Answer:
Option D) The company's depreciation and amortization expenses declined
Explanation:
When Aubey Aircraft´s depreciation and amortization decrease, it has less cost of sales and an improvement in the Gross Margin, hence, in the Net Income, but this enhancement in the Net Income has an opposite effect on Net Cash Flow because less depreciation and amortization means less Net Cash Flow,
Net Cash Flow it's defined by Net Income plus depreciation and amortization, a less Depreciation means less Net Cash Flow.
Answer:
Bond Price = $877.3835955 rounded off to $877.380
Explanation:
To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and r or YTM will be,
Coupon Payment (C) = 0.064 * 1000 = $64
Total periods (n)= 25
r or YTM = 7.5% or 0.075
The formula to calculate the price of the bonds today is attached.
Bond Price = 64 * [( 1 - (1+0.075)^-25) / 0.075] + 1000 / (1+0.075)^25
Bond Price = $877.3835955 rounded off to $877.380
An insurance policy with a higher premium most likely has a lower deductible
Answer:
The correct answer is B: The investment has a future value of $8,053
Explanation:
Giving the following information:
A lump sum of $5,000 is invested at 10% per year for five years. The company's cost of capital is 8%.
We need to calculate the final value of the investment. We will use the following formula:
FV= PV*(1+i)^n
FV= 5,000*1.10^5= $8,052.55