Explanation:
All tenders should be submitted on the appropriate tender forms as issued by trasnet and as per instructions in the bid documentation
The main disadvantage of the valuation method is that the terminal value tends to dominate the total value in many cases.
In a free cash flow valuation, the intrinsic value equals present value of its free cash flow and thus, the net cash flow is left over for distribution to stockholders and debt-holders in each period.
- So, the disadvantage of the free cash flow valuation method is that the terminal value tends to dominate the total value in many cases.
Hence, the Option B is correct.
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Answer:
a) $101354
Explanation:
To calculate the future balance of the interest-earning account use following formula
FV = PV x ( 1 + r )^n
Where
FV = Future value = Balance of Interest-earning account after 3 years = ?
PV = present value = Amounr deposited in the account = $90,000
r = Periodic interest rate = 4% x 6/12 = 2%
n = Numbers of periods = Numbers of years x Compounding periods per year = 3 years x 2 periods per year = 6 periods
Placing values in the formula
FV = $90,000 x ( 1 + 2% )^6
FV = $101,354
Answer:
the breakeven quantity at current price is 500 units
Explanation:
The computation of the breakeven quantity at current price is shown below:
Breakeven point = Fixed cost ÷ (Price per unit - variable cost per unit)
= $100,000 ÷ ($600 - $400)
= 500 units
Hence, the breakeven quantity at current price is 500 units
We simply used the above formula so that the correct units could arrive
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