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Lerok [7]
3 years ago
5

An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $6

00 at the end of Year 6. If other investments of equal risk earn 11% annually, what is its present value
Business
1 answer:
Allushta [10]3 years ago
3 0

Answer:

$874.90

Explanation:

we can calculate this using an excel spreadsheet or by hand:

cash flow 1       $100                           discount rate = 11%

cash flow 2      $100

cash flow 3      $100

cash flow 4      $200

cash flow 5      $300

cash flow 6      $600

by hand = ($100 / 1.11) + ($100 / 1.11²) + ($100 / 1.11³) + ($200 / 1.11⁴) + ($300 / 1.11⁵) + ($600 / 1.11⁶) = $90.09 + $81.16 + $73.12 + $131.75 + $178.04 + $320.74 = $874.90

using excel and the NPV function = $874.94

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Free cash flow (FCF) and net income (NI) differ in the following ways:
alexandr402 [8]

Answer:

c.  I, II, and III only

Explanation:

As we know that

Free cash flow = Earnings before Interest and Taxes ×  (1-Tax Rate) + Amortization and Depreciation expense - Change in Net Working Capital -Capital Expenditure

And, the Net income is determined after considering all cash and non cash expenses.

Therefore, I, II and III statements are considered

Hence, the option c is correct

6 0
2 years ago
All of the following are the types of term insurance depending on how the face amount changes during the policy term EXCEPT (Cho
grigory [225]

Answer:

1- Increasing

Explanation:

Term insurance is kind of a life insurance which during a specified term promises payment in case of death and when that specified term comes to an end it can be renewed (renewable term), terminated or made permanent. There are three types of term insurances.

- Renewable

- Decreasing

- Level

There is no such policy as Increasing under term insurances.

Under renewable term insurance the insurer can renew on a yearly basis without specifying specific term.

Under decreasing term insurance the insurer pays a fixed amount for the duration of the policy. The coverage of this life insurance policy declines at a predetermined rate over the life of the policy that's why the name decreasing.

Under Level term insurance the insurer also pays a fixed amount and policies under this insurance type cover a period, mostly between ten to thirty years.

6 0
3 years ago
Suppose society consists of four individuals: Andy, Bill, Carl, and David. Andy has $20,000 of income, Bill has $40,000 of incom
aliya0001 [1]

Answer:

Taking $1 from Carl and giving it to Andy would increase society's total utility.

Explanation:

Since Andy's income is less than other three people when a $1 taken from Carl would increase Andy's utility more than the loss in utility of Carl. Thats why total utility would increase.

4 0
3 years ago
Sanctions are a type of trade restriction that is ineffective in forcing change in other countries.
Nikolay [14]

<span>The answer to this question is False. Sanctions do not only rarely achieve their goal of forcing change in the targeted country, but they also tend to produce collateral economic damage in the nations that do apply them.</span>

3 0
3 years ago
Carlita began 2014 with a taxes payable account balance of $3,000. On December 31, 2014, its taxes payable account balance is $7
aleksandr82 [10.1K]

Answer:

$2,000

Explanation:

The computation of the amount pay to the tax authorities during the year is shown below;

Let us assume the accrued payment be $6,000

Let us assume the amount pay to the tax authorities be X

Beginning Taxes payable account balance + Accrued payment - X = Ending taxes payable account balance

$3,000 + $6,000 - X = $7,000

$9,000 - X = $7,000

So, the X is

= $9,000 - $7,000

= $2,000

hence, the amount pay to the tax authorities is $2,000

4 0
3 years ago
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