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eimsori [14]
2 years ago
7

Don is thinking of borrowing $10,000 from Hancock Whitney Bank. He promises Hancock Whitney cash flows of $5,000 every year for

the next three years. If Hancock Whitney Bank's cost of capital is 10%, what is the present value of the stream of cash flows?
Business
1 answer:
Ostrovityanka [42]2 years ago
3 0

The present value of the stream of cash flows is $2,434.26.

<h3>What is the present value?</h3>

Present value is the sum of discounted cash flows. The cash flows would be discounted using the cost of capital.

Present value = C / (1 + r)^n

Where:

  • C = cash flow
  • r = cost of capital
  • n = number of years

-10,000 + [5,000 / 1.1] + [5000 / 1.1²] +  [5000 / 1.1³] = $2,434.26

To learn more about present value, please check: brainly.com/question/26537392

#SPJ1

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EA12.
BaLLatris [955]

Answer:

$38,400

Explanation:

<em>1. Cash Purchases:</em>

The total purchases in the month of March is of $35,000.

It is given that 70% of Purchases are for cash.

Hence, 70% of $35,000 would be;

$39,000 x 0.70

$27,300

<em>2. Credit Purchases: </em>

Remaining Balance of Purchases from the month of February:

For the month of February Cash Purchases can be calculated as follows;

$37,000 x 0.70

$25,900

Remaining Balance to be paid in March for the month of February can be calculated as follows;

$37,000 - $25,900

$11,100

<em>3. CASH PAYMENT for PURCHASES in MARCH:</em>

Cash Purchases = $27,300

Credit Purchases = $11,100

Hence;

<em>Cash Payment for purchases in March = Cash Purchases + Credit Purchases </em>

Cash Payment for purchases in March = $27,300 + $11,100

Cash Payment for purchases in March = $38,400

7 0
3 years ago
At Emmerson Company, one bookkeeper prepares the cash deposits while the other bookkeeper enters the collections in the journal
marusya05 [52]

Answer:

d. segregation of duties

Explanation:

Segregation of duties defines that when a different number of people doing their duties for the same purpose. For example a person receives an envelope of cheque and another person records in accounting system.

According to the given situation, one person who is bookkeeper prepared cash deposit and another person records the collection of journal and ledger. So, this indicates the segregation of duties

8 0
3 years ago
According to a study conducted by an​ organization, the proportion of americans who were afraid to fly in 2006 was 0.10. a rando
faust18 [17]

Answer:

This is not necessarily evidence that the proportion of Americans who are afraid to fly has  decreaseddecreased  because belowbelow  0.10 because the proportion of sample, is nothing very close to 0.10.

Explanation:

n = 1100

p = 0.10

Using the formula np(1-p), we will have

= 1100(0.10)*(1 - 0.10)

= 1100*0.10*0.90

= 99

99 ≥ 10

This satisfies normal distribution condition. That is, proportion of sample are normally distributed.

3 0
3 years ago
Dane works as a sales representative for the Better Butter Company. He is about to meet with his manager to review his progress
Tamiku [17]

Answer:

The answer is: B) management by objectives (MBO)

Explanation:

Management by objectives (MBO) is a strategic management model developed by Peter Drucker. Drucker's main principle stated that MBO was: to determine joint objectives and to provide feedback on the results.

According to this model, when employees participate in setting goals and action plans they will feel encouraged to participate and commit to the organization's goals. By jointly (employees + management) setting challenging but attainable objectives, employees felt empowered and motivated to fulfill those goals.

7 0
3 years ago
A 1,500 square foot office space is leased at $12.00 square foot. The space is vacant one month out of the year. Office expenses
Ymorist [56]

Answer:

$7500

Explanation:

An expense stop is a tool used by landlords to limit their operating costs and maintain predictable operating costs over the terms of the lease. Hence, even though the operating expense is $6.50, the landlord is only accountable for $6.

The operating costs annually would be: 1500 x 6 = 9000

(Even though the office space is vacant for one month of the year, maintenance costs will still be incurred throughout the year, whether leased or vacant)

Annual income :

1500 x 12 = $18000 (12 months)

It should be noted though that the office space is vacant for one month. Hence, landlord only receives 11 months worth of leased rent. Actual income : (18000/12) x 11 = $16500

Net operating income annually : Total income - Total expenses = $16500 - $9000 = $7500

3 0
3 years ago
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