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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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Tiptoe shoes, had annual revenues of $185,000, expenses of $103,700, and paid dividends of $18,000 during the current year. The

Natalka [10]

Calculation of ending retained earnings balance after closing:

The balance in ending retained earnings after closing can be calculated as follows:

Balance in retained earnings account before closing $297,000

Add: Revenues $185,000

Less: Expenses $103,700

Less: Dividends $18,000

Ending retained earnings balance after closing = $360,300

Hence, The balance in ending retained earnings after closing is $360,300

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2 years ago

Read 2 more answers

If some one makes a deal to not work for 2 years and will pay you 100 billion dollars or should you choose a different man who s

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You would choose the last one. In two months, you make more money thank you would in those two years for the first man.

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2 years ago

If a gain of $5,278 is realized in selling (for cash) office equipment having a book value of $50,852, find the total amount rep

Alina [70]

Answer:

B) $56,130

Explanation:

The cash flow statement shows how the company's operating, investing and financing activities affect the flow of cash by generation or use.

The investing activities section is where the purchase of fixed assets and the amount received for the disposal of these assets are accounted for.

Given that a gain was realized and the book value of the asset was given, the amount received for the disposal

= $5,278 + $50,852

= $56,130

This is the amount that will be reported in the investing activities section of the statement of cash flows as an inflow.

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3 years ago

Scale is not as important as style when decorating a room A. True B. False

Paul [167]

Answer:

Explanation:

once a style is chosen all pieces should be in the designated style

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2 years ago

A private university is made up of various "schools," such as the School of Journalism, the School of Business, the School of La

Oxana [17]

Answer:

The correct answer is D

Explanation:

SBU stands for Strategic business unit , it is a profit center whose focus is on the product offering and the market segment. It is usually have a marketing plan which is discrete, marketing campaign and analysis of competition, though it is a part of larger business entity.

So, the private university facing financial problems, they decided to become a profit center. Therefore, this scheme is parallel to SBU which is Strategic business unit.

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3 years ago