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1 year ago

The process of determining the present value of future cash flows in order to know their worth today is referred to as:______.

1 answer:

3 0

Calculating the present value of a cash flow or series of cash flows that will be received in the future is the process of discounting.

A value obtained in the future is converted to an equivalent value received right away through the process of discounting. Discounting determines this relative value, so a dollar received in 50 years may be worth less than a dollar received today. Using the aforementioned method, the discounting process assists an investor in estimating the investment's value in current dollars at the investor's desired rate of return. Due to the opportunity cost of spending money now and the desire to enjoy advantages now rather than in the future, discounting makes current costs and benefits more valuable than those that will occur in the future. A discount factor in financial modeling is a decimal number multiplied by a cash flow value to reduce it to its present value. As the effect of compounding the discount rate accumulates over time, the factor grows (i.e., the decimal value shrinks).

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Assume you are planning a spring break ski trip to Colorado. You are preparing a budget of your costs. You are staying at a lodg

Oksi-84 [34.3K]

Answer:

The answer is A.

Explanation:

The example given in the question represents a variable cost. Variable cost can be defined as a cost that changes according to the level of output that is produced. In this case, according to the times the ski lift is used during the week. If the ski lift is used 40 times, than each will be $2, if it is used 20 times, each will be $4. So the correct answer is option A.

I hope this answer helps.

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2 years ago

If the nominal exchange rate (expressed as foreign currency per unit of the domestic currency) rises 5%, domestic inflation is 2

Murrr4er [49]

Answer:

3.333% which is approximately 3%.

Explanation:

Real Exchange rate is the price of foreign goods compared to the price of domestic goods. This can be calculated using the following formula:

R = NER × (DPL ÷ FPL) ............................................... (1)

Where:

R = Real Exchange Rate

NER = Norminal Exchange Rate

DPL = Domestic Price Level

FPL = Foreign Price Level

When there is a change in the real exchange rate, equation (1) will expressed is follows:

ΔR = ΔNER × (ΔDPL ÷ ΔFPL) ............................................... (2)

Where:

ΔR = Change in Real Exchange Rate

ΔNER = Change in Norminal Exchange Rate = 5%

ΔDPL = Change in Domestic Price Level = Domestic Inflation = 2%

ΔFPL = Change in Foreign Price Level = Foreign Inflation = 3%

If we substitute all these values into equation (2), we can solve for ΔR as follows:

ΔR = 5% × (2% ÷ 3%)

= 5% × 0.6667

ΔR = 3.333%

Therefore, change in the real exchange rate is 3.333% which is approximately 3%.

4 0

3 years ago

Wayne Rogers Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from

kiruha [24]

Answer:

Kindly check attached picture

Explanation:

Given the following :

2013 2014 2015

Cash receipts from sales:

On 2013 sales 293,430 166,990 39,820

On 2014 sales 361,040 94,750

On 2015 sales 409,660

Cash payments for expenses:

On 2013 expenses 191,910 68,8703 4,880

On 2014 expenses 45,320 a176,560 55,130

On 2015 expenses 47,250 b222,210

Kindly check attached picture for detailed explanation

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3 years ago

________ is the framework that managers apply to determine the competitive moves and business approaches that run the company

tiny-mole [99]

Strategy is the framework that managers apply to determine the competitive moves and business approaches that run the company.

A strategic framework is an aspirational blueprint that provides the interplay and brotherly love between a business enterprise's enterprise approach and its different auxiliary packages to its various stakeholders.

the six crucial factors of strategic making plans: vision, assignment, goals, method, approach, and tactics.

There are four components to a strategic framework:

enterprise objective.

approach.

dimension.

target.

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3 0

1 year ago

Using the principles and strategies of saving and investing, create a saving and investing plan. Remember, a saving and investin

vodomira [7]

1. Make a financial plan. 2. Pay off any high interest debts. 3. Start saving and investing as soon as you’ve paid off your debts.

7 0

3 years ago