Answer: $0.70
Explanation:
The value of the option to wait would be calculated thus:
Year Cash flow PVF at 12% PV
0 $-480 1.000 $(480.00)
1 $350 0.893 $312.50
2 $350 0.797 $279.02
3 $350 0.712 $249.12
Then, the Net present value will be:
= 312.50 + 279.02 + 249.12 - 480.00
= $360.64
Year Cash flow PVF at 12%. PV
0 $-1.000 1.000. 0
1 $-520 0.893 $(464.29)
2 $385 0.797 $306.92
3 $385 0.712 $274.04
4 $385 0.636 $244.67
Net present value = $361.34
The value of the option to wait would then be calculated as:
= $361.34 - $360.64
= $0.70
Answer:
Explanation:
its going to be a in Its own words with desription of the customers's cuurent condition
Answer:
c. $26,000.
Explanation:
The computation of the actual reserve is as follows:
Actual reserve is
= Reserve requirement + excess reserve
= $80,000 × 20% + $10,000
= $16,000 + $10,000
= $26,000
hence, the actual reserve is $26,000
Therefore the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
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