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Pani-rosa [81]
2 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]2 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.

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Answer: True- The comparative advantage in the dish washing

Explanation:

Yes, the given statement is true that both the coworkers that is Rodney and Yvonne determining the comparative advantages in the store by washing all the dishes.

The comparative advantages is one of the term that is used to refers to the economical ability that helps in providing the various types of products and also reflecting the overall production opportunity in terms of cost.

Accordion to the given scenario, we use the comparative advantages for determining the person for washing the dishes from both the co-workers.

Therefore, The given answer is correct.

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3 years ago
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3 0
2 years ago
Assume the stock return for the next month is a random variable that follows a Normal distribution with the mean 1.5% and the st
EleoNora [17]

Answer:

Check the explanation

Explanation:

The price of the original asset is the same amount as the expected future price which are being discounted at the risk-free rate.

Price of Customized Derivative= Probability of return>0.2%*Pay off+ Probability of Return<0.2%*Payoff/(1+r)^T

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8 0
3 years ago
At an output level of 76,000 units, you calculate that the degree of operating leverage is 3.3. The output rises to 81,000 units
Diano4ka-milaya [45]

Answer:

21.71%

Explanation:

We know that

Degree of operating leverage = Change in operating cash flow  ÷ Change in the output level

3.3 = Change in operating cash flow  ÷ 0.065789

So, the percentage change in OCF = 3.3 × 0.065789

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The Change in the output level is computed below

= (Increased output - normal output level) ÷ normal output level

= (81,000 units - 76,000 units) ÷ 76,000 units

= 5,000 units ÷ 76,000 units

= 0.065789

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3 years ago
The maximum price thar can be legally charged for a good or service is called what
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The maximum price that can be legally charged for a good or service is called the price ceiling. The government sets this limit to protect consumers from businesses setting items that are needed to live everyday life unattainable due to the price. 
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