Answer:
e. $3,892,587.08
Explanation:
The value of Nabor Industries entire company using the free cash flows can be determined by calculating the present value of all free cash flows that will be occurred in the future in the following manner:
Present value of 2004 free cash flow $176,991.15
200,000(1+13%)^-1
Present value of 2005 free cash flow $234,944
300,000(1+13%)^-2
Present value of 2006 free cash flow $277,220.06
400,000(1+13%)^-3
Present value of cash flows after 2006 $3,203,431.86
((400,000(1+4%))/(13%-4%))*(1+13%)^-3
Value of Nabor Corporation $3,892,587.07
So based on the above calculations, our answer is e. $3,892,587.08
Answer: a. Economic factors
Explanation:
Company orientation refers to training that is given to new employees to better prepare them to work in the company and be as efficient as possible.
It includes things like occupational health and safety so that the employee may know how best to behave so as not to cause accident or get injured by one. It also includes telling the employees of the various fringe benefits that might accrue to them.
It would not include economic factors as these as not specific to the company.
Answer:
each firm simultaneously increased output above the Nash equilibrium level.
Explanation:
A French mathematician, Antoine Augustine Cournot developed the Cournot duopoly in his economic model “Researches into the mathematical principles of the theory of wealth”, of 1838.
Cournot duopoly also known as the Cournot competition, is an economic model where two (2) business firms having identical cost functions compete in a oligopolistic market of imperfect competition with homogeneous products.
Under the Cournot duopoly, the competing firms offer identical products and thus, choose an amount or quantity to produce independently and at the same time because they cannot collude.
Both firms in a Cournot duopoly would enjoy lower profits if each firm simultaneously increased output above the Nash equilibrium level.
Hence, the advantage of the Cournot duopoly is that, it inhibits competing firms from deviating unilaterally.
Answer:
The Annual payment to be made is $445,327
Explanation:
The computation of the annual payment is shown below;
As we know that
The Present value of assets = Annual payment to be made × Present value annuity factor (i%,n)
$2,400,000 = Annual payment to be made × Present value annuity factor (7%,7)
$2,400,000 = Annual payment to be made × 5.3893
So,
The Annual payment to be made is $445,327
