The correct answer is
"A great deal often just happens by accident"
Great deals require searching and planning.
Answer:
D
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Flying Car
Cash flow in year 0 = -$200,000
Cash flow in year 1 = 50,000
Cash flow in year 2 = 50,000
Cash flow in year 3 =80,000
Cash flow in year 4 =100,000
IRR = 13%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Answer:
(C) 18,844.47
Explanation:
You need to use the Inflation-Adjusted Return formula:
So, basically you need to calculate it year by year. You can use excel, or an online calculator. I will attached you a link where you can find a good one. But this would be the process
And so on...
Keep in mind that I did not write all decimals. You need to consider them if you want an exact answer
Online calculator:
https://www.ameriprise.com/research-market-insights/financial-calculators/savings-taxes-inflation/
Answer: a. Increase in financing activities for the issuance and a decrease in financing activities for the dividends.
Explanation:
When using the Indirect method of the Cash Flow Statement, you will find 3 sections namely, the Operating Activities, Investing Activities and Financing Activities.
The Operating Activities deal with the normal business Transactions and related entries that keep the business running.
Investing Activities have to do with entries related to Non Current Assets as well as stocks and bonds in other companies.
The above relates to the Financing Section that handles the raising of Capital needed to run the business. They include long term debt and Equity.
When new Equity is announced it is a Cash inflow for the business meaning that there will be an INCREASE in Financing Activities.
Dividends have the effect of reducing Equity so it is a Cash Outflow. This means that there will be a DECREASE in Financing Activities as a result of the declared Dividends.
Answer:
100 shirts
Explanation:
Borrowing from the contribution margin concept, the level where the marginal benefit is greater than total costs is the break-even point.
Break-even point = fixed cost / contribution margin per unit.
For this retailer,
Fixed costs are $500,
The contribution margin per unit = selling price- variable cost
=$10-$5
=$5
Break-even point
= $500/$5
= 100units
