Frontier Corp. sells units for $57, has unit variable costs of $29, and fixed costs of $164,000. If Frontier sells 10,000 units,
1 answer:
You might be interested in
T-1:
Table-1 vide annex
Applying EAC formula
c = \frac{r(NPV)}{(1-(1+r)^{-n} )}
c: equivalent annuity cash flow
NPV: Net present value
r: rate per period
n: number of periods
we have
c = $ - 98 982,63
T-2
Table-2 vide annex
Applying EAC formula
c = \frac{r(NPV)}{(1-(1+r)^{-n} )}
c: equivalent annuity cash flow
NPV: Net present value
r: rate per period
n: number of periods
we have
c = - $ 97 511.17
Answer:
The continuous growth rate is 4.2%.
The annual growth factor is 0.04289.
The annual growth rate is given as 4.23%.
Explanation:
As the complete question is not given, the complete question is found online and the solution is then implemented. The complete question is attached.
The equation is given as
The continuous growth rate is given as by comparing it with the value of
Here K is the continuous growth rate thus K is 0.042. or 4.2%.
The continuous growth rate is 4.2%.
The annual growth factor is given as
The annual growth factor is 0.04289.
The annual growth rate is given as 4.23%.
