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hichkok12 [17]
3 years ago
10

A lump sum of $5,000 is invested at 10% per year for five years. The company's cost of capital is 8%. Which is true? The investm

ent has a future value of $7,347 The investment has a future value of $8,053 The investment has a present value of $5,000 The investment has a net present value of $5,000 None of the above
Business
1 answer:
irga5000 [103]3 years ago
3 0

Answer:

The correct answer is B: The investment has a future value of $8,053

Explanation:

Giving the following information:

A lump sum of $5,000 is invested at 10% per year for five years. The company's cost of capital is 8%.

We need to calculate the final value of the investment. We will use the following formula:

FV= PV*(1+i)^n

FV= 5,000*1.10^5= $8,052.55

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Answer:

c. The "apparent," but not necessarily the "true," financial position of a company whose sales are seasonal can change dramatically during a given year, depending on the time of year when the financial statements are constructed.

Explanation:

Financial statements are used to show the financial activity of a business within a given period.

One of the principles of a accounting is periodicity. This requires businesses to report their financial position at regular intervals consistently, and not in an inconsistent manner. So if a business reports their finances twice a year. At year end and at mid year, it is possible that at mid year due to seasonal sales performance will be high and business is perceived to be highly profitable.

But financial report at end of year in the off-season will show low performance.

So for seasonal businesses there can be apparent view of a business during the year that can change dramatically because of time at which reports are made.

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Answer:

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Looking at this two conditions from the administration of atropine, the expected outcome of the client is blurry vision and inability to focus or see things close by(farsightedness).

I hope this helps.

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