I believe the answer is A. Hope this helps :)
Answer:
The postponement of a project until conditions are more favorable:
III. could cause a negative net present value project to become a positive net present value project.
Explanation:
With the favorable project conditions, the negative NPV will be revised to a positive NPV because the positive conditions will ensure the generation of positive cash inflows. The result is that the project will be assessed as acceptable since the net present value will become positive. Generally, favorable project conditions create outcomes that are positive for the cash flows, thereby generating more positive cash inflows and reducing the impact of cash outflows.
Answer:
the present vlaue of the ledased property = $251,298
Explanation:
the free market value in 10 years = ($27,500 x (1 + 2%)¹⁰) / 10% = $335,223
free cash flows year 1 - 9 = $24,000
free cash flow year 10 = $359,223
discoutn rate = 11.5%
using a financial calculator, the present value of the property = $251,298
the role of the SEC is to Protect investors. Maintain fair, orderly, and efficient markets.
Answer:
$1,700
Explanation:
Although the minimum equity to open a long margin account is $2,000. However, this does not apply if the securities in the account are paid fully.
It will amount to potential loss if a customer is asked to deposit more than 100% when buying. Since the customer wants to buy 1,700 of stock, it means that 100% or $1,700 (100 shares × $17) must be deposited.