Answer:
$147,000
Explanation:
Data given
Capital expenditure = $25,000
Opportunity cost = $117,000
Increase in net working capital = $5,000
The computation of initial cash flow is shown below:-
Free cash flow = Capital expenditure + Opportunity cost + Increase in net working capital
= $25,000 + $117,000 + $5,000
= $147,000
Therefore for computing the free cash flow we simply applied the above formula.
Vasily pushes for an acquisition anyway. The reason for this acquisition is principal agent problem.
A conflict of interests between a person or group and the agent appointed to act on their behalf is known as the principal-agent dilemma. It is possible for an agent to do actions that are not in the principal's best interests.
The principal-agent problem is as complex as the range of principal and agent responsibilities. It can happen in any circumstance where the primary or owner of an asset transfers direct control of the asset to a third party or agent.
Agency costs are the possibility that the agent will take actions that are not in the principal's best interests. In order to align priorities and solve a principal-agent problem, the rewards system may need to be changed.
To know more about principal agent:
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This is a profit, which increases next year's budget.
500 HUNDRED IS THE AWNSER HOPE IT HELPS PLZ THANKS ME
Answer:
Answer 1---- D. none of the above
Answer 2---- B. the project will delay by one day
Explanation:
See attached image
