1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
geniusboy [140]
3 years ago
5

You are the manager of a project that has an operating leverage rating of 2.8 and a required return of 14 percent. Due to the cu

rrent state of the economy, he expects sales to decrease by 7 percent next year. What change should you expect in operating cash flows next year given your sales forecast?
Business
1 answer:
slava [35]3 years ago
8 0

Answer:

The change should you expect in operating cash flows next year would be 19.60%

Explanation:

In order to calculate the change should you expect in operating cash flows next year given your sales forecast we would have to make the following calculation:

change should you expect in operating cash flows=operating leverage rating*percentage of decrease sales next year

change should you expect in operating cash flows=2.8*0.07

change should you expect in operating cash flows=19.60%

The change should you expect in operating cash flows next year would be 19.60%

You might be interested in
__ offers users an "Ask a Librarian" feature to inquire about the library's collections.
charle [14.2K]

Answer:

Library of Congress (LOC)

Explanation:

A library also known as a bookhouse can be defined as an institution having various collection of books and other informative materials that people can read to gain more knowledge, insight and motivation about a particular topic. An example of a library is the Library of Congress (LOC) located in Washington DC, United States of America.

Library of Congress (LOC) refers to the research library used by the Congress of the United States of America to provide or gain access to a diverse and rich source of knowledge (informations) about things, places, animals, plants, people, etc.

Basically, it comprises of millions of literary works such as manuscripts, books, photographs, maps, recordings, newspapers in its collection and as a result of this, it is known to be the largest library in the world.

The Library of Congress (LOC) offers users an "Ask a Librarian" feature to inquire about the library's collections. Therefore, users can easily make enquiries from a librarian on any thing they aren't clear about using the Library of Congress (LOC).

6 0
3 years ago
The valuation calculating the present value of a future cash flow to determine its value today is called __________ valuation.
nydimaria [60]

Answer:

Discounted cash flow(DCF).

Explanation:

This is explained to be an investment analysis model which is seen to calculate the value of investment on the basis of its future value. Thus evaluation model is seen to be discounted back to a present value in which time value of money is been used as a factor and is been put into consideration. It is also explained that investment’s worth is equal to the present value of all projected future cash flows. Cases directs us to see that boards are seen to subtract the amount spent on the investment from the present value of future cash flows to calculate the net present value of the investment. Therefore, they can easily sum how much the investment will make in today’s dollars and compare it with the cost of the investment.

3 0
3 years ago
Phoenix Agency leases office space for $7,700 per month. On January 3, Phoenix incurs $105,600 to improve the leased office spac
nadezda [96]

Answer:

$13,200 per year

Explanation:

Amount incurred to improve the office space = $

Improvement expected to yield benefit = 10 years

Remaining life on it's lease = 8 years

Since the office space is not going to remain with Phoenix after the lease period, it means that the improvement expenses will be expensed over the remaining lease period I.e 8 years.

Therefore, the amount of expense that should be recorded the first year related to improvements can be calculated as;

= Amount incurred to improve the office space ÷ remaining life on its lease

= $105,600 ÷ 8

= $13,200 per year

7 0
3 years ago
Suppose France can produce four phones or three computers with one unit of labor, and Sweden can produce one phone or two comput
lesya [120]

Answer:

Option (a) is correct.

Explanation:

France can produce four phones or three computers:

Opportunity cost of producing one phone = (3 ÷ 4)

                                                                      = 0.75 computers

Opportunity cost of producing one computer = (4 ÷ 3)

                                                                      = 1.33 phones

Sweden can produce one phone or two computers:

Opportunity cost of producing one phone = (2 ÷ 1)

                                                                      = 2 computers

Opportunity cost of producing one computer = (1 ÷ 2)

                                                                      = 0.5 phones

Therefore,

France has a comparative advantage in producing phones because of the lower opportunity cost of producing it than Sweden. France should specialize in producing phones and import computers from Sweden.

Sweden has a comparative advantage in producing computers because of the lower opportunity cost of producing it than France. Sweden should specialize in producing computers and import phones from France.

5 0
3 years ago
Alex, who is single, conducts an activity in 2021 that is appropriately classified as a hobby. The activity produces the followi
Nataliya [291]

Alex, who is single, conducts an activity in 2021 that is appropriately classified as a hobby.  The amount of income that Alex must report and the amount of the expenses he is permitted to deduct are:

  • Income $18,000
  • Expenses $3,000

An activity or business  is classified as hobby :

  • The owner of the business is not making profit from the business
  • When their is no proof as to whether the business owner is making profit
  • When the owner does not intend to make profit from the business etc

Based on the given information the revenues or income amount of $18,000 will be the  amount that will be reported by Alex  as part of the gross income.

While the expenses or  property taxed amount of $3,000 is deductible because the deductions are itemized deductions.

Inconclusion Alex, who is single, conducts an activity in 2021 that is appropriately classified as a hobby.  The amount of income that Alex must report and the amount of the expenses he is permitted to deduct are:

  • Income $18,000
  • Expenses $3,000

Learn more here:

brainly.com/question/16633416

3 0
2 years ago
Other questions:
  • Handwritten wills are also known as which of the following?
    11·2 answers
  • A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third yea
    7·1 answer
  • Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2017.
    5·1 answer
  • A company developed the following per unit materials standards for its product: 3 pounds of direct materials at $5 per pound. If
    5·1 answer
  • A problem is listed below. Identify its type. Ted owns a small florist shop. Since his business is booming, his realizes he will
    9·1 answer
  • What is a product item?
    6·1 answer
  • Each month a company can rent capital for $7.500 per unit and can hire workers for $2.500 each Currently me company is using 4 u
    11·1 answer
  • Skaredykat Inc. is considering initial expansion beyond its home market. The firm has decided not to enter markets that differ g
    13·1 answer
  • A factory machine was purchased for $216000 on January 1, 2022. It was estimated that it would have a $40000 salvage value at th
    10·1 answer
  • As environmental uncertainties increase, managers must develop techniques and methods for collecting, sorting through, and inter
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!