Terminal cash flow = $281,a hundred + $60,000 = $341,one hundred.
Terminal cash flows are cash flows at the end of the challenge after all taxes are deducted. In different phrases, terminal coins flows are the net amount made by the organization after disposing of the asset and necessary amounts are paid. these are calculated after the disposal of assets and all different amounts are paid (fees, taxes, and many others.).
The calculation of NPV encompasses many economic topics in a single component: cash flows, the time fee of cash, the cut price rate over the period of the undertaking (generally the weighted common fee of capital (WAAC)), terminal value, and salvage fee.
For the terminal cost to be significant it should be discounted to the existing use of a discount fee. The terminal cost is added to the prevailing value of an asset's cash flows within the years preceding it to calculate the full gift cost.
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Answer:
Option D is correct,$1,950,000
Explanation:
In order to compute the closing balance of retained earnings, the preferred shares dividends for prior and current years as well as the common stock dividend must be deducted from net income before adding the remnant to the opening retained earnings:
Net income $870,000
Preferred dividend prior year($100*20000*8%) ($160,000)
Preferred dividend current year($100*20000*8%) ($160,000)
Common stock dividend($2*100,000) ($200,000)
net income after dividends $350,000
Closing retained earnings=$1600,000+$350,000
=$1,950,000
Answer:
The economy's inflation rate tends to stable and low
Explanation:
As a central bank has greater independence from the government, the economy inflation rate tends to be stable and low Because when central banks are independent from the government, they tend to make better monetary policy decisions as they do not work for votes, so they take suitable measure without thinking about politics. Thus, they have better credibility in the country.
The independence granted to the central bank tend to let the bank utilizes its full fiscal knowledge at its disposal with the help of past record, knowledge of accountant, economist, financial analyst and other expert working under the independent and head bank. This leads to stability in the economy, and inflation expectation are low.
Agency costs faced by MNCs may be larger than those faced by purely domestic firms because:
- monitoring of managers located in foreign countries is more difficult AND foreign subsidiary managers raised in different cultures may not follow uniform goals.
- monitoring of managers located in foreign countries is more difficult.
- .MNCs are relatively large.
- foreign subsidiary managers raised in different cultures may not follow uniform goals.
<h3>What are multinational corporations?</h3>
Multinational corporations can be regarded as one that have the license to operates in more than one country at a time.
Agency costs faced by MNCs may be larger than those faced by purely domestic firms due to how foreign subsidiary managers raised in different cultures may not follow uniform goals.
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