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Alexus [3.1K]
2 years ago
5

Less certain a cash flow, the ________ the risk, and ________ the present value of the cash flow. higher; lower lower; lower hig

her; higher lower; higher
Business
2 answers:
Akimi4 [234]2 years ago
7 0
I think it’s higher the risk and the lower present value
pychu [463]2 years ago
4 0

Answer: A. Higher; lower

Explanation: Less certain a cash​ flow, the​ ________ the​ risk, and​ ________ the present value of the cash flow.

A.

​higher; lower

B.

​higher; higher

C.

​lower; higher

D.

​lower; lower

The current value of a sum of money or streams of cash flow in the future are usually discounted. Safer assets do have lower discounted rates than riskier assets. Which is to say, when a cash flow has higher risks, it is discounted more making its value today lower. Future cash flows are discounted (at the discount rate), and the higher it is discounted, the lower the present value of the future cash flows.

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A company is considering two capital investments. Each requires an initial investment of $15,000 and has a 4 year useful life. I
yaroslaw [1]

Answer:

3 years

Explanation:

The computation of the payback period is shown below:

Payback period = Initial investment ÷ Net cash flow

where,  

Initial investment is $15,000

And, the net cash flow would be

= Year 1 + year 2 + year 3 + year 4

= $5,000 + $5,000 + $5,000 + $5,000

= $20,000

As we see that the net cash flow is recovered in three years that means net cash flows and the initial investment are equal

So,

Payback period would be

= $15,000 ÷ $15,000

= 3 years

7 0
2 years ago
How can producers maximize their profit?
Alina [70]

Answer:

the best possible answer is keep the marginal costs below marginal revenue.

7 0
3 years ago
The effectiveness of an advertising campaign can be measured a. only after the campaign has been carried out completely and resu
shepuryov [24]

Answer:

before, during, and after the campaign through the use of pretests, inquires and posttests.

Explanation:

Advertising campaigns can be defined as the advertisement of a product that focuses mainly on communicating a similar type of message to the potential customers. This can be achieved through different mediums inorder to create an awareness about the product.

Measurement of an effective advertising campaign is very necessary, it is used to determine how well a product will sell in the market.

The effectiveness of an advertising campaign can be evaluated by utilizing pretests, inquires and posttests to determine if the potential customers have seen the advertisement and how well they are responding to it.

3 0
3 years ago
You are holding a stock that has a beta of 1.39 and is currently in equilibrium. The required return on the stock is 20.47%, and
r-ruslan [8.4K]

Answer: 26.73%

Explanation:

You can calculate the expected return using the Capital Asset Pricing Model (CAPM).

Formula is:

Expected return = Risk free rate + beta * (Market return - risk free rate)

Use the previous figures to solve for the risk free rate:

20.47% = Rf + 1.39 * (16.50% - Rf)

20.47% = Rf + 22.935% - 1.39R

20.47% - 22.935% = Rf - 1.39Rf

-2.465% = -0.39Rf

Rf = -2.465% / -0.39

= 6.32%

New expected return is:

= 6.32% + 1.39 * (21% - 6.32%)

= 26.73%

7 0
3 years ago
A nation's legal system is usually of very little interest to international business managers, because international businesses
olganol [36]

The answer is True

The four fundamental systems of civil law, common law, statutory law, and religious law—or mixtures of these—are typically the foundations of the present national legal systems. However, because each nation's legal system is molded by its distinct past, it contains distinctive variances. Comparative law is the name of the field of study that examines law just at level of legal systems.

Both civil law (also known as Roman law) and legal system systems can be regarded as the most prevalent in the globe. Civil law is the most prevalent in terms of both landmass and population, while common law is used by the most people of any single civil law system.

To know more about fundamental refer to brainly.com/question/2224584

#SPJ4

7 0
1 year ago
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