Answer:
Explanation:
South Tel Communications is considering the purchase of a new software management system. The system is called B-image, and it is expected to drastically reduce the amount of time that company technicians spend installing new software. South Tel's technicians currently spend 6,000 hours per year on installation which cost South Tel $25 per hour. The owners of the B-image system claim that their software can reduce time on task by at least 25%. The system requires an initial investment of $55,000 and an additional investment of$10,000 for technician training on the new system. Annual upgrades will cost the firm $15,000 per year. Because the investment is comprised of software, it can be fully expensed in the year of the expenditure (no depreciation). South Tel faces a 30% tax rate and uses a 9% cost of capital to evaluate projects of this type.
A. Assuming that South Tel has sufficient taxable income from other projects so that it can immediately expense the cost of the software, what are the free cash flows for the project for years zero through five?
Total (65,000)
Cash flow year 1 - 5
Saving on installations per year 450,000
Less: Annual upgrades ( 15,000)
Total 435,000
Less: Tax (30%) (130,500);
Total project free cash flow 304,500.answer
Answer:
The correct answer is letter "D": All securities in an efficient market are zero net present value investments.
Explanation:
The Efficient Market Hypothesis (EMH) states that neither public or insider information cannot help in an attempt to beat the market because stocks already show all available information possible. Thus, neither using technical or fundamental analysis could be useful to predict future stock price movement.
<em>In other words, in a market under EMH all stocks are zero Net Present Value (present value inflows minus present value outflows) investment vehicles.</em>
Answer:
(A) The sampling distribution of the sample mean household income is approximately normal because the sample size of 100 is greater than 30.
Explanation:
Answer:
b. requires certain contracts to be in writing
Explanation:
Statute of Fraud is one that requires certain types of contracts to be in writing in order to be valid.
For example when selling goods the quantity and price of the goods must be stated in case of any future issue. The written contract can be referred to.
However there are some exceptions to statutes of fraud, and they are when there is admission, performance, or promissory estoppel.
Answer: The foreign corrupt practices act.
Explanation:
The foreign corrupt practices act is a law passed by the government of the United States of America, that promotes transparency in foreign business transactions and prohibits the use of bribes to influence foreign business transactions.
