Answer:
PV(after-tax net return in 7th year) = 70.55 (Approx)
Explanation:
Given:
Number of year = 7
Pre-tax net returns (Fn) = $100
Growth rate = 4% = 0.04
Inflation = 3% = 0.03
Marginal tax rate = 30% = 0.3
Discount rate = 10% = 0.1
Computation:
Fn = Fo(1+g)ⁿ = 100(1.04)⁷
Fn = 131.6
Nominal net returns = 131.6(1.03)⁷
Nominal net returns = 161.85
After tax return = 161.85 (1 - 0.3)
After tax return = 113.30
After-tax, risk adjusted discount rate = 0.1(1-0.3) = 7%
PV(after-tax net return in 7th year) = 113.30
(1+0.07)⁻⁷
PV(after-tax net return in 7th year) = 70.55 (Approx)
A larger reduction in wacc equals impact from equity and debt. The NPV method assumes that cash flows will be reinvested at the WACC, while the IRR method assumes reinvestment at the IRR
WACC SG&A Sales CAGR EPS To make projections while capital budgeting in Excel, you have to make assumptions Although conservative assumptions are safe, they are generally so safe you would not want to make the investment.
It is best for organizations to keep their debt-to-equity ratio at a manageable level, which is generally indicated by a ratio that is below Sustaining a very low ratio would show companies that they may not be taking advantage of the cash they have for investment opportunities the project will break even.
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<span>The goal of the campaign or promotion is to build awareness and inform consumers about a company and its product offerings</span>
In order to see if there is still increase in the sale compared with the money spent of campaign , Alonzo is evaluating the effectiveness of the plan. The evaluation of effectiveness is one of the 6 steps of the promotional campaign.
The correct answer is option B.
The board of governors make decisions regarding changes in the discount rate.
<h3><u>
What is board of governors?</u></h3>
- The Federal Reserve System is governed by the Board of Governors, which is based in Washington, D.C.
- It is governed by seven individuals, known as "governors," who are appointed by the American president and approved in their roles by the American senate.
- In order to advance the objectives and carry out the duties assigned to the Federal Reserve by the Federal Reserve Act, the Board of Governors directs how the Federal Reserve System is run.
- The FOMC, the section of the Federal Reserve that determines monetary policy, includes all of the Board members.
- The periods of each member of the Board of Governors are staggered so that one term ends on January 31 of every even-numbered year. Each member is appointed to the position for a 14-year period.
When the Reserve Banks lend to depository institutions and others, as well as when they offer financial services to depository institutions and the federal government, the Board also offers general oversight, direction, and counseling.
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The Operations Section Chief directs all responses and tactical actions to achieve the incident objectives.
<h3>What is
Operations Section Chief ?</h3>
The Operations Section Chief, a member of the General Staff, is in charge of all operations directly related to the core mission. The Operations Section Chief initiates, supervises, and leads the execution of organizational elements in accordance with the Incident Action Plan.
The Operations Section Chief directs tactical incident activities to achieve incident objectives and oversees the implementation of the Incident Action Plan (IAP). 1. This role can be ordered as a stand-alone resource or as part of a National Incident Management System (NIMS) team (Incident Management Team).
The OSC1 works in the Operations functional area and reports to the Incident Commander (IC). The OSC1 performs duties corresponding with the Type 1 incident complexity and characteristics outlined in the Interagency Standards for Fire and Firefighting.
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