Answer:
Present value of the cash flows = $1,625,000
/1.04 + $1,685,335/1.04 + $1,975,000/1.04 + $600,000/1.04 = $5,389,337.27
You recently moved to a new apartment and signed a contract to pay monthly rent to your landlord for a year. ⇒ ANNUITY
SOE Corp. hires an average of 10 people every year and matches the contribution of each employee toward his or her retirement fund. ⇒ UNEVEN CASH FLOW (EACH EMPLOYEE'S SALARY VARIES, SO THE TOTAL EXPENSE ALSO VARIES)
Franklinia Venture Capital (FVC) invested in a budding entrepreneur's restaurant. The restaurant owner promises to pay FVC 10% of the profit each month for the next 10 years. ⇒ UNEVEN CASH FLOW (PROFITS ARE NOT IDENTICAL FORM ONE PERIOD TO ANOTHER)
You have committed to deposit $600 in a fixed interest-bearing account every quarter for four years. ⇒ ANNUITY
it would have to be unclear in his speech because he has smart ideas he outstanding if he was to speak loud his manger would tell him his voice is loud or low.
There are many risks that businesses face, including:
- Competition risk - there could be another business that draws customers away from your company.
- Economic risk- if the economy is doing poorly, it could increase costs or reduce sales
- Reputation - if someone posts a bad review online, how will that effect your sales?
- Legal/Compliance issues- you have to comply with industry regulations and laws, and there is great risk to you and the business if you break these rules
- Resources risk - if you rely on a specific material to run your business and that material isn't available you could be in trouble (ex. if the orange crop is wiped out by a hurricane, orange juice makers could be in trouble)
Answer:
$3,642.50
Explanation:
For computing the average annual amount of net income (loss), first we have to compute the net income which is shown below:
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
$9,700 = $0 + Net income - ($2,420 + $0 + $1,440 + $1,010)
$9,700 = $0 + Net income - $4,870
So, the net income is
= $9,700 + $4,870
= $14,570
Now the average annual amount of net income is
= 
= 
= $3,642.50
