1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
swat32
3 years ago
9

Which of the following statements is CORRECT?a. If CF0 is positive and all the other CFs are negative, then you can still solve

for I.b. If you have a series of cash flows, each of which is positive, you can solve for I, where the solution value of I causes the PV of the cash flows to equal the cash flow at Time 0.c. If you have a series of cash flows, and CF0 is negative but each of the following CFs is positive, you can solve for I, but only if the sum of the undiscounted cash flows exceeds the cost.d. To solve for I, one must identify the value of I that causes the PV of the positive CFs to equal the absolute value of the FV of the negative CFs. It is impossible to find the value of I without a computer or financial calculator.e. If you solve for I and get a negative number, then you must have made a mistake
Business
1 answer:
Romashka-Z-Leto [24]3 years ago
4 0

Answer:

If CF0 is positive and all the other CFs are negative, then you can still solve for I

TRUE.  This will be the formula for ordinary annuity.

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

This is the case of a loan on which the company receives a positive cash flow at the beginning and then makes subsequent cash payments, thus negatives cash flows.

Explanation:

If you have a series of cash flows, and CF0 is negative but each of the following CFs is positive, you can solve for I, but only if the sum of the undiscounted cash flows exceeds the cost

FALSE If the sum is below the cost then it will give a negative rate

To solve for I, one must identify the value of I that causes the PV of the positive CFs to equal the absolute value of the FV of the negative CFs. FALSE you can't compare a present value with a future as they are on different dates.

It is impossible to find the value of I without a computer or financial calculator.

FALSE There are method of approximation the difference is that the computer does this faster than humans.

If you solve for I and get a negative number, then you must have made a mistake

FALSE if the project return are lower than cost the rate will be negative.

You might be interested in
Junk bonds are high-risk, high-yield debt instruments. They are often used to finance leveraged buyouts and mergers, and to prov
Luda [366]

Answer:

true              

Explanation:

Junk bonds can be defined as the bonds that require a higher default risk than most corporate and government issued bonds. A bond is indeed a debt or promise to pay interest payments to investors in return for purchasing the bond and the return of the invested principal.

Junk bonds depict debt issued by financially struggling companies with a significant risk to defaulting or failing to pay even their own monthly payments or reimbursing the principal to lenders. Thus, from the above we can conclude that the given statement is true.

3 0
3 years ago
To qualify for a mortgage loan originator endorsement, applicants must meet education, examination, credit report, and ______ re
Alexandra [31]

To qualify for a mortgage loan originator endorsement, applicants must meet education, examination, credit report, and <u>Education</u> requirements.

A broker working as a sole proprietor who performs residential mortgage loan originator (MLO) sports should record a corporation (MU1) form and a man or woman (MU4) form electronically through NMLS to gain a business enterprise MLO license endorsement.

For individuals licensed by means of the branch of real estate, a loan originator way An man or woman who takes a residential loan software or offers or negotiates terms of a residential mortgage for compensation or benefit.

Loan originators consist of retail banks, loan bankers, and mortgage brokers.

Learn more about mortgage loan originators here

brainly.com/question/28079837

#SPJ4

7 0
2 years ago
The following information was used in reconciling the bank account for Minerva Company on October 31: Balance per bank, October
Strike441 [17]

Answer: A $37.280.

Explanation:

Adjusted book balance will include those transactions made or charged by the bank for/to the company so will include;

= Balance per books - Insufficient funds check - Utility bill paid by bank  - Check printing charge

= 40,000 - 1,400 - 1,240 - 80

= $37,280

3 0
3 years ago
Assume that Horicon Corp acquired 25% of the common stock of Sheboygan Corp. on January 1 for $300,000. During the year Sheboyga
sergejj [24]

Answer:

Cash $60,000 (debit)

Investment Income $60,000 (credit)

Explanation:

It is Important to note that the Acquirer (Horicon Corp) is a Corporate.

The Acquisition of 25% of the common stock of Sheboygan Corp constitute an Asset for Horicon Corp since Economic Benefits are expected to be received from the Investment.

The Receipt of Dividends from these shares will constitute Investment Income and the entry is as follows :

Cash $60,000 (debit)

Investment Income $60,000 (credit)

6 0
3 years ago
Read 2 more answers
What are the primary advantages to owning a franchise?
Volgvan

Answer:

Explanation:

Owning a franchise has the following main advantages:

1) A franchise owner gets valuable help throughout the lifespan of the business. Upon acquiring a franchise, the business owner receives a continuous training and assistance necessary for marketing and management.

2) Owning a franchise comes with a low rate of failure. A franchise comes with an established business concept that is already successful in the market which assures the owner of better chances of success compared to starting up an independent business.

6 0
3 years ago
Read 2 more answers
Other questions:
  • A small economy increased its capital per hour worked (k/l ) from $40,000 to $50,000. As a result, real GDP per worker (Y/L) gre
    6·1 answer
  • The cost of goods sold includes $1,200,000 of fixed manufacturing overhead; the operating expenses include $100,000 of fixed mar
    11·1 answer
  • Rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they off
    13·1 answer
  • Should the law allow someone that becomes voluntarily incapacitated through intoxication or other means escape from a contractua
    11·1 answer
  • Which tool would you use to make sure you are working on the cause of the problem and not being sidetracked by an obvious sympto
    13·1 answer
  • How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company?
    14·1 answer
  • Barry is a self-employed attorney who travels to New York on a business trip during the year. Barry's expenses were as follows:
    9·1 answer
  • Illustrate how a liberalized global economy can influence upon natural resources concerning the granting of logging franchise ri
    9·1 answer
  • Conifer Craft is a furniture firm that specializes in creating customized furniture for the commercial market. The firm has rece
    5·1 answer
  • A general rule of thumb is to keep your credit utilization rate at 30% or lower. What is your approximate credit utilization rat
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!