Answer:
∑( Cash flow × PVF) = 79,347
Explanation:
Given:
Opportunity cost = 9%
Cash flow for 1-5 years = 10,000
Cash flow for 6-10 years = 16,000
Now,
Present value factor (PVF) =
here, n is the year
For year 1 to 5
Year Cash flow PVF Cash flow × PVF
1 10000 0.9174 9174
2 10000 0.8417 8417
3 10000 0.7722 7722
4 10000 0.7084 7084
5 10000 0.6499 6499
for years 6 to 10
Year Cash flow PVF Cash flow × PVF
6 16000 0.5963 9540.8
7 16000 0.547 8752
8 16000 0.5019 8030.4
9 16000 0.4604 7366.4
10 16000 0.4224 6758.4
========================================================
∑( Cash flow × PVF) = 79,347
========================================================
taking the PVF to 5 decimal places will make 79,347 ≈ 79,348
Answer:
Purple Panda Pharmaceuticals
Annual Free Cash Flow (FCF):
FCF = Sales Revenue - (Operating costs + Taxes) - Required investments in operating capital or net operating profit after taxes - net investment in operating capital =
Net Income = $1,400,000
additional NOWC = 35,000
Capital expenditures = 500,000
FCF = $865,000
Explanation:
a) Data and Calculations:
EBIT = $2,000,000
Tax = 30% or $600,000
Net Income = $1,400,000
additional NOWC = 35,000
Capital expenditures = 500,000
FCF = $865,000
Purple Panda Pharmaceuticals' Free Cash Flow shows what is available for distribution to security holders after the payment of taxes. Purple Panda will use the information from its Free Cash Flow to judge if a project will pay off and generate enough cash flow so that shareholders' value will be enhanced.
Answer:
$3,220
Explanation:
reconciled cash balance = cash balance - bank service fees - NSF customer's check + note receivable collected by bank + interest earned
reconciled cash balance = $2,620 - $85 - $350 + $1,000 + $35 = $3,220
NSF checks drawn by customers should be subtracted because the company assumed that they were good checks so they increased cash account, but they bounced so no cash was collected.
Sometimes banks can collected notes receivables in the name of their clients (a previous agreement must be signed), and they increase the company's cash balance.
Answer: A person who owns and runs a business, which is normally a small business (eg. Shop Owner).
The sole trader has unlimited liability, meaning that his assets will be used in case of default to pay.