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melomori [17]
2 years ago
13

The formula for finding the net present value of a cash outflow now, a positive cash flow in 1 year, a positive cash flow in 2 y

ears, and a positive cash flow in 3 years is:_________
Business
1 answer:
melamori03 [73]2 years ago
7 0

The formula for finding the net present value is -C0 + [C1 / (1 + r)] + [C1 / (1 + r)²] + [C1 / (1 + r)³].

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

The net present value is a capital budgeting method. Net present value is the present value of after-tax cash flows from an investment less the amount invested.

Only projects with a positive net present value should be accepted. A project with a negative net present value should not be chosen because it isn't profitable. When choosing between positive  net present value projects, choose the project with the highest  net present value first because it is the most profitable.

An advantage of the net present value method of capital budgeting is that it considers the times value of money. A disadvantage of net present value is that it is difficult to estimate the accurate discount rate.

To learn more about net present value, please check: brainly.com/question/25748668

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Abc buys widgets for $5 cash and sells them on account for $8. At the point of sale, what is the effect on the cash flow of abc?
s2008m [1.1K]

At the point of sale, there is an increase in the effect on the cash flow of abc.

What is cash flow?

A cash flow is a real or virtual movement of money.

  • A cash flow in its narrow sense is a payment (in a currency), especially from one central bank account to another; the term 'cash flow' is mostly used to describe payments that are expected to happen in the future, are thus uncertain and therefore need to be forecast with cash flows.
  • A cash flow is determined by its time t, nominal amount N, currency CCY and account A; symbolically CF = CF(t,N,CCY,A).
  • It is however popular to use cash flow in a less specified sense describing (symbolic) payments into or out of a business, project, or financial product.
  • Cash flows are narrowly interconnected with the concepts of value, interest rate and liquidity. A cash flow that shall happen on a future day t(N) can be transformed into a cash flow of the same value in t(0).

To learn more about cash flow: brainly.com/question/10714011

#SPJ4

6 0
2 years ago
Ted dies with assets consisting only of long-term investments. He leaves $5,000,000 to his children and the remainder to his wif
WITCHER [35]

Answer:

B) $9,500, 000

Explanation:

The tax basis for Ted's estate is $9,500,000, ans since it falls under the current federal estate tax exemption($11,400,000), his wife and children do not have to pay any estate taxes.  If Ted's family sells the assets before the six month alternate valuation is effective, then their tax basis will be the same as Ted's estate ($9,500,000).

3 0
4 years ago
A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly
Harman [31]

C. Product line extension.

7 0
3 years ago
Four types of visual aids<br>​
lord [1]

Answer:

FOUR types of visual aids are, but not limited to, physical samples, models, handouts, pictures, videos.

3 0
3 years ago
Suppose Aiyanna's pizzeria currently faces a linear demand curve and is charging a very high price per pizza and doing very litt
snow_tiger [21]

Answer:

The correct answer is option A.

Explanation:

Price elasticity of demand measures the change in the quantity demanded due to a change in the price of the commodity. In order to increase the demand for pizza, Aiyanna decides to lower the price of pizza by 5% per week.  

With passage to time, the demand for a commodity becomes more and more elastic. This is because, with time, the consumers are able to get adjusted to price change.  So each successive week demand will become more price elastic.

7 0
3 years ago
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