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umka2103 [35]
3 years ago
5

Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,200, $10,200, and

$16,400 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 14 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.
Business
1 answer:
ddd [48]3 years ago
7 0

Answer:

= $23,479.51

Explanation:

<em>The value of the investment is the sum of the present value of the future cash flows discounted at 14%.</em>

<em>                                                PV</em>

Year 1     5,200× 1.14^(-1) =  4,561.40

Year 2    10,200 × 1.14^(-2) =  7,848.57

Year 3    16,400 ×  1.14^(-3) =  11,069.53

Total amount willing to be paid

= 4,561.40 + 7,848.57 + 11,069.53

= $23,479.51

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When the dollar appreciates relative to foreign currencies, it means that:?
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<span>When the dollar appreciates relative to foreign currency means that the exchange rate will favor the dollar and cause a decrease in the the price of imported goods. It also means that travel abroad from the U.S. to the relative countries will increase due to lowered costs.</span>
6 0
3 years ago
The use of accelerated depreciation:____.a. discourages investment in plant and equipment. b. increases expenses and decreases c
Elena-2011 [213]

Answer:

c. initially decreases the firm's taxes

Explanation:

Accelerated depreciation provides for a higher rate of capital allowance on the assets that is New and Unused and brought in the business for use in manufacturing for the first time. This allowance then lowers for the other years. The purpose of this is to encourage  investment in plant and equipment as it initially decreases the firm's taxes.

8 0
3 years ago
This outcome of an expansionary period would be considered negative for those living on a
Ket [755]

Answer:

fixed income

Explanation:

During the expansion business cycle, economic activities are on the increase. Key economic indicators such as employment, incomes, business earnings, demand, and supply of goods and services show positive and progressive numbers. During expansion, the GDP growth rate is healthy, and the level of investment is high.

The expansion phase brings along inflationary pressure. At the peak or near the end of the expansion cycle, the inflation rate is always above the optimal level and sometimes in double digits.  A high rate of inflation weakens the purchases power of the local currency. Employees on a fixed income will be disadvantaged. Their income will afford them fewer goods and services compared to the period before expansion.

3 0
3 years ago
Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, wha
Korvikt [17]

Answer:

1,030

Explanation:

Calculation for what is the exponential smoothing forecast value

Exponential smoothing forecast value = 1,000 + 0.3 x (1,100-1,000)

Exponential smoothing forecast value = 1,000 + 0.3 x (100)

Exponential smoothing forecast value = 1,000 + 30

Exponential smoothing forecast value= 1,030

Therefore the exponential smoothing forecast value will be 1,030

5 0
3 years ago
A stadium charges $15 to park in the stadium parking lot, and $10 to park in the satellite lot. If the stadium wants to make $30
Lady bird [3.3K]

Answer:

12,000

Explanation:

The aggregate amount of revenue of the stadium is $300,000 from which they have $180,000 from the stadium parking lot which has 12,000 cars inside it. So, it is $12,000 × $15 is equal to $180,000.

So, remaining will be

= $300,000 - $180,000

= $120,000

This amount needed for attaining the revenue.

So, from satellite, they revenue of $120,000. So, the number required to make it this amount is computed as:

= $120,000 / Rate of parking

= $120,000 / $10

= 12,000

5 0
4 years ago
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