Answer:
c. $74,450
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor + salvage value - initial investment
where,
The Initial investment is $120,000
All yearly cash flows would be
= Annual net operating cash inflows × PVIFA for 6 years at 14%
= $50,000 × 3.8887
= $194,435
Refer to the PVIFA table
Now put these values to the above formula
So, the value would equal to
= $194,435 - $120,000
= $74,435 approx
From a company's viewpoint, the existence of an active, liquid, well-organized market in existing shares A. facilitates the raising of further capital in the secondary market.
<h3>What is a secondary market?</h3>
A secondary market is a securities market for the exchange of securities and assets among investors rather than with the issuing entities.
The types of secondary markets include:
- Over-The-Counter Markets
- Stock Exchanges
- Auction markets
- Dealer markets.
<h3>Answer Options:</h3>
A. facilitates the raising of further capital in the secondary market.
B. maintains the share price above the initial issue price.
C. encourages successful primary market issues.
D. is of little or no consequence.
Thus, from a company's viewpoint, the existence of an active, liquid, well-organized market in existing shares A. facilitates the raising of further capital in the secondary market.
Learn more about secondary markets at brainly.com/question/14484986
#SPJ12
Answer: Deferred
Explanation:
The deffered is one of the type of annuity that helps in making the various types of insurance related contracts for the purpose of long time savings.
A deferred annuity is one of the type of contract where they pay some amount of their profit to the owner on the regular basis and it also used by various types of investors for profit purpose.
According to the question, the deffered annuity is making the various types of periodic payments that helps in scheduling the annuity after one year. Therefore, Deferred is the correct answer.
