The right answer for the question that is being asked and shown above is that: "corporate bonds."The cash flows for a perpetuity continue into the future indefinitely. An example of a perpetuity is: <span>corporate bonds</span>
Answer:
COnsider the following calculations
Explanation:
1. $
Annual Savings in Part-time help 6300
Added Contribution Margin from expanded sales 2600x1.50 3900
Annual Cash Inflows 10200
2.
NPV @ 5%
= Present Value of Cash inflows - Present Value of Cash outlfows
= [10200x 5.076] - 47300
= $4475
NPV @ 10%
= Present Value of Cash inflows - Present Value of Cash outlfows
= [10200x4.355] - 47300
= -$2779
Internal Rate of Return = Lower Rate + [Lower rate NPV/ (Lower rate NPV - Higher rate NPV] x Difference in rates
= 5 + [4475 / (4475+2779)] x 5
= 8%
3. NPV @ 5%
= Present Value of Cash inflows - Present Value of Cash outlfows
= [(10200x 4.355) + (12000x0.564)] - 47300
= $3889
NPV @ 15%
= [(10200x 3.784) + (12000x0.432)] - 47300
= -$3519
Internal Rate of Return = Lower Rate + [Lower rate NPV/ (Lower rate NPV - Higher rate NPV] x Difference in rates
= 10 + [3889 / (3889+3519)] x 5
= 13%
Answer: Option C
Explanation: As per the monetary unit assumption, only those transactions that could be valued in monetary terms are considered to be important. The transactions or events that have only qualitative aspects are non relevant for accounting purposes.
It makes a assumption that the value of dollar will remain stable over time, which is incorrect. This concept does not take into consideration the problem caused by the historic cost recording.
Hence from the above we can conclude that the correct option is C.
A free rider is option(b) i.e, Someone who consumes a public good but does not pay for it.
<h3>What is meant by the free rider?</h3>
A free-rider problem is a form of market failure that happens when those who use resources, public commodities, or communal services underpay for them or do not pay for them at all. Free riders are an issue because they might still access or utilize the goods even though they aren't paying for them.
For instance, soliciting donations in a museum or garden. The donation sums would assist in paying for the garden/museum even if there would still be free riders.
Free riding hinders traditional free-market techniques of producing and consuming goods and services. Because individuals can still benefit from a shared resource even if they don't participate, free riders have no reason to do so.
To know more about free riders refer to: brainly.com/question/25800077
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Answer:
Gross Profit: $136.200
Operating Profit: $ 78.400
Explanation:
Gross Margin income statement
- Return & Allowance -$ 8.100
<em><u>Gross Profit $ 136.200
</u></em>
- Management Expenses -$ 39.500
- Advertising Expenses -$ 2.800
<em><u>EBIT $ 78.400
</u></em>
- Interest Expenses -$ 5.000
<em><u>EBT $ 73.400
</u></em>
<em><u>Net Income $ 57.200</u></em><em><u>
</u></em>