Answer:
The answer is below
Explanation:
EBIT is known as an accounting measure to determine the profit level of a firm. It is an acronym of Earnings Before Interest and Taxes.
EBIT is generally considered to be independent of financial leverage because EBIT is the result of a firm’s operating effectiveness.
This is true because, EBIT is based on the firm's level of sales and cost of operation, of which financial leverage has no effects on it.
However, with excessive debt levels, EBIT might be influenced by financial leverage.
This implies that even though the financial leverage of a firm has no direct influence on EBIT, in a situation whereby a firm is operating at huge deficits, every aspect of the film will be concerned. This will include staff, customers, investors, and operational activities, thereby affecting the firm's sales and cost of operation. As a result, this will ultimately affect the firm's EBIT.
Answer:
NPV is positive,the project should be accepted
Explanation:
In determining whether or not the project should be accepted ,we need to ascertain the Net Present value of the project which is present value of cash inflows of $13,000 for 35 years minus the initial investment of $125,374.60 committed today.
The annuity factor for 8% for 35 year horizon is 11.6546 using annuity table.
Present of cash inflow=cash inflow*annuity factor=$13,000*11.6546=$151,509.80
Net present value=$ 151,509.80-$125,374.60=$ 26,135.20
The investment has a positive NPV,hence should be accepted
Answer:
I would have to say A. Yes
Explanation:
If they have a stronger dollar that doesn't drop in value quickly then they can keep on accepting that currency reliably.
