The present value of the given cash flow stream at a rate of 10.0% for all the years that is from year zero to year three is $10,777.50. Hence, Option B is correct.
<h3>What is a cash flow stream?</h3>
For describing any business proposal, there are very specific requirements, but the two things that are majorly required are cash flow instances and cash flow stream.
A cash flow stream is basically a kind of specific amount that sometimes flows into or sometimes flows out of an organization. It is basically for a particular time period, which can be calculated with the help of some proposal.
Therefore, the given data after doing these required calculations when the cash flow is calculated at a rate of 10.0%, the amount is $10,777.50. Option B is correct.
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The complete question is attached in text form:
What is the present value of the following cash flow stream at a rate of 10.0%?
Years: CFs:
0 $750
1 $2,450
2 $3,175
3 $4,400
a. $8,283.53
b. $10,777.50
c. $10,866.57
d. $7,749.11
e. $8,907.02
Answer:
a. Breakeven point: 1,500 units.
b. Kid´s Corner would have to sell 2,333.33 units to earn $10,000 in operative income.
Explanation:
a. breakeven point in units
breakeven point= 
b. Operating income = Total revenue - direct costs-indirect costs
$10,000=$25*X-$13*X- 18,000
Where X is the amount of units to sell
Isolating X from the equation, we have:
12X=28,000
X=28,000/12
X= 2,333.33
Answer:
Explanation:
Keeping cool while making a claim ensures clear explaination and direct tone of the message, which when directed towards the company. It helps the insurer work peacefully. Insurer will be happy to clear the claims of people who are cooperative and don't overplay with the value of the claim.
Answer:
a. True
Explanation:
from the CAPM formula we can derive the statemeent as true.
risk free = 0.05
market rate = 0.12
premium market = (market rate - risk free) 0.07
beta(non diversifiable risk) = 0
Ke 0.05000
As the beta multiplies the difference between the market rate and risk-free rate a beta of zero will nulify the second part of the equation leaving only the risk-free rate. This means the portfolio is not expose to volatility
