The correct statement regarding the importance of assessing a company's risk of paying debt is when a company finances their assets through borrowing and will need to make enough money to pay off the debt.
Financial Risk is defined as the possibility of making a loss or a gain on a particular investment.
As a result of this, it is important that a company makes a good risk assessment to find out if there is a good chance of paying off a debt.
The importance of this is to make sure that there is enough money to settle the debts through income.
Therefore, the correct answer is option A
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Answer:
separating a company's products and services into different categories that represent its business portfolio.
Explanation:
If the steps are small, a step-variable cost may be approximated using a Variable cost function without significant loss in accuracy.
<h3>Variable cost function</h3>
- An expense for the company that varies according to how much is produced or sold is called a variable cost.
- Depending on a company's production or sales volume, variable costs grow or fall. They climb as production rises and reduce as production declines.
- It is a production cost whose level fluctuates in response to shifts in a business's manufacturing activities.
- For instance, the raw materials required to make a product's components are regarded as variable costs because they frequently change depending on the volume of units produced.
- The total variable cost curve depicts the relationship between total variable cost and the volume of output produced graphically.
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Primary market help this helps
Answer:
PV of the six year annuity = $201,923.57
Explanation:
<em>This is an example of an advanced annuity. A series of constant amount receivable for certain number of years with first one occurring immediately.</em>
Present Value of the annuity for the next five years=
A× 1- (1+r)^(-n)/r
A- annual cash flow, n- number of period, r-interest rate per period
A- 43,000, r- 11%, n- 5
=43,000× (1- 1.11^(-5))/0.11
=158,923.57
The first cash flow of 43,000 occurs immediately , hence it is already discounted. Hence the PV of the total cash flows would be the sum of the PV of the next five year cash flows and the one received now.
Hence,
PV = 158,923.57 + 43,000= 201,923.57
PV of the six year annuity = $201,923.57
