Answer:
Operating cash flows
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV is a capital budgeting method used to determine profitable investments
Answer:
Shoe leather costs
Explanation:
(A) Shoe leather costs
(B) Inflation can be defined as the persistent rise in the prices of goods and services. Shoe leather costs can be defined as the costs of time and effort that are encountered by individuals while trying to prevent the effect of inflation. It describes the costs incurred by individuals that visits the bank often inorder to withdraw money needed to purchase goods and services during the time of inflation.
Shoe leather cost arises during the period of high inflation, individuals do not hold large amount of cash because there will be a reduction in the value of the money.
Answer:
D. The order quantity is constant, regardless of the demand.
Explanation:
Basic Continuous Review Model relates to inventory stock management, where each time an inventory unit is added in or moved out the stock level is calculated again.
It do not assume that the order quantity is constant as it calculates inventory level after each order, there is no basic assumption as such.
The review model keeps on moving the stock and tries to maintain such level as by ordering the quantity sold, and it keeps on rotating, but there is no standard set for order quantity.
Answer:
Total $53.0656 (millions)
Explanation:
We will need to add the present value of the coupon payment
and the present value of the maturity date
<u>present value of the annuity:</u>
C= 60 million x 5% /2 1.5
time= 20 years 2 payment per year = 40
rate = 6% annual = 0.06/2 = 0.03 semiannually
PV $34.6722
<u>present value of the bonds:</u>
Maturity 60
time 40
rate 0.03
PV $18.3934
<u>The value of the bond will be the sum of both</u>
PV c $34.6722
PV m $18.3934
Total $53.0656
