Answer:
NPV = $262,604.7
Explanation:
<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.
</em>
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
PV of annuity= 1 -(1+r)^(-n)/r × Annual cash flow
r- discount rate, n- number of years
PV of cashinflow = 133,000 × (1- 1.13^(-4))/0.13 =395,604.6863
NPV = 395,604.6863 - 133,000= 262,604.7
NPV = $262,604.7
Answer:
1. $33,400
2. $24,400
Explanation:
For computing the year-end balance in the allowance for uncollectible accounts first ,we have to compute the ending balance of accounts receivable which is shown below:
Ending balance of accounts receivable = Beginning balance + credit sales - customers’ accounts collected - write off amount
= $300,000 + $1,500,000 - $1,450,000 - $16,000
= $334,000
Now the year-end balance in the allowance for uncollectible accounts would be
= $334,000 × 10%
= $33,400
2. The computation of the bad debt expense is shown below:
= Year end balance of allowance for uncollectible accounts - beginning balance of allowance for uncollectible accounts + written off
= $33,400 - $25,000 + $16,000
= $24,400
Answer:
The use if the direct chain of command affords delegation of authority in an easily understandable way, such that needed decisions on actions are more quickly taken to save costs due to delay and lack of cohesion.
Direct chain of command affords employees to work in areas they are proficient with which builds improved competence and skill within the workforce
The chain of command organizational structure is a logical delegation of authority which facilitates collaborative efforts with internal and external bodies
Explanation:
Answer:
Yes, Stock A has higher dividend yield
Explanation:
given data
market risk premium = 6.0%
risk-free rate = 6.4%
A B
Beta 1.10 0.90
Constant growth rate 7 % 7%
to find out
does stock A has higher dividend yield than Stock B
solution
we get here Stock A rA = 6.4% + 1.1 × 6%
Stock A rA = 13.00%
and
Dividend yield of stock A = rA - g
Dividend yield of stock A = 13.00% - 7%
Dividend yield of stock A = 6%
and
for Stock B rB = 6.4%+ .9 × 6%
Stock B rB = 11.80%
and
Dividend yield of stock B = rA - g
Dividend yield of stock B = 11.80% - 7%
Dividend yield of stock B = 4.80%
so we can say Yes, Stock A has higher dividend yield
Answer:
B. liquidity surplus
Explanation:
The expected cash inflows and outflows of the bank can be summarized using the formula provided below:
Net inflow/(outflow)= incoming deposits-acceptable loan requests+ market borrowings-deposit withdrawals+loan repayments
incoming deposits=$55 million(inflow)
acceptable loan requests=$75 million(outflow)
money market borrowings=$35 million(inflow)
deposit withdrawals= $10 million(outflow)
loan repayment=$30 million(inflow)
Net inflow/(outflow)=$55 million-$75 million+$35 million-$10 million+$30 million
net inflow(outflow)=$35 million
The above net inflow of $35 million represents liquidity surplus