Answer:
OPTION C i.e 11%
Option A i.e 30.55 year
Explanation:
we know that capital can be calculated as
![Capital = EMI \times PVIFA](https://tex.z-dn.net/?f=Capital%20%3D%20EMI%20%5Ctimes%20PVIFA)
![capital = EMI \times \frac{(1+r))^n -1}{r (1+r)^n}](https://tex.z-dn.net/?f=capital%20%3D%20EMI%20%5Ctimes%20%5Cfrac%7B%281%2Br%29%29%5En%20-1%7D%7Br%20%281%2Br%29%5En%7D)
from the data given in question we can calculate the value of r
so
![5890.2 = 1250 \times \frac{(1+r))^7 -1}{r (1+r)^7}](https://tex.z-dn.net/?f=5890.2%20%3D%201250%20%5Ctimes%20%5Cfrac%7B%281%2Br%29%29%5E7%20-1%7D%7Br%20%281%2Br%29%5E7%7D)
![4.7122 = \frac{(1+r))^7 -1}{r (1+r)^7}](https://tex.z-dn.net/?f=4.7122%20%3D%20%5Cfrac%7B%281%2Br%29%29%5E7%20-1%7D%7Br%20%281%2Br%29%5E7%7D)
solving for r we get
r = 11%
option C
we know that
![Total\ saving = cash flow \times FVIFA](https://tex.z-dn.net/?f=Total%5C%20saving%20%20%3D%20%20cash%20flow%20%5Ctimes%20FVIFA)
![= Cash\ flow \times \frac{(1+r)^n -1}{r}](https://tex.z-dn.net/?f=%3D%20Cash%5C%20flow%20%5Ctimes%20%5Cfrac%7B%281%2Br%29%5En%20-1%7D%7Br%7D)
from the data given we can evealueate the value of n
![8,452,622 = 40,000 \times \frac{(1.11)^n -1}{0.11}](https://tex.z-dn.net/?f=8%2C452%2C622%20%3D%2040%2C000%20%5Ctimes%20%5Cfrac%7B%281.11%29%5En%20-1%7D%7B0.11%7D)
![\frac{8452622}{40000}\times 0.11 = (1.11)^n -1](https://tex.z-dn.net/?f=%5Cfrac%7B8452622%7D%7B40000%7D%5Ctimes%200.11%20%3D%20%281.11%29%5En%20-1)
solving for n we get
n = 30.55 year.
Option A
Answer:
c. investors see better long-term prospects for Amazon
Explanation:
As we know that Amazon has the more customer base in the market due to which the shareholder predicted the expected profit in upcoming years. The company could run in long run. Even the ompany suffered huge losses due to discount provided but the investors are ready to invest in this company as they seen there is a better and long term prospects
Therefore according to the given situation, the option c is correct
The four primary functions of managers are planning, organizing, leading, and controlling. By using the four functions, managers work to increase the efficiency and effectiveness of their employees, processes, projects, and organizations as a whole.
Answer:
A) Valuable assets such as the company's reputation, the quality of its work force, and the strength of its management are not captured on the balance sheet.
Explanation:
As we know that the balance sheet records the assets, liabilities and the equity of the company. Now the main problem with the balance sheet is that the valuable assets such as reputation of the company, work force quality, management strength would not captured here as it only records the monetary transactions.
Therefore the correct option is a.
Answer:
a. $70,500
b. $7,500
c. $9,000
Explanation:
a. The computation of the amount of revenue is shown below:-
Amount of revenue = Ending balance of accounts receivable + Cash collected - Beginning balance of accounts receivable
= $10,500 + $72,000 - $12,000
= $70,500
b. The computation of net income earned during the accounting period is shown below:-
Net income = Revenue generated - Expenses
= $70,500 - $63,000
= $7,500
c. The computation of amount of cash flow from operating activities is shown below:-
Net cash flow from operating activities = Cash collection - Amount paid for operating expenses
= $72,000 - $63,000
= $9,000