Answer:
Consider the following analysis.
Explanation:
<u>Net Income is adjusted for below
</u>
Depreciation and amortization expense.
Revenues and expenses that did not provide or use cash.
Changes in current liabilities related to operating activities.
Gains and losses from nonoperating items.
<u>Net Income is not adjusted for:
</u>
Changes in noncurrent assets and noncurrent liabilities.
Answer:
Present value (PV) =$30,000
Number of years (n) = 3 years
Interest rate (r) = 10% = 0.10
Annual payment (A) = ?
PV = A<u>(1 - (1 + r)-n</u>)
r
$30,000 = A<u>(1 - (1 + 0.10)-3)</u>
0.10
$30,000 = A<u>(1 - (1.10)-3)
</u>
0.10
$30,000 = A(2.486851991)
A = <u>$30,000
</u>
2.486851991
A = $12,063
The amount of annual payment that the company must make is $12,063.
Explanation:
In this case, we will apply the formula for present value of an ordinary annuity. The present value, interest rate and number of years have been given with the exception of the annual payment. Thus, the annuity payment is made the subject of the formula.
Answer:
C. <u>flank</u>
Explanation:
A flank attack refers to an act by a product company whereby it attacks the weak links in the products of it's major competitor, particularly a leader.
In such scenarios, the company observes the limitations of the competitor's products and then embodies them in it's own new similar product. In a flank attack, the two companies deal in similar products which can be substituted for one another.
In the given case, Colgate came out with a similar product with improved aspect which it's major competitor's product overlooked i.e dental sensitivity aspect. This represents a case of flank attack.
The money demand curve is downward sloping, i.e., the demand for holding money increases with decrease in interest rates. The short-term interest rate (i) is determined by the equilibrium of the supply and demand for money. If the interest rates are above the equilibrium, there is excess supply of money.