Answer:
correct option is D) The vertical axis crossing point cannot be calculated since the cash inflows are in perpetuity
Explanation:
given data
hair salon spends = $1,000,000
increase cash flow = $220,000 per year
to find out
what dollar value should the NPV profile cross the vertical axis
solution
we know that discount rate is = 0 %
as sum of cash flow is infinite
because cash flow = $220000
cash flow is here perpetual
so we can say that correct option is D) The vertical axis crossing point cannot be calculated since the cash inflows are in perpetuity
Answer:
The efficient market hypothesis tells, in an equilibrium, the price of stocks or security is an unbiased estimate of the true values.
Explanation:
- Thus, in the equilibrium, of security prices are neither an overvalued nor are undervalued. Suppose the investors learn new information about the company that suggests there stock is worth more than the current price.
- The security gets undervalued expected return exceeds the required return. Increased in demand for security from the investors with this new information will thus bid up the market value plus reduce its expected return until they are equal.
Answer: $44,000
Explanation:
Equivalent units for materials in this scenario would be:
= Units completed and transferred out + Normal spoilage + Ending work in process
= 33,000 + 3,000 + 8,000
= $44,000
Answer:
Present value = $6404.20
Explanation:
Data provided in the question :
Amount of the Centennial lottery prize won = $1.4 million = $1,400,000
Time after which the amount will be received, n = 70 years
Discount rate, r = 8%
Now,
the present values is given as:

on substituting the respective values, we get

or
Present value = $6404.20
Dollars - currency exchange market
Shares -stock markets
Wheat-commodity market