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nexus9112 [7]
3 years ago
9

Phillips industries runs a small manufacturing operation. for this fiscal year, it expects real net cash flows of $197,000. the

company is an ongoing operation, but it expects competitive pressures to erode its real net cash flows at 6 percent per year in perpetuity. the appropriate real discount rate for the company is 11 percent. all net cash flows are received at year-end. what is the present value of the net cash flows from the company's operations?
Business
1 answer:
Stolb23 [73]3 years ago
8 0

Answer: Present value of the cash flows of the company is $1,158,824.

Explanation: Philips industries have the cash flow for $197,000. The industry needs to find the present value of the cash flow and the cash flows growth is decreasing every year by 6%.

The present value of the cash flows for perpetuity with decreasing growth rate is:

Present value = Cash flow for year 1 (C1) / (discount rate - growth)

where, Cash flow for the year 1 (C1) = $197,000

Discount rate (r) = 11%

Growth rate (g) = -6%

Present value of the cash flows (PV) = $197000/[0.11 - (-0.060)]

Present value of the cash flows (PV) = $197000/0.17

Present value of the cash flows (PV) = $1,158,824

Therefore the present value of the cash flows of the company is $1,158,824.

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a.)Customers using freeware can personalize the software to meet their needs.

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Jillian has just started her first job with a $45,000 salary at a company with a 401(k) plan that has a 100% match up to 3% gros
gogolik [260]

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Jillian

What Jillian should ideally do is:

a. Contribute 1650 in a Roth IRA, and 1350 In her company’s 401(k) plan.

Explanation:

a) Data and Calculations:

Salary = $45,000

401(k) = 3% of $45,000 = $1,350

Employer's match to the 401(k) = $1,350 (100%)

Savings affordable = $3,000

b) Jillian can contribute to Roth IRA and her company 401(k) which her company will also match 100%.  Her contributions to both funds are within the allowed limits.  In 2020, the allowed limit of 401(k) plan is $19,500 while that of Roth IRA is $6,000.

4 0
3 years ago
The first of two major components of developing a marketing strategy is to _______. a. select a target market b. determine a seg
Brrunno [24]

Answer:The first of two major components of developing a marketing strategy is to<u> select a target market.</u>

<u>Explanation:</u> After determining business products and services the business needs to identify the target market. Identifying the target market is the major step in developing a marketing strategy.

Steps to select a target market

  1. Target market is actually those customers whom we want to sell our products.Concentrating on target market will make it easier to sell our products.
  2. Customers can be targeted on the basis of age,gender,income,occupation,educational level.
  3. Look at the competition that exist .Identify those areas that have been overlooked by our competitors.
  4. If business is already existing than identify those products and services which are bought by current customers and the benefits that they are getting from it.
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When all other factors remain the same, the law of demand tells us that: An increase in your income causes you to buy more hambu
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An increase in your income causes you to buy more hamburgers.

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An increase in your income causes you to buy more hamburgers.

Option "A" is correct because the increase in income exhibits an increase in purchasing power. Moreover, there is a positive relationship between the income the demand for normal goods which means if the income rises, then the demand rises. If the income falls, then demand for goods also falls. Therefore, option "a" is right.

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Which of the following statements are true?
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Answer:

TRUE: A. Different companies will use different charts of accounts based on individual company need.

C. The general ledger contains all of the accounts that a company uses, along with detail of the balances in those accounts.

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A. <u>Different companies will use different charts of accounts based on individual company need.</u>

A chart of accounts is the combination of all the accounts of an organization in an organized and structured model whose objective is to establish a codification so that there is a standardization of the company's financial information to assist the work of the accounting sector.

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<u>C.</u><u> </u><u>The general ledger contains all of the accounts that a company uses, along with detail of the balances in those accounts.</u>

<u> </u>The general ledger can be defined as the set of all accounts held in the organization in detail.

Through the information in the accounts, the organization is able to correctly separate each one by type and carry out the organizational financial statement.

<u />

<u />

6 0
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