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8_murik_8 [283]
3 years ago
12

g You will be receiving cash flows of: $2,000 today, $3,000 at end of year 1, $5,000 at end of year 3, and $7,000 at end of year

5. What is the present value of these cash flows at an interest rate of 10%?
Business
2 answers:
MaRussiya [10]3 years ago
6 0

Answer:

$12 830.29

Explanation:

The future cash flows are discounted at the  interest rate to get present value

Year 0 =$2000

Year 1 = $3000

Year 3 = $5000

Year 5 = $7000

r = 10%

PV of cash flows = 2000+3000/(1.1)^1+5000/(1.1)^3+7000/(1.1)^5

                             =2000+2727.27+3756.57+4346.45

                              =$12830.29

     

enot [183]3 years ago
5 0

Answer:

The present value of the cashflows will be $12830.30

Explanation:

The present value of the cashflows can be calculated by dividing the cash flows by the appropriate discount rate and for the appropriate time period.

The present value of the given cash flows will be,

Present Value = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n

As the first payment is received today, it will already be in the present value so it will not be discounted.

Present value = 2000 + 3000 /  (1+0.1) + 5000 / (1+0.1)^3 + 7000 / (1+0.1)^5

Present value = $12830.295 rounded off to $12830.30

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Christie has just started with a travel agency. and she has been offering clientsand prospective clients a range of packaged tou
Marta_Voda [28]

<u>Full question:</u>

Christie has just started with a travel agency. and she has been offering clients and prospective clients a range of packaged tours. She is concerned. because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter. who has been with the agency for several years, is having a great deal of success by working closely with the clients. seeking their ideas. and building customized tour packages for each one based on their suggestions.Peter's approach is based on A. transaction-oriented marketing.B. premium C. Vlaue Cocreation D.sales-oriented marketing.

Peter's approach is based on value cocreation.

<h3><u>Explanation:</u></h3>

Value co creation is one of the strategies used in the business. It is a business strategy that helps in creation and promotion of the involvement of the customers actively in creation of on demand and made to order products. By using this strategy they will get the exact product they are in need and they can also involve in understanding how those products are formed.

In the example given, The colleague of Christie, Peter is being working closely with the clients and he offers the services by asking the customer's ideas and their suggestions. Thus the approach followed by Peter is value cocreation.

6 0
3 years ago
Capital budgeting is a tool that explicitly incorporates the time value of money in decisions involving significant long-term in
Elena L [17]

Answer: True

Explanation: Capital budgeting is a tool used for evaluating the profitability of long term investments by the company. In the process of capital budgeting, the incremental expected cash inflows are compared with the initial cash outflow of the project using time value of money analysis.

In time value of money analysis the expected cash inflows are discounted back to the present time by using a particular rate, and then that present value is deducted from outflow to ascertain the profit.

4 0
3 years ago
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply ov
Alex73 [517]

Answer:

Under/over allocation= $6,850 overallocated

Explanation:

Giving the following information:

The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 153,000 and estimated factory overhead is $1,208,700.

The following information is for September:

Direct labor hours: Job X 9,000 Job Y 7,500

Labor costs incurred: Direct labor ($8.00 per hour) $ 132,000

Manufacturing overhead costs:

Indirect labor 56,000

Factory supervisory salaries 13,100

Rental costs:

Factory $ 11,300

Total equipment depreciation costs:

Factory $ 12,400

Indirect materials used $ 30,700

Total= 123,500

First, we need to determine the manufacturing overhead rate:

manufacturing overhead rate= total estimated manufacturing overhead/ total amount of allocation base

manufacturing overhead rate= 1208700/ 153000= $7.9 per direct labor hour

Allocated overhead= manufacturing overhead rate* actual allocation base= 7.9* 16500 hours= $130,350

Under/over allocation= real overhead - allocated overhead

Under/over allocation= 123500 - 130350= 6850 overallocated

6 0
3 years ago
To transform resources into profits, organizations combine type types of work - operations and ___________.
Vlad [161]

Answer: Apart from the resources, there are three important factors for production, these are work (people or man hours available), investment (machinery and equipment needed) and organization (business planning).

Explanation: The first three factors were selected by the classical economy where Adam Smith and David Ricardo appeared, to these other organizational factors have been added, however their objective is the same, so that a company achieves the goals set, it has the task of combining these factors in the best way possible. Example: maximize man hours, use the best machinery, that the land or resources are prepared for production.

4 0
3 years ago
Which margin size is most appropriate for a business card?
yan [13]
3.5 inches because the normal business card is 3.5 in × 2 in 
3 0
4 years ago
Read 2 more answers
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