1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Pani-rosa [81]
3 years ago
14

TH Manufacturers expects to generate cash flows of $129,600 for the next two years. At the end of the two years the business wil

l be sold for an estimated $3.2 million. What is the value of this business at a discount rate of 14 percent?
Select one:

a. $2,704,654.82
b. $2,284,644.28
c. $2,675,703.29
d. $2,848,391.60
e. $2,900,411.36
Business
1 answer:
arsen [322]3 years ago
7 0

Answer:

Vo  = <u>C1  </u>    +        <u>C2 + V2</u>

        1 + k              (1 + K)2

Vo = <u>$129,600  </u> +   <u>$129,600 + $3,200,000</u>

        1 + 0.14            (1 + 0.14)2

Vo = $113,684.21  + $2,562,019.08

Vo = $2,675,703.29

The correct answer is C

Explanation:  

The current value of the business equals cashflow in year 1 divided by 1 + K plus the aggregate of cashflow and sales value in year 2 divided by 1 + k raised to power 2.

You might be interested in
The Jabba Corporation manufactures the "Snack Buster" which consists of a wooden snack chip bowl with an attached porcelain dip
Masja [62]

Answer:

The fixed overhead cost that can be eliminated if the bowls are purchased from an outside supplier is a relevant cost. The variable selling cost of the snack is also a relevant cost.

The correct answer is A

Explanation:

Relevant costs are costs that relate to future decisions. All variable costs are relevant for decision-making. Eliminated fixed overhead are also relevant for decision-making.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

3 0
3 years ago
By definition, imports are Group of answer choices people who work in foreign countries. limits placed on the quantity of goods
Naddik [55]

Answer:

goods produced abroad and sold domestically.

Explanation:

Exports are goods produced in the domestic economy and sold abroad.

Quotas limits placed on the quantity of goods leaving a country.

Countries trade goods for which they have comparative advantage and not absolute advantage.

I hope my answer helps you

5 0
3 years ago
In this exhibit (Monopoly Through Collusion), is an illustration of the situation in an industry that consists of two firms faci
Vinil7 [7]

Answer: please refer to the explanation section

Explanation:

Assume we have two accompanies in the market Firm A and Firm B and the Demand curve be Dq. When Firm A and Firm B form a Monopoly through Collusion the will split the demand in half, each firm will act as if its demand curve is Dq/2.

Firm A = Dq/2,  Firm B = Dq/2. Firm A will supply Q/2 units and Firm B will supply Q/2 units. The Market Demand curve will the combined demand curves of both firms. Market Demand Curve = Dq/2 + Dq/2 or simply Dq

8 0
3 years ago
________ authority derives from personal expertise, technical knowledge, moral worth, and the ability to lead and to generate co
tensa zangetsu [6.8K]

Answer:

Informal Authority

Explanation:

Informal Authority is a concept first elaborated by Henri Fayol. This is the type of authority that does not stem from official positions or promotions, but from other factors such as expertise, technical knowledge, and even charisma.

This is why this type of authority is known as "informal", because it may be held by a person who does not necessarily have a high position in the organization (as long as the person has some, or all the characteristics previously mentioned).

5 0
3 years ago
true or false The scope of a project is the overall work that needs to be completed to deliver the desired product, service, or
ohaa [14]
The answer would be that the answer is true
4 0
3 years ago
Other questions:
  • The developers of your new system have proposed two different AIS designs and have asked you to evaluate them. This evaluation p
    7·1 answer
  • Anyone knows how to get free chorus hero I need it for a worksheet that’s due today but u have to pay to use chorus hero I don’t
    13·1 answer
  • Ashton wants to generate interest in the new branch of his hobby stores that is opening next week. He plans to offer temporary p
    6·1 answer
  • Importance of completing client records correctly
    6·1 answer
  • Bob Denton of Denton Pest Control buys equipment from Allied Tools because Allied hires him to spray its warehouse for insects p
    12·1 answer
  • Suppose that the market for computers is dominated by a single firm, like Dell, that is able to exert influence over prices and
    13·1 answer
  • Abby's Designer Wear is a large boutique of designer clothes. Over the past year, the business slowed down, and the boutique sta
    9·1 answer
  • The development of cotton and woolen mills in the mill cities of England, and later New England, caused tremendous sociological
    5·1 answer
  • When a company prepares financial statements using standard costing, which items are reported at standard cost
    9·1 answer
  • Why does the quantity a supplier is willing to give go up when the price goes up
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!