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Leokris [45]
3 years ago
9

The Chandler Group wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up". A

s a result, the cemetery project will provide a net cash inflow of $57,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 7 percent per year forever. The project requires an initial investment of $759,000. The firm requires a 14 percent return on such undertakings. The company is somewhat unsure about the assumption of a 7 percent growth rate in its cash flows. At what constant rate of growth would the company just break even?
Business
1 answer:
Tems11 [23]3 years ago
6 0

Answer: 6.49%

Explanation:

The constant rate of growth where the company would break even will be calculated thus:

Initial investment = Net cash inflow / (14% - g)

759000 = 57,000/(0.14 - g)

where g = growth rate

759000 = 57,000/(0.14 - g)

Cross multiply

759000(0.14 - g) = 57000

106260 - 759000g = 57000

759000g = 106260 - 57000

759000g = 49260

g = 49260/759000.

g = 0.0649

g = 6.49%

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Answer:

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Explanation:

Solution

The first step to take is to calculate the recognized gain.

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Now,

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Kenneth Chenault, the CEO of American Express Co. hopes to issue American Express cards through U.S. banks. At present, banks th
WINSTONCH [101]

Regulatory environment.

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5 0
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Ksivusya [100]

Answer:

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Explanation:

Average stock can be regarded as stock at the beginning of the period as well as stock towards ending of it

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7 0
3 years ago
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Answer:

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If import restrictions prohibit foreigners from selling various goods and services in the U.S. market,
Vesnalui [34]

Answer:

The correct answer is option b.

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If import restrictions prohibit foreigners from selling various goods and services in the U.S. market, foreigners will have fewer U.S. dollars which they can spend to buy U.S. goods and services. So they will be able to purchase fewer goods and services from the US.

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