Answer:
B. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.
C. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows.
Explanation:
A Perpetuity is a financial instrument that pays the holder forever or in perpetuity. For example, a bank paying you $800 per year for ever because you invested $40,000.
There are certain characteristics
Option B
The Perpetuity like most financial Securities has its value based on the underlying cashflows that it can accumulate. This means that it's value is based on the present value of it's future cashflow so the other the cash payments, the higher the present value.
Option C.
As the discounted cashflows in the nearer future will be discounted less by the discount rate as opposed to the cash flows further in future, the cashflows nearer to the present in time will contribute more to the Perpetuity than the cashflows further in time.
For example using that first example, $800 per year at a rate of 5% will be discounted to $762 in the first year but in year 10 will be discounted to $491.
Explanation:
9. credit and borrowing expanding
Change may address the distribution of products to your personelle through storefront locations or through online channels.
<h3>What is distribution channel?</h3>
Distribution channel simply refers to a chain of businesses or intermediaries through which the final buyer purchases a good or service.
However, some members of the distribution channel are as follows:
- Wholesalers
- Retailers
- Distributors
So therefore, change may address the distribution of products to your personelle through storefront locations or online channels.
Learn more about distribution channel:
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Answer:
Cash conversion cycle = 41.67
Operating Cycle = 86.03
Explanations:
Average Invetory = (10500 + 11500)/2 = 11,000.00
Average accounts receivable(AR) = (5500 + 5800)/2 = 5,650.00
Average Accounts payable (AP)= (7700 + 8100)/2 = 7,900.00
Credit Sales = 85,000.00
AR Turnover = 85000/5650 = 15.04
Days sales outstanding = 365/ 15.04 = 24.26
Cost of goods sold = 65,000.00
AP turnover = 65000/7900 = 8.23
Days payable outstanding = 365/8.23 = 44.36
Inventory turnover= 65000/11000 = 5.91
Days inventory O/S = 365/5.91 = 61.77
Cash conversion cycle = Days Inventory outstanding + days Sales o/S - Days Payable O/S = 61.77 + 24.26 - 44.36 = 41.67
Operating Cycle = Days' Sales of Inventory + Days Sales Outstanding 61.77 + 24.26 = 86.03
Answer: $220
Explanation:
The following information can be derived from the question:
PV = $200
INT = 0.1 or 10%
N = 1 (years)
To calculate the future value of this investment, we will use the formula:
FV = PV( 1 + i)^n
FV = $200(1 + 0.1)
FV = $200(1.1)
FV = $220
The future value of this investment would be $220.