That is true, if you raise the rate then the present value falls.Of course, the present value will fall assuming the existence of positive cash flows. This annuity present value is divided into four pieces which are: the present value (PV), the periodic cash flow (C), the discount rate (r), and the number of payments, or the life of the annuity, (T).
Answer:
$1,109,700
Explanation:
The computation of the net credit sales is shown below:
Ending balance of account receivable = Net credit sales ÷ total number of days in a year × (credit days + average days)
$123,300 = Net credit sales ÷ 360 × (30 days + 10 days)
$123,300 = (Net credit sales ÷ 360 days) × 40 days
$123,300 × 360 days ÷ 40 days = Net credit sales
So, the net credit sales would be
= $1,109,700
Explanation:
Eight varieties of saving and investment options include certificates of deposits, mutual funds, annuities, savings accounts, stocks, bonds, , real estate and commodities . A few are explained below:
Savings account:
A savings account is a great place to keep cash that you don't plan to spend immediately
MF (Mutual fund):
This invests the money in various asset classes like equities and bonds. An AMC(asset management company) makes these investments on behalf of the investors.
Real-estate: Residential, industrial, buildings and lands constitutes of real-estate.
Answer:
e. Company HD has a lower times interest earned (TIE) ratio.
Explanation:
We know that both companies have the same EBIT, because both have the same Basic Earning Power, which is calculated by dividing EBIT by Total Assets.
Then if company HD has a higher debt ratio and higher interest expenses, it means that the Times Interest Ratio in HD company it's lower than LD company, the Times Interest Ratio , it's calculated by dividing EBIT/Interest Expenses, at the same EBIT, but higher interest expenses on HD company, it means a lower Times Interest Ratio to this company.
B. Investment
Hope this helps. :)
