Answer:
Net Present Value = $28756.79
Explanation:
First we need find the real rate of interest
Real rate of interest = (Nominal rate of interest - Inflation rate )
Real Rate of interest = (10.76% - 4%)
Real of Interest = 6.76%
Now using stream of cash flows and discount the at 6.76%
0 -12800 1.000
1 10000 0.937
2 10000 0.877
3 10000 0.822
4 10000 0.770
5 10000 0.721
Through multiplying discount value with cash flow we get the discounted value of cash flows.
0 -12800 x 1.000 = -12800
1 10000 x 0.937 = 9370
2 10000 x 0.877 = 8770
3 10000 x 0.822 = 8220
4 10000 x 0.770 = 7700
5 10000 x 0.721 = 7210
Adding the discounted cash flows we get the value of Net present value and that is equal to $28756.79
Answer:
Company HD pays less in taxes
Explanation:
In the case when the company HD and LD have the similar rate of tax, sales revenue, etc even both have favorable net incomes also the company Hd contains greater debt ratio due to which it has more interest expense so that means company hd would pay less taxes
Therefore the above represent the answer
and, this is the answer but the same is not provided in the given options
Answer:
d. All of the above are correct.
Explanation:
a. This tax causes the demand curve for fountain drinks to shift downward by $0.50 at each quantity.
b. The price paid by buyers is $0.30 per drink more than it was before the tax.
This is true as the difference between $0.50 and $0.20 is $0.30. The price paid by buyers is indeed $0.30 per drink more than it was before the tax.
c. Forty percent of the burden of the tax falls on the sellers.
This is true as $0.20 of $0.50 is 40% and this tax burden falls on the sellers.
The answer is “insurance policies”