Answer:
Better Business Bureau
Explanation:
The Better Business Bureau was founded to increase the trust of investors and other stakeholders in the profit making and non profit making organizations by fining and punishing the organization and its management involved in pursuing dishonest business practices. The organization investigates and carry on forensic audits to conclude whether or not the company was pursuing any dishonest business practices or not.
Based on the scenario, the most likely impact on these
trends on the profits of Green Restaurants is that there will be a lower cost present
by which this will likely lead their restaurant to gain and increase their
profits, having a higher profits.
Answer:
which one of two machines to acquire given equal machine lives but unequal machine costs.
Explanation:
equivalent annual cost (EAC) is used in determining which investment to make when the investments have different life spans.
When investments have different life spans, the net present value(NPV) cannot be used in making decisions on investment.
EAC= 
where r = interest rate
n = number of years
The decision rule is to invest in the investment with the higher EAC
Answer:
c. Exchange creates value by moving goods from parties who value them less to parties who value them more.
Explanation:
Exchange is described as the process of changing some goods for some other goods.
Exchange clearly provides you with the goods you value for, and in exchange for those goods you pay the goods you do not value.
This, results in adding value to the goods acquired by you, and adds value to the goods given by you for the person to whom it is exchanges.
As for example when a cloth is purchased by me for $100 then such adds the value to cloth and because it was worth less than $100 for the seller it has added value to the cloth.
Answer:
c. $386.7 million
Explanation:
The enterprise value of the firm is the present value of its future free cash flows discounted at the weighted average cost of capital as well as the present value of free cash flow terminal value beyond year 3 as shown thus:
Year 1 FCF=$10 million
Year 2 FCF=$20 million
Year 3 FCF=$30 million
terminal value=Year 3 FCF*(1+terminal growth rate)/(WACC-terminal growth rate)
terminal growth rate=2%
WACC=9%
terminal value=$30*(1+2%)/(9%-2%)
terminal value=$437.14 million( $437.1 million is wrong as it is the terminal value, not the enterprise value)
present value of FCF=FCF/(1+WACC)^n
n is the year in which the free cash flow is expected, it is 1 for year 1 FCF, 2 for year 2 FCF , 3 for year 3 FCF as well as the terminal (the terminal value is also stated in year 3 terms)
enterprise value=$10/(1+9%)^1+$20/(1+9%)^2+$30/(1+9%)^3+$437.14 /(1+9%)^3
enterprise value= $386.7 milion
