Answer:
d. 8%
Explanation:
The computation of the discount rate is shown below:
Initial investment = Present value of cash inflows
where,
Initial investment is $7,139,000
And, the present value of cash inflows
= Annual cash inflows × discount rate
We assume the discount rate be X
$7,139,000 = $1,000,000 × X
So,
X = 7139000 ÷ 1000000 = 7.139
= 8%
We simply applied the above formula in order to find out the discount rate
A fixed price is for a fixed scope of work
Answer: True
Explanation:
Yes, the given statement is true that the IT (information technology) plays an important role for ensuring the financial data accuracy. When settling on business choices, precise money related information is basic.
Large associations commonly have separate department of accounting in the office to do the various function of the accounting , just as accommodate all records, survey the information for exactness, and analysis the information.
It provide the essential data and information and in SEC ( Security and exchange commission) are basically responsible for providing the data and information to the different organization.
Answer:
(a) present value ( 10%) 4437
(b) present value ( 18%) 3709
(c) present value ( 24%) 3280
Explanation:
Cash flow is attached.
We can use excel to get the present value. Also we can discount the 4 values to this moment, and add them.
If we have a bigger rate of discount , the present value will be smaller.
