Answer:
Explanation:
In order to find the highest amount david can pay or in other words the present value of the investment we would have to discount the cash flows
3000/1.08+3000/1.08^2+3000/1.08^3+3000/1.08^4+3000/1.08^5=11,978
The last one would most likely be it
Answer:
1.5
Explanation:
Current ratio = current asset/current liabilities
This ratio is used to determine how quickly the current assets can be used to settle the current liabilities as they fall due.
current assets = $120,000
current liabilities = $80,000
The firm's current ratio = $120,000/$80,000
= 1.5
So in this case, you would need to find the present value (PV) of the monthly payments. With the information given, you would have a PV= 195,413.08, which is less than the lump sum payment. In this case, you would take the 1 time payment.
Another way to look at this is to calculate the future value (FV) of both payouts. For the lump sum payment, you would assume the same interest rate (6%) and at the end of the same 20 years period, your investment would be worth 662,040.90 while the monthly payment option would be worth 646,857.25
Answer:
The correct answer is (c)
Explanation:
Business Corporation is a separate business entity that is controlled by elected group members know as the board of directors. They are responsible for business activities and they usually seek for long term profits. This separate entity is controlled by shareholders. Overall, they aim for a broader mission without maximising shareholders profit. Business corporations usually reinvest dividends and profits to improve and expand.
