Answer:
NPV= $13160
Explanation:
To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
The formula is:
n
<h3>NPV= -Io + ∑[Rt/(1+i)^t</h3>
t-1
where:
R t =Net cash inflow-outflows during a single period t
i=Discount rate of return that could be earned in alternative investments
t=Number of timer periods
In this exercise:
0= -13000
1= 6000
2= 6000
3=6000
4=6000
5=6000 + 3000 + 2500= 11500
NPV= -13000 + (6000/1.10^1) + (6000/1.10^2) + ... + (115000/1.10^5)
NPV= $13160
THE CORRECT IS ANSWER IS WITHOUT A DOUBT b - Extinguished
Answer: Have the highest rates of return for a given level of risk.
Explanation:
Efficient Portfolios offer the highest rates of return for a given level of risk or the lowest risk for a given return. This means that they always maximise returns for a given level of risk which makes them very attractive to the point that they are labeled 'The Optimal Portfolio'.
It is argued at at this level, including any other Investment vehicle or rather diversifying the portfolio further cannot be done unless more risk is accepted. This is the point where the portfolio can get no less riskier for the return it offers.
Noncontrolling interests are entitled to preference in dividends and payouts in liquidation is not a correct statement about noncontrolling interest.
Option B
<u>Explanation:
</u>
Non-controlling interest (NCI) is the part of the equity in a corporation not directly related to a parental company that has a controlling interest (above 50% but below 100%) and strengthens the financial results of the corporation with its own.
Suppose, for example, that Alpha acquires 80 percent of Sierra's outstanding stock. As Alpha controls over 50% of the Sierra region, Alpha consolidates the financial performance of Sierra that has its own financial results.
Alpha's balance sheet reports as NCI 20 percent of the Sierra equity which Alpha does not own. In proportion to their amounts of holding, the Incorporated Net Income is assigned to parental and non-controlling interest parties (minority shareholders); 80% to Alpha and, in this situation, 20% to un-controlling interest.
