Answer and Explanation:
The computation of the present values of both alternatives is shown below:
For alternative one, the lump sum amount is
= Yearly payment × PVIFA factor at 8% for 12 years
= $50,000 × 7.5361
= $376,805
And, in the alternative 2, the lumpsum amount i.e. present value is $452,000
So as we can see that the alternative 2 is better as the lumspsum amount is high as compared with the alternative 1
$73,000x8.5%=$6,205 for one year
I believe you are looking for either this number or $6,205x8?
$49,640 for 8 years
GDP (or Gross Domestic Product) is the total value of goods and/or services provided in a country during one year. So, if Disney were to open another amusement park, it would bring the value of Disney up, which means that this would be counted as GDP.
Answer:
-0.028870144
Explanation:
The computation of the annual rate of return on this sculpture is shown below:
We have to find the compound annual growth rate which is
= (Ending value ÷ Beginning value)^ (1 ÷ time period) - 1
= ($10,605,500 - $12,643,500)^ (1 ÷ 6) - 1
= -0.028870144
The six year comes from
= The Year 2015 - the year 2009
= Year 6
Basically, we applied the above formula so that the annual rate of return could come
Answer:
Value of the company is $334,101
Explanation:
Value of unlevered firm = 
Where;
EBIT = Earnings before interest and tax
t = tax rate
ke = Cost of equity (cost of capital)
Value of unlevered firm = 
value of unlevered firm = $331,571.43
Value of firm = Value of unlevered firm + Debt (tax rate)
Value of firm = $331,571.43 + $11,000*(23%)
Value of firm = $334,101.43
Value of firm = $334,101
