The correct answer is choice A, a loan obtained to finance the project.
When you are calculating cash flow you are calculating the inflows and outflows of actual liquid cash. The only one of the options that would be considered cash at time 0 is the loan that was obtained to finance the project.
Answer:
The carpenter earned an extra $ nothing in the first year.
$160
Explanation:
Loan 2000
% interest 12%
FV=C*(1+I)
FV=2000*(1+12%)
FV=2000*1,12
FV=2240
Loan = 2000
Interest=240
Earn=400
Extra earning=400-240
Extra earning=160
Explanation:
The income returned by an investment is revenue.
Total income or cash flow minus expenditures is profit.
Hope it will help :)
Answer:
The correct answer is D
Explanation:
EBIT deduct EPS approach to the capital structure is a technique which the businesses uses in order to determine the best ratio of equity as well as debt and that should be used to finance the assets as well as operations of the business.
This approach is a way or method to mathematically project how the structure of the balance sheet will impact the earnings of the company.
So, in this approach the risk is presented by the slope of the line of the capital market.
