I’ll say it’s A
But I think it’s C
It’s gonna be either A or C
Answer:
the present value is $13,588.97
Explanation:
The computation of the present value of the retreading operation is shown below:
As we know that
Present value = Future value ÷ (1 + rate of interest)^time period
= $2,700 ÷ 1.09^1 + $2,700 ÷ 1.09^2 + $2,700 ÷ 1.09^3 + $2,700 ÷ 1.09^4 + $2,700 ÷ 1.09^5 + $2,700 ÷ 1.09^6 + $2,700 ÷ 1.09^7
= $13,588.97
Hence, the present value is $13,588.97
Answer: are incurred even if nothing is produced.
Explanation:
Fixed costs are referred to as the cost that doesn't vary with the production level. Even if the company doesn't produce anything, the fixed cost will still be incurred.
The fixed cost is different from the variable cost which is the cost that varies along with production. Examples of fixed cost include salaries, rental lease payments, salaries, etc.
Answer:
The expected year-end free cash flow is $2.44 million
Explanation:
The formula to compute free cash flow is shown below:
Value of operations = (free cash flow) ÷ (weighted average cost of capital - growth rate)
$57.50 million = free cash flow ÷ (10.25% - 6.00%)
$57.50 million = free cash flow ÷ 4.25%
So, free cash flow equal to
= $2.44 million
The growth rate should always be deducted from the weighted average cost of capital in computing the year ending free cash flow.
condition where different economic firms seek to obtain a share of a limited good by varying the elements of the marketing mix: price, product, promotion and place.
