Answer:
The effective price you received for the car was $5,987
Explanation:
Effective price of the car can be calculated by the Net Present values of all the cash flows associated with the note.
Using following present value formula for each cash flows
Pv = FV / ( 1 + r )^n
Net Present Value of all call flows = [ $1,000 / ( 1 + 6% )^1 ] + [ $2,000 / ( 1 + 6% )^2 ] + [ $2,000 / ( 1 + 6% )^3 ] + [ $2,000 / ( 1 + 6% )^4 ]
NPV = $943.4 + 1,780 + $1,679.24 + $1,584.19 = $5,986.83 = $5,987
Answer:
c. rise, interest rates to rise, and the dollar to appreciate
Explanation:
Answer:
The lenders use a system of five Cs to know about the creditworthiness of potential borrowers. They weigh five characteristics of the borrower and various conditions of the loan, chances of default and risk of loss. The five Cs used by the lender are capacity, character, collateral, capacity and conditions.
- The first C is character, it can be known by the previous loans of the applicant.
- Debt to income ratio is the second C.
- The third C is capital, it is the amount of money possessed by an applicant.
- Collateral is the fourth C, it is the asset that can be used to back the loan.
- The fifth C is conditions, the amount of the loan, its purpose and the prevailing interest rate in the market are known as conditions.
Answer:
Current value from operations is $534.71 million.
Explanation:
The value from operations can be calculated by discounting back the free cash flow of the firm. The first three year's FCF will be discounted back using the WACC and when the growth rate o FCF becomes constant after Year 3, the terminal value will be calculated and discounted back too.
The current value from operations = FCF1 / (1+WACC) + FCF2 / (1+WACC)² + FCF3 / (1+WACC)³ + [FCF3 * (1+g) / WACC - g] / (1+WACC)³
Current value from operations = 20 / (1+0.1) + 25 / (1+0.1)² + 30 / (1+0.1)³ + [30 * (1+0.05) / (0.1 - 0.05)] / (1+0.1)³
Current value from operations = $534.71 million
Answer:
The correct answer is letter "C": conducting business in a way that protects the natural environment while making economic progress.
Explanation:
Sustainable development is the capacity an institution has to satisfy individuals' needs without damaging the environment neither harming the atmosphere. To reach this stage there must be an equilibrium between the <em>economy, society, </em>and <em>the environment.</em> Sustainable development is difficult to be obtained with high poverty rates, habitats destruction, or indiscriminately resources exploitation.
