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3 years ago

Most investors will not give your company money unless you have what?

1 answer:

5 0

Unless you have a Business Plan.

Business plan contain your Objectives and step by step strategy that you will do in order to expand your Company.

Showing in front of investors without it make them questioned your commitment as a future Partner. To put it simply, you look like a careless & unmotivated person that is really bad for business

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Wildhorse, Inc., a resort management company, is refurbishing one of its hotels at a cost of $6,336,382. Management expects that

Xelga [282]

Answer and Explanation:

The computation of the IRR is shown below:

<u>Year Particulars Amount (in $) </u>

0 Initial cost -6,336,382

1 Year 1 cash inflows 1,460,000

2 Year 2 cash inflows 1,460,000

3 Year 3 cash inflows 1,460,000

4 year 4 cash inflows 1,460000

5 Year 5 cash inflows 1,460,000

6 Year 6 cash inflows 1,460,000

IRR 10.12%

Perform the IRR formula i.e.

= IRR() in excel

Now the net present value is

= Present value of cash inflows - initial investment

= ($1,460,000 × 4.1114) - $6,336,382

= $6,002,644 - $6,336,382

= -$333,738

The 4.1114 is the PVIFA factor of 6 years at 12%

hence, the Wildhorse should not go ahead with the project

5 0

3 years ago

Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $5,000 under each of the fol

Paraphin [41]

Solution :

Annual payment = $\$ 5000$

1. The rate of interest annually = 12%

Present value $=\$5000 \times \text{PVA of} \ \$1(12\%, 5)$

$=\$5000 \times 3.60478$

= $ 18,023.90

2. The rate of interest annually = 12%

Present value $=\$5000 \times \text{PVAD of} \ \$1(12\%, 5)$

$=\$5000 \times 4.03735$

= $ 20,186.75

3. The rate of interest annually = 12%

The rate of interest quarterly = 3%

Present value = $\$5000 \times \text{PV of} \ \$1(3\%, 4) + \$5000 \times \text{PV of} \ \$1(3\%, 8) +\$5000 \times \text{PV of} \ \$1(3\%, 12)$ $+\$5000 \times \text{PV of} \ \$1(3\%, 16) + \$5000 \times \text{PV of} \ \$1(3\%, 16)$

$= \$5000 \times 0.88849 + \$5000 \times 0.78941 + \$5000 \times 0.70138 + \$5000 \times 0.62317 + \$5000 \times 0.55368$ $=\$ 17,780.65$

4 0

3 years ago

On the statement of cash flows, the cash flows from operating activities section would include a. receipts from the issuance of

klio [65]

Answer:

c. payment for interest on short-term notes payable

Explanation:

Cash flow statement shows positive and negative cash flows that result from activities of a business. It is divided into 3 parts: cash flow from operating activities, cash flow from investing activities, cash flow from financing activities.

Cash flows form operations involves cash flows from regular business activities. A positive change in assets represents an outflow and a negative change in liability represents an inflow.

Items considered under operating activities include inventory, accounts receivable, accrued revenue, accounts payable, and tax liabilities.

Payment for interest on short-term notes payable is a account payable item, so it is included in cash flow from operations

8 0

3 years ago

My brothers name is dookie

igomit [66]

Answer:

Cool

Explanation:

7 0

3 years ago

Read 2 more answers

Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.

sertanlavr [38]

Answer:

$9.687

Explanation:

Given:

Year 3 dividend = $1.00

Year4&5 growth rate = 17%

Constant rate = 7%

Required return rate = 16%

Year 4 dividend wil be:

D4 = 1.00 * 1+growth rate

= 1.00 * (1+0.17)

= $1.17

Year 5 dividend=

D5 = $1.17 * (1+0.17)

= $1.3689

Value of stock after year 5 will be given as:

$\frac{D5 * (1+growth rate)}{required return - growth rate}$

$= \frac{1.3689*(1+0.07)}{0.16-0.07}$

= $16.2747

For the current value of stock, we have:

Cv= Fd* Pv of discounting factor

Where Cv = current value of stock

Fd = future dividend

Pv = Present value of discounting factor

Therefore,

$C_v = \frac{1.00}{1.16^3} + \frac{1.17}{1.16^4} + \frac{1.3689}{1.16^5} + \frac{16.2746}{1.16^5}$

=$9.6871382455

≈ $9.687

The value of stock today =

$9.687

8 0

3 years ago