Which of the following accounts will give u the least access to your money
2 answers:
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Answer:
$120,000
Explanation:
Given that,
stock options = 90,000
Each option can be exercised to acquire one share of $1 par common stock for $12.
Total Value of the option = stock options × fair value of the options
= $90,000 × $5
= $450,000
company to estimate that 10% of the options would be forfeited, so,
= 90% of Total Value of the option
= 0.9 × $450,000
= $405,000
2 out of 3 years = $405,000 × 2/3
= $270,000
= $150,000
Compensation expense (2019) = $270,000 - $150,000
= $120,000
The value of Net present value is $12,895.45.
Given that
initial investment = $50,000
1st-year cash flow = $15,000
2nd-year cash flow =$ 25,000
3rd-year cash flow =$ 30,000
4th-year cash flow = $20,000
5th-year cash flow = $15,000
rate = 20%
using formula
- The current value of a future stream of payments from a business, project, or investment is determined using net present value, or NPV.
- You must predict the timing and size of future cash flows in order to determine NPV, and you must choose a discount rate that is equal to the least allowable rate of return.
- Your cost of capital or the rewards offered by substitute investments with comparable risk may be reflected in the discount rate.
- Positive NPV indicates that the rate of return on a project or investment will be higher than the discount rate.
- to learn more about Net present value with the given link
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