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ikadub [295]
3 years ago
5

The following amounts were taken from a company's balance sheet:

Business
1 answer:
liberstina [14]3 years ago
7 0

Answer:

Option a (5000) is the appropriate answer.

Explanation:

Given values are:

Current assets,

= $10,000

Current liabilities,

= $5,000

Now,

The working capital will be:

= Current \ assets-Current \ liabilities

By substituting the values, we get

= 10000-5000

= 5000

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You are offered a chance to buy an asset for $7,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000
Amanda [17]

Answer:

6.14%

Explanation:

The rate of return for the date given in the question for the asset shall be determined through calculating Internal rate of return on this asset, which shall be calculated as  follows:

Year          Cash flow               Present [email protected]%     Present [email protected]%

0               ($7,250)                  ($7,250)                      ($7,250)

1                 $750                       $714.29                      $681.82

2                $1,000                    $907.03                     $826.45

3                $850                       $734.26                     $638.62

4                 $6,250                    $5,141.89                   $4,268.83

                                                   $247.7                       ($834.28)

IRR=A%+[a/(a-b)*(B%-A%)]

A%=5%, a=$247.7 B%=10%  b=(834.28)

IRR=5%+[247.7/(247.7+834.28)*(10%-5%)]

IRR=6.14%

4 0
3 years ago
You just won the grand prize in a national writing contest! As your prize, you will receive $1,000 a month for 15 years. If you
skelet666 [1.2K]

Answer:

The prize is worth $111,258.73.

Explanation:

Giving the following information:

Cf= $1,000 a month

Interest rate= 0.07/12= 0.005833

Number of months= 15*12= 180

First, we need to calculate the final value:

FV= {A*[(1+i)^n-1]}/i

A= cash flow

FV= {1,000*[(1.005833^180) - 1]} / 0.005833

FV= $316,951.28

Now, the present value:

PV= FV/(1+i)^n

PV= 316,951.28/(1.005833^180)

PV= $111,258.73

6 0
3 years ago
If you take out a loan, which two things do your loan payments go toward?
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From the consumer’s perspective, the elements of an imc strategy can be viewed as being either.
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Integrated marketing communications is the technique by which a company provides different promotional methods within a marketing campaign are clear, constant and working toward the same goal.

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Which of the following is an example of an intergovernmental organization?
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C the world bank

Explanation:

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