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solniwko [45]
3 years ago
6

When you are interpreting financial ratios, it is useful to compare a company's ratios to some form of standard. true?

Business
1 answer:
antiseptic1488 [7]3 years ago
5 0
The statement is true. A financial ratio or also known as the  accounting ratio is a relative size of two chose numerical esteems taken from a venture's monetary articulations. Regularly utilized as a part of bookkeeping, there are numerous standard proportions used to endeavor to assess the general monetary state of a partnership or other association.
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Which of the following investments would have the highest future value at the end of 10 years? Assume that the effective annual
LenaWriter [7]

Answer:

The investment that will have the highest future value is option b.

Explanation:

First lets suposse the effective annual rate is 10%  

a. Future value= $2,500  

c. First you must obtain the net present value of all cash flows with the formula attached, for example:  

NVP= ($250/(1+10%)^1)+($250/(1+10%^2)+($250/(1+10%^3)... and so on until year 10  

With the excel formula "NPV" you can calculate the net present value specifying the interest rate, the cash flows.  

The NPV= $1,536.14  

And then you calculate the future value of this answer with this formula:  

VF=VP(1+i)^n  

VF= $1,536.14*(1+10%)^10  

VF=$3,984.36  

b. If payments are due at the beginning of every year means that at year 0 you start with $250. You must calculate the NPV in this way  

NPV= $250+($250/(1+10%)^1)+ )+($250/(1+10%^2)+($250/(1+10%^3)... and so on until year 10  

NPV= $1,786,14

And then you calculate the future value of this answer:

VF= $1,786,14*(1+10%)^10  

VF=$4,632.79

d. First, you must convert the annual interest rate into semi-annually interest

10% Annually effective is 4,88% Semi-anually effective

NPV=$125+($125/(1+4,88%)^1)+ )+($125/(1+4,88%^2)+($125/(1+4,88%^3)... and so on until period 20

NPV=$1,698.75

And then you calculate the future value of this answer:

VF= $1,698 *(1+10%)^10  

VF=$4,405.37

The investment that will have the highest future value is option b.

3 0
3 years ago
Workplace communication can suffer when individuals
timofeeve [1]
Don't communicate and do stuff without considering what other people would want
5 0
3 years ago
A plant asset was purchased on January 1 for $140000 with an estimated salvage value of $20000 at the end of its useful life. Th
alukav5142 [94]

Answer:

useful life= 12 years

Explanation:

Giving the following information:

Purchase price= $140,000

Salvage value= $20,000

Annual depreciation= $10,000

<u>To calculate the useful life, we need to use the straight-line method formula:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

10,000= (140,00 - 20,000) / useful life

10,000useful life = 120,000

useful life= 120,000 / 10,000

useful life= 12 years

4 0
3 years ago
Joe Jones has put in place a new set of performance metrics for the Logistics Department at his firm. He is convinced that these
AnnZ [28]

Answer:

Motivating objective              

Explanation:

In simple words, motivating refers to encouraging others to perform a job or task efficiently. It is generally performed by the executive level of employees in the organisation. It is done by teaching others about the incentives and perks they will get by performing the job or by fearing them with punishment. Motivations can be seen as a behavioral charge in an individual to give their hundred percent while performing the assigned task.

4 0
3 years ago
The Smiths' purchased a residence for $75,000. They made a down payment of $15,000 and agreed to assume the seller's existing mo
777dan777 [17]

Answer:

Purchase money mortgage.

Explanation:

A purchase money mortgage is the loan that is given to the individual buying the property.

This loan is issued by the seller of the property as a part of the transaction made when selling the property. The interest rate that comes with this type of loan is high.

The buyers benefit from the purchase money mortgage due to the flexible requirements that is needed in collecting the loan while the sellers benefits from the high interest rates that is added to the loan.

5 0
3 years ago
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