To recruit new executive and professional, company should mainly depend on____

If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and r

Alex787 [66]

Answer:

there are no cash flows given, so I will use another question as an example:

NCF year 0 = -$1,150,000

NCF year 1 = $275,000

NCF year 2 = $275,000

NCF year 3 = $275,000

NCF year 4 = $275,000

NCF year 5 = $275,000

NCF year 6 = $275,000

NCF year 7 = $275,000

a) when cash flows are the same for all the years, you can use an ordinary annuity factor:

PV = $275,000 x 4.86842 (PV annuity factor, 10%, 7 periods) = $1,338,815.50

NPV = -$1,150,000 + $1,338,815.50 = $188,815.50

b) PV = $275,000 x 3.81153 (PV annuity factor, 18%, 7 periods) = $1,048,170.75

NPV = -$1,150,000 + $1,048,170.75 = -$101,829.25

c) PV = $275,000 x 3.24232 (PV annuity factor, 18%, 7 periods) = $891,638

NPV = -$1,150,000 + $891,638 = -$258,362

If the cash flows are different, then you must discount each cash flow individually.

E.g. NCF year 0 = -$150,000

NCF year 1 = $75,000

NCF year 2 = $85,000

NCF year 3 = $95,000

NPV = -$150,000 + $75,000/1.1 + $85,000/1.1² + $95,000/1.1³ = $59,804.66

5 0

3 years ago

Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own;

valentinak56 [21]

A)Degree of operating leverage=Contribution/EBIT

=6400,000/2140000=2.99.

B) Degree of operating leverage=Contribution/EBIT

=5600,000/1340000=4.18

C) Degree of operating leverage=Contribution/EBIT

=7600,000/1015000=7.49

One conclusion that companies can draw from examining operational leverage is that companies that minimize fixed costs can increase profits without changing selling prices, contribution margins, or unit sales.

The Operating Leverage formula is used to calculate a company's break-even point, helping to set a reasonable selling price that covers all costs and produces a profit. This gives you insight into how well your company is using fixed-cost items such as inventory and machinery to make a profit. The more profit a company can extract from the same amount of fixed assets, the higher its operational leverage.

Learn more about operating leverage at

brainly.com/question/24278932

#SPJ4

4 0

2 years ago

Which skill is considered the cornerstone of effective communication?

Aleks [24]

Based on communication strategy, the skill that is considered the cornerstone of effective communication is known as "<u>Listening</u>."

This is because effective listening forms the foundation of effective communication.

With effective listening, a recipient or responder would make the proper reply or response to the sender.

Without proper listening, arguments may arise in the communication process, or difficulty in understanding may occur among parties to a specific communication process.

Hence, in this case, it is concluded that the correct answer is "<u>Listening</u>."

Learn more here: brainly.com/question/19511035

5 0

3 years ago

An accounting worker who processes routine details about accounting transactions

klio [65]

Accounting clerkAn accounting worker who processes routine details about accounting transactions.hope this helps

7 0

3 years ago

Why has globalization resulted in increasing environmental damage around the world?

Lubov Fominskaja [6]

Those who support this bleak view of globalization argue it creates global competition, resulting in a boost in economic activities that deplete the environment and its natural resources. The increased economic activity leads to greater emissions of industrial pollutants and more environmental degradation.

6 0

3 years ago

To recruit new executive and professional, company should mainly depend on_____ *