expenses - depreciation expense) x (1 - tax rate)] + depreciation expense = [($30,000 - $11,000 - $14,000) x (1 - 30%)] + $14,000 = $3,500 + $14,000 = $17,500
year NCF
0 -$70,000
1 $17,500
2 $17,500
3 $17,500
4 $17,500
5 $17,500
6% discount rate
using a financial calculator, the NPV = -$70,000 + $73,716.37 = $3,716.37
$73,716.37 is the present value of the 5 future cash flows
A.
Doesn't have to be adults it can be someone their age or younger
Answer:
0
Explanation:
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
accounting profit = revenue - explicit cost
Explicit cost includes the amount expended in running the business.
100,000 - (25,000 + 40,000 + 25,000) = 10,000
economic profit = 10,000 - 10,000 = 0
Answer:
C. Cash flow from operating activities has decreased relative to net income.
Explanation:
As we know that
Operating activities involves those activities that impact the after-net income working capital. This will subtract the rise in current assets and a reduction in current liabilities, while adding the decline in existing assets and a rise in current liabilities.
It will adjust some adjustments in working capital. In addition, the depreciation expenses are applied to the net profit and the loss on the selling of assets is added, while the gain on the sale of assets is deducted
Hence, the C option is correct
