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Brums [2.3K]
3 years ago
12

Capstone Investments is considering a project that will produce cash inflows of $11,000 at the end of Year 1, $24,000 in Year 2,

and $36,000 in Year 3. What is the present value of these cash inflows at a discount rate of 12 percent?
a.$41,997.60

b.$46,564.28

c.$54,578.17

d.$54,868.15

e.$63,494.54
Business
1 answer:
kherson [118]3 years ago
3 0

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Cash inflows:

Year 1= $11,000

Year 2= $24,000

Year 3= $36,000

To calculate the present value, we need to use the following formula:

FV= PV*(1+i)^n

Isolating PV:

PV= FV/(1+i)^n

Year 1= 11,000/(1.12)= $9,821.43

Year 2= 24,000/(1.12^2)= $19,132.65

Year 3= 36,000/(1.12^3)= $25,624.09

Total= $54,578.17

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Aardvark Enterprises has agreed to be acquired by Lawson Products in exchange for $23,000 worth of Lawson Products stock. Lawson
Brut [27]

Answer:

$57,100

Explanation:

Aardvak enterprises has agreed to be exchanged by Lawson's products

The exchange is $23,000 worth of Lawson's product stock

Lawson's has an 1,300 shares as outstanding at a price of $15 per share

Aardvak has 1,900 shares outstanding with a market value of $18 per share

The incremental value of the acquisition is $3,400

Therefore, the value of Lawson's product after the merger can be calculated as follows

= (1,300 × $15) + (1,900×$18 )+ $3,400

= $19,500+$34,200+$3,400

= $57,100

Hence the value of Lawson's product after the merger is $57,100

7 0
3 years ago
Which federal legislation gives consumers the right to know what is in their credit report?
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Answer:

b. the fair credit reporting act

Explanation:

"The Fair Credit Reporting Act (FCRA) is a federal law that helps to ensure the accuracy, fairness and privacy of the information in consumer credit bureau files. The law regulates the way credit reporting agencies can collect, access, use and share the data they collect in your consumer reports."

Exert from: https://www.experian.com/blogs/ask-experian/credit-education/report-basics/fair-credit-reporting-act-fcra/#:~:text=The%20Fair%20Credit%20Reporting%20Act%20(FCRA)%20is%20a%20federal%20law,collect%20in%20your%20consumer%20reports.

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3 years ago
While managing a successful Google Ads campaign, why would you choose automated bidding instead of manual bidding? Because cross
luda_lava [24]

Answer:

Because given the dynamic nature of Google's auctions, the appropriate bid can often be a moving target that's challenging to reach at scale when using manual bidding.

Explanation:

Above all, the adequate strategy depends on your company's marketing goals. Therefore, it is wise to always take into consideration that first. When manually bidding the auctions, it is important to understand the downside of doing so. The actual bids can vary depending on each situation.

For example, you have determined that a specific keyword is of extreme value for your business, so you set a high manual bid for it. But, what happens when it doesn't get searched for a while or simply gets dominated by a group of complimentary keywords? That is exactly why automated bidding gets more convenient and simple.

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Answer:

The correct answer is contractual institutions.

Explanation:

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Have a nice day!

5 0
3 years ago
Amazon, a successful online retailer, manages an extensive customer database that is used to determine which products are sugges
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Answer:

I think there is something missing in this question. We do not have enough statements to answer it.

Explanation:

6 0
4 years ago
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