To me they should always see if it is real money they are getting before they give them the item.
Answer:
PV= $10,030.27
Explanation:
Giving the following information:
Cash flow= $2,500
Lump sum= $4,000
i= 9%
n= 5
<u>First, we need to calculate the future value of the cash flows:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {2,500*[(1.09^4) - 1]} / 0.09
FV= 11,432.82
<u>Now, the total future value:</u>
FV= 11,432.82 + 4,000= 15,432.82
<u>Finally, the present value:</u>
PV= FV/(1+i)^n
PV= 15,432.82/1.09^5
PV= $10,030.27
Answer:II. exclude interest expense.
III. include the depreciation tax shield related to the project.
Explanation: pro forma free cash flow is a term used to estimate the amount of inflows(revenue/income) or outflows (expenses) expected to be made in future projects and engagements of a business entity. It helps the business to plan appropriately to forestall any eventualities.
Pro forma free cash flows should exclude interest rate in its estimation and it should also include the depreciation tax shield related to the project.
Answer:
Margin of safety = 2,000 units
Explanation:
Margin of Safety =Total units sold-Break-even point
where Total units sold = 
=14,000 units
Break even point = 
The contribution per unit can be deduced from the contribution margin ratio as follows:
Contribution margin ratio=
=40%
this implies that Contribution Margin=40%*Sales
Given a selling price of $16/unit, contribution per unit = 0.4*$16=$6.40
therefore :
Break even point = 
=12,000 Units
Margin of Safety =Total units sold-Breakeven point= 14,000 units -12,000 units = 2,000 units
Answer:
there is no difference between ppl, ppl are beautiful from the inside
