Answer:
Present value is nothing but how much future sum of money worth today. It is one of the important concepts in finance and it is a basis for stock pricing, bond pricing, financial modeling, banking, and insurance, etc. Present value provides us with an estimated amount to be spent today to have an investment worth a certain amount of money at a specific point in the future. Present value is also called a discounted value. It is an indicator for investors that whatever money he will receive today can earn a return in the future. With the help of present value, method investors calculate the present value of a firm’s expected cash flow to decide if a stock is worth to invest today or not.
The formula for calculating PV is shown below
PV = CF/ (1+r)n
Here ‘CF’ is future cash flow, ‘r’ is a discounted rate of return and ‘n’ is the number of periods or year.
Example
Let’s say that you have been promised by someone that he will give you 10,000.00 Rs 5 year from today and interest rate is 8% so no we want to know what the present value of 10,000.00 Rs which you will receive in future so,
PV = 10,000/ (1+0.08)5
PV = 6805.83 (To the nearest Decimal)
So present-day value of Rs 10,000.00 is Rs 6805.83
Explanation:
Answer:
The equivalent units produced is 7320
Explanation:
To get the units produced in this period we ignore the beginning inventory, we just add new transferred out +ending inventory
- 7,000 units were transferred out
- Al the end , we have 800 at 40%= 320
Adding the 3 items
UP=7000+320=7320
<span>Mostly seven types of characteristics of information availability enable authorized users or persons or computer systems - to access information without interference, and to receive it in the required format. Well, Accuracy occurs when information is free from mistakes or errors and it has the value that the end user expects.</span>
The answer is C. Kind of characteristics your company values
