Answer:
B. -21.85%.
Explanation:
Calculation for the annual return on the stock
First step is to calculate the Number of periods
Number of periods = 2 * 365 days in a year
Number of periods= 730
Second Step is to calculate the Daily return using this formula
Daily return = (Future value / initial value)^1/n - 1
Let plug in the formula
Daily return = (26.85 / 41.57)^1/730 - 1
Daily return = (0.645898)^1/730 - 1
Daily return = 0.999401 - 1
Daily return = -0.00059861*100
Daily return = -0.059861%
Last step is to calculate annual return
Using this formula
Annual return=Daily return/ Numbers of days in a year
Annual return = -0.059861% * 365
Annual return = -21.85%
Therefore the annual return on the stock if returns are compounded daily will be 21.85%
Answer:
Net present value of this project is $282470.22
Explanation:
Present value of inflows = Cash Inflow * Present value of discounting factor(rate%,time period)
=900,000/1.08+900,000/1.08^2+900,000/1.08^3+900,000/1.08^4+900,000/1.08^5+900,000/1.08^6+900,000/1.08^7+900,000/1.08^8+900,000/1.08^9+900,000/1.08^10+900,000/1.08^11+900,000/1.08^12
=6782470.22
NPV=Present value of inflows-Present value of outflows
=6782470.22-6,500,000
=$282470.22
Answer:
Explanation:
Ethics demands reasons to be given for changing from one depreciation method to another. There are three depreciation methods that are applicable including double-declining balance technique, unit of production technique, and straight-line technique.
Changing from one depreciation method to another must be done in the best interests of shareholders and reasons for such a change must be disclosed. Therefore, ethics requires a company to reveal the changes in depreciation method and adhere to the accounting principles related to the method used.
Answer:
Incremental cash flow= $1,369.863~ $1,370
Explanation:
In accrual accounting, accounts receivable gives a measure of revenue that a business has earned.
Given the annual revenue as $25,000. To get the daily revenue
Daily revenue= Annual revenue/ 365
Daily revenue= 25,000/365
Daily revenue= $68.493
Customers are expected to pay within 20 days, so for every 20 days
Incremental cash flow= 20 days* 68.493
Incremental cash flow= $1,369.863~ $1,370
