Answer:
a. $ 82, 063
b. - $ 19,206
c. 11.24%
Explanation:
Net Present Value is calculated by taking the Present Day (Discounted) value of all future Net Cash flows based on the company`s Cost of Capital and subtracting the Initial Cost of the Investment.
<em>Using a Financial Calculation</em>
a.
Cash flow Amount
Cf0 = ($665,000)
Cf1 = $130,000
Cf2 = $130,000
Cf3 = $130,000
Cf4 = $130,000
Cf5 = $130,000
Cf6 = $130,000
Cf7 = $130,000
Cf8 = $130,000
i = 8%
NPV = $ 82, 063
b.
Cash flow Amount
Cf0 = ($665,000)
Cf1 = $130,000
Cf2 = $130,000
Cf3 = $130,000
Cf4 = $130,000
Cf5 = $130,000
Cf6 = $130,000
Cf7 = $130,000
Cf8 = $130,000
i = 12%
NPV = - $ 19,206
c.
Internal Rate of Return = P + ((N-P)×p/(p+n))
= 8% + ((12%-8%)×$ 82, 063/($ 82, 063+ $ 19,206))
= 11.24%
Answer:
Indenture
Deferred call provision
Explanation:
Indenture is defined as the contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds.
A call provision is defined as the right that the issuer of a security has to call or redeem the security at certain times and under specific conditions.
The call provision in which the issuer is prevented from calling a portion or the entire issue for several years during the early years of the bond issue is called deferred call provision.
Answer:
$844,000
Explanation:
Given that,
Accounts Receivable = $900,000
Credit balance of Allowance for Doubtful Accounts per books before adjustment = $50,000
Expected amount of uncollectible = $56,000
Bad debt expense at the end of the period is determined by subtracting the credit balance of allowance for doubtful accounts from the expected amount of uncollectible.
Bad debt expense:
= Expected amount of uncollectible - Credit balance
= $56,000 - $50,000
= $6,000
At the end of the period, the allowance for doubtful accounts has a balance of $56,000 that are to be uncollectible.
The cash realizable value of the accounts receivable at December 31, after adjustment, is determined by simply subtracting the Allowance for doubtful accounts from the accounts receivable. It is calculated as follows:
= Accounts Receivable - Allowance for doubtful accounts
= $900,000 - $56,000
= $844,000
Answer: c. preventing a market that would generate mutually beneficial trades.
Explanation:
Zooey could argue that the policy of lunch trades is preventing a market that would generate mutually beneficial trades because if people were allowed to trade what they want for what they have with people who have what the first person wants and wants what the first person has, that can be beneficial to both of them.
It is not unlike the system of batter trading that existed before money where people traded what they had for what they wanted.
One should be very careful here though because there are multiple disadvantages involved such as kids exchanging away more nutritious food and food poisoning.
Financial managers should strive to maximize the current value per share of the existing stock to represent the interests of the current shareholders.
<h3>What is the functions of the Financial managers?</h3>
Financial managers can be described as the type of managers that are responsible for the financial health of an organization.
They help in the creation of the financial reports as well as directing investment activities, and develop plans , hence Financial managers should strive to maximize the current value per share of the existing stock to represent the interests of the current shareholders.
Learn more on Financial managers at:
brainly.com/question/1279044
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