1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Leokris [45]
2 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]2 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%

You might be interested in
Which of the following statements about careers is true?
Temka [501]

Answer:

I would say A is the best choice

Hope This Helps!  Have A Nice Day!!

4 0
3 years ago
Priscilla is a trader of silver and diamond jewelry. Due to a recessionary trend in the industry, her business has not been maki
saveliy_v [14]

Answer:

The correct answer is: tolerance of uncertainty.

Explanation:

Even if the market for precious metals is facing a decline due to recession, Priscilla mortgaged her house so she can continue investing in her precious metals business. This decision reflects Priscilla's tolerance of uncertainty that comes to the surface when it is not confirm what the course of an event will be because the factors that determine the course are too ambiguous or even unknown. The adverse situation does not discourage Priscilla and she is being tolerant enough to decide to keep her business up and running.

8 0
3 years ago
What is the square root of 1369<br>​
mixas84 [53]

Answer:

the square root of 1369 is 37

Explanation: The cube root of 1369 is 11.103702468587. The fourth root of 1369 is 6.0827625302982 and the fifth root is 4.2391685997738.

4 0
3 years ago
A(n) __ can administer self-assessment tools to help you understand your personality and preferences .
klasskru [66]
Answer:
guidance counselor
Explanation:

Took the quiz
7 0
2 years ago
Which perspective in the globalization debate argues that regionalization within the world economy produces less integration and
Greeley [361]

<span>Skeptics. A person inclined to question or doubt all accepted opinions. A person who maintains  a doubting attitude as towards values,plans,statements, or the character of others. A person who doubts the truth of religion or of important elements of it.</span>

<span> </span>

6 0
3 years ago
Other questions:
  • An increase in the price of cheese crackers from $2.25 to $2.45 per box causes suppliers of cheese crackers to increase their qu
    7·1 answer
  • Janice is going to give her patient a bath. she has the option of using prepackaged bathing wipes or a bath basin and washcloths
    10·1 answer
  • In a market economy the factors of production are allocated by
    11·1 answer
  • The Cash account in the ledger of Clear Windows shows a balance of $12,596 at September 30. The bank statement, however, shows a
    7·1 answer
  • Kyle works for National Sporting Goods, where he manages critical data elements, such as identifying and acquiring new data sour
    14·1 answer
  • A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $60; Sec
    15·1 answer
  • CarCut Corporation has been employing the Fixed-Order Quantity model to manage the inventory of its best selling 3D printer. The
    11·1 answer
  • In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Orio
    15·1 answer
  • The George Company has a policy of maintaining an end-of-month cash balance of at least $37,000. In months where a shortfall is
    6·1 answer
  • Mr. Smith, the special education teacher, called Tim's parents to schedule a meeting to update information on Tim's progress on
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!