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2 years ago

Assume that subway tokens are $1.50 today and the price will go up to $2.00 tomorrow. how many tokens would you buy?

Business

1 answer:

Ivan2 years ago

7 0

The number of tokens to be purchased will depend on the purchasing power of my present capital.

<h3>What is a subway tokens?</h3>

It means those metal or plastic disk that can be redeemed, used in designated slot machines which are mostly used to pay for entry to the subway system.

Despite that the effect of inflation could push the subway tokens which are $1.50 today to go up to $2.00, the number of tokens to be purchased will depend on the purchasing power of my present capital.

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Henrie’s Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost

Nikitich [7]

Answer:

1. IRR = 14%

2. NPV = 3.239

3. 12%

Explanation:

The IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested in a project.

NPV is the present value of after tax cash flows from an investment less the amount invested

NPV and IRR can be calculated using a financial calculator

Cash flow in year zero = -137,320

Cash flow each year from year 1 to zero = 40,000

I = 14%

IRR = 14%

NPV = 3.239

If cash in flow each year from year 1 ro 5 was $38,090, the IRR = 12%

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

4 0

4 years ago

J has a life policy with the Guaranteed Insurability rider. J has just celebrated their 42nd birthday and realizes that she want

posledela

Answer:

C. The insurer will deny J's request to add more insurance.

Explanation:

The Guaranteed Insurability Rider means extra policy which is an addition to insurance rider policy and allows the purchaser of the policy to purchase extra life insurance on the life of the insured at prearranged periods of time.

Usually, this ability to purchase extra life insurance ends at the age of 40 and since the J has just celebrated the 42nd birthday, therefore he will not be eligible to buy more death benefit.

Based on the above discussion, the answer shall be C. The insurer will deny J's request to add more insurance.

8 0

4 years ago

Cost of merchandise sold to customers $ 223,000

barxatty [35]

213

bc i said so and i think

Explanation:

7 0

3 years ago

Explain how the working capital accounts (receivables, inventory, payables) are forecasted. Q2 Expain how EBIT is forecasted. Ye

stich3 [128]

Answer:

Q1. Working capital accounts : inventory is forecasted using previous years data, trends, how much goods will be purchased, produced, sold, planned promotions , production cycles and ratios related to inventory.

Accounts Receivables are forecasted using how much products will be sold on credit, debtors collection patterns to determine balances at the end of the year and ratios relating to accounts receivables.

Accounts payable are forecasted using creditors payment patterns, how much goods will be purchased on credit.

Q2 EBIT is forecasted by forecasting the revenues and Expenses.

Q3 interest expense is forecasted using projected debt multiple by projected interest rate, and also taking into account projected repayments and additions of debt.

Q4 PPE is forecasted adding projected additions and subtracting disposals then get the projected balance at the end of the year.

Q5 long term debt if projected by forecasting any debt needed and any repayments of debt

Q6 Stockholder's equity is forecasted by using the forecasted retained earnings from profits and by forecasting any capital raises or repurchase of company shares. Or can be forecasted by taking the forecasted assets subtracting forecasted liabilities.

Q7 EFN comes from the need to grow and financing that growth. EFN stands for External Financing Needed and is the difference between the growth (Asset section) and the funds in retained earnings( equity and liability section)

EFN is first forecasted and the forecast means the business has space for growth or not.

Explanation:

7 0

3 years ago

The Perez Company has the opportunity to invest in one of two mutually exclusive machines that will produce a product it will ne

barxatty [35]

Answer:

Machine A = $ 1.22 million

Machine B = $ 0.70 million

Explanation:

The Equivalent Annual Annuity of the machines is as follows

Machine A = $ 1.22 million

Machine B = $ 0.70 million

Thus the Machine A with a higher Equivalent Annual Annuity of $ 1.22 Million is the better machine.

If the company accepted the better machine which is Machine A, the value of the company increases by $ 3.57 Million (Which is the net total of discounted cash Inflows = Net Present value of Machine A)

See attached file for details.

6 0

3 years ago