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FinnZ [79.3K]
3 years ago
15

Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,700, $10,700, and

$16,900 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 11 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.?
a. $35,797.50
b. $33,300.00
c. $24,457.63
d. $26,176.63
e. $27,560.91
Business
1 answer:
vovikov84 [41]3 years ago
7 0

Answer:

Total PV= $26,176.63

Explanation:

Giving the following information:

Cash flow:

Cf1= $5,700

Cf2= $10,700

Cf3= $16,900

<u>To calculate the price of the investment now, we need to use the following formula on each cash flow:</u>

PV= Cf / (1+i)^n

PV1= 5,700/1.11= 5,135.14

PV2= 10,700/1.11^2= 8,684.36

PV3= 16,900/1.11^3= 12,357.13

Total PV= $26,176.63

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What rate of output is appropriate for a nonprofit corporation (such as a hospital)?
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Answer and Explanation:

Nonprofit organizations are not stressed over boosting benefit and rather need to expand yield. On account of a clinic this yield is patients who get more advantageous or on account of a college it is understudies who graduate that the nonprofit organizations need to increment. Simultaneously. they need to take care of the expenses of work and capital that go into keep their foundations running. This implies the pace of yield at which nonprofit organizations need to deliver ought to be when normal all out cost rises to the market cost with the goal that their benefits would be zero.

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Sladkaya [172]

Answer:

False

The diamond-water paradox is illustrated by stating that the marginal benefit of the services provided by doctors and nurses is relatively lower than the marginal benefit of the services provided by major film stars.  This implies that the supply of doctors and nurses is larger than the demand while the demand for major film stars is larger than the supply.

Explanation:

The marginal utility derived by film consumers from major film stars is higher than the marginal utility derived by patients from doctors and nurses. This is because consumers of the services of major film stars are willing to pay more for the services than consumers of the services of doctors and nurses. Though health is more crucial to life than films, but consumers place more utility value on films than they do on their health, especially after attaining the basic sound health. This actually explains the diamond water paradox, where consumers value diamond and are willing to pay more for diamond than they are willing to pay for life-sustaining water. In a layman's language, people are more willing to value the satisfaction they derive from one more additional film than they are to value the satisfaction they derive from additional healthcare. That means that people only care for the basic in healthcare. But, they can stake more to acquire more diamond.

8 0
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E-Flix rents DVDs that are mailed out to customers upon demand. E-Flix has identified three activities involved in getting the v
bulgar [2K]

Answer:

b. $1.87

Explanation:

Number of order taking costs = $20,592

Number of orders = 187,200

Cost of activity

= $20,592 ÷ 187,200

= $0.11

The Statement of overhead allocated is given below:-

Number of orders = 17

Cost per activity = $0.11

Cost

= 17 × $0.11

= $1.87

Therefore, the overhead is applied to the Tucker family account for order taking costs $1.87

8 0
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Answer:

When something is vague, it is not being specific but when something is ambiguous, it has multiple meanings and so can be open to interpretation.

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Middle class is non specific because it is used as a blanket term for people or things not in either first or lower class. It also has multiple meanings.

b. Odd number ⇒ NEITHER

c. Gold ⇒ AMBIGUOUS

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d. Bank ⇒ AMBIGUOUS

Bank also has different meanings. It could be a financial institution, land next to water or even a repository for blood.

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8 0
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Use the following Year 3 data: Other Selling and Administrative Expenses $ 1,052,000 Other Expenses 249,300 Sales Revenue 4,887,
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Answer:

$222,450

Explanation:

Computation of annual income statement for Kvass Inc. is shown below

Sales revenue

$4,887,000

Less:

Selling and admn expenses

($1,052,000)

Other expenses

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($2,527,800)

Income tax expenses

($167,350)

Interest expense

($114,750)

Net income

$222,450

8 0
3 years ago
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