Answer:
A. long-term ability to generate sufficient cash to satisfy plant capacity needs, fuel growth, and to repay debt when due.
Explanation:
Solvency is defined as the long-term ability of a business the generate enough cash flow that will allow it to continue its operations and also to pay of its debt when due.
It is used as a measure of the financial health of the business.
A business with good solvency has a high probability of remaining in operation for the foreseeable future.
What is the difference between marginal values and average values? Marginal values show the additional benefit or cost from consuming an additional unit of a good, while average values are the benefit or cost per unit of a good. When finding the marginal value a marginal analysis is conducted to figure out at what value a person will receive another benefit from making another purchase or consumption of a good or service.
ank by signing a 60-day, 6% interest-bearing note with a face value of $27,000.
Dec. 31 Recorded an adjuO
Answer:
12%
Explanation:
initial investment $367,402
net cash flows 1 - 7 = $80,500
the IRR is the interest rate at which NPV = 0
we can calculate it by using Exhibit 13B-2 (present value of annuity in arrears)
$367,402 = $80,500 x present value of 7 year annuity in arrears
- present value of 7 year annuity in arrears at 14% = 4.288
- present value of 7 year annuity in arrears at 12% = 4.564
- present value of 7 year annuity in arrears at 8% = 5.206
with 14% ⇒ $80,500 x 4.288 = $345,184
with 12% ⇒ $80,500 x 4.564 = $367,402 CORRECT ANSWER
with 8% ⇒ $80,500 x 5.206 = $419,083
The answer in the space provided is 'coming from'. It is because the countries like China and India has government which has less over sight which enables them to transport goods from chemical manufacturers because of their government that are not that strict in terms of transporting goods to other countries compared to others countries that have more over sight and are more strict.
