Answer:
$1,780,000
Explanation:
The computation of the initial cash flow for this building project is shown below:
= Estimated building cost + appraised cost of the lot
= $1,110,000 + $670,000
= $1,780,000
Simply we added the estimated building cost and the appraised cost of the lot so that the initial cash flow amount can come.
All other information which is given is not relevant. Hence, ignored it
Answer:
I believe that this answer is true
Explanation:
Answer:
C.principal-agent problems.
Explanation:
The acquisition of Movo Automobile is a typical example of AGENCY COST. Under the Agency cost theory, managers are agents of shareholders who represents principal in the principal - agent problem.
Agency cost is a situation where agents become selfish and pursue strategies and policies that will promote the self interest of agents and cause dissatisfaction to principals.
Answer:
High capital expenditures, low depreciation, increasing working capital
Explanation:
In simple words, cash flows refers to the in and out transnfer of cash from and by a company while operating their business and doing several differnet transactions. You just had to spend a great deal for cashflow to really be unfavorable, despite higher profits. Reinvestment consists of two components: the disparity among the capital expenditure and the deterioration which is also termed as net capital expendture as well as the working capital impact (with diminishing cash flows increasing).
