The advantages of primarily cash pay are the following:
1. It motivates the owner to expand the business.
2. The desirable increase in the level of services.
The disadvantages are the following:
1. There was a little incentive to the owner.
2. There was potential to lose sight to the customers.
Answer:
$273.96
Explanation:
The balance will be the future value of $209, at 7% for four years.
The formula for calculating the future value is as below.
FV = PV × (1+r)^n
Where PV is the present value, $209
r= is the interest rate 7% or 0.07
n= 4 years
FV = $209 x ( 1+ 0.07) ^4
Fv =$209 x 1. 310
Fv = 273.9563
Fv= 273.96
Answer:
= 11.85%
Explanation:
After tax cost of debt = (1 - tax rate) x debt
(1 - 0.21) x 15%
0.79 x 15% = 11.85%
Answer:
$42.5 billion
Explanation:
the expected value formula = ∑ (valueₙ x probabilityₙ)
expected value = (low value x probability of low value) + (most likely value x probability of most likely value) + (high value x probability of high value)
= ($5 billion x 20%) + ($45 billion x 70%) + ($100 billion x 10%) = $1 billion + $31.5 billion + $10 billion = $42.5 billion
