Answer:
The prize is worth 4.26 million dollars today.
Explanation:
Giving the following information:
Cash flow= $500,000
Interest rate= 10% compounded annually
Number of years= 20
First, we will calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {500,000*[(1.10^20) - 1]} / 0.10
FV= $28,637,499.75
Now, the present value:
PV= FV/(1+i)^n
PV= 28,637,499.75/1.10^20
PV= $4,256,781.86
The prize is worth 4.26 million dollars today.
Answer:
$295
Explanation:
The computation of the earnings before interest and taxes (EBIT) is shown below:
= Sales - costs of goods sold - depreciation expense
= $900 - $485 - $120
= $295
Simply we deduct the costs of goods sold and the depreciation expense from the sales amount so that the accurate amount can be calculated
All other information which is given is not relevant. Hence, ignored it
Answer:
The correct option is C
Explanation:
Sunk cost is the cost which is incurred by an entity but cannot be recovered. It is considered when making a decision whether to continue investing in the ongoing project or proposal as it is unrecoverable.
Therefore, it is not considered in the investment proposal, as these are already been incurred and should not affect the investment decision of the business.
You are willing to pay to purchase one share of this stock at $25.31, if you require a 10.5 percent rate of return. D1 = 1.79 * 1.032 = 1.847 r = .105 and g = .032 is the given in this question. We will most likely willing to pay to purchase one share of this stock at $25.31
Answer:
The Answer is 12.100
Explanation:
Firstly get the variable margin = (revenue – variable cost) since we don’t have the revenue but we know that there was just one fixed expense we can get the variable margin in this way
Total Variable Margin = Net income + Fixed cost = $94.800+$570.700= 665.500
Then get the variable margin per unit = Price of sale per unit – cost per unit = 152-97 = $55
The units sold can be calculated in this way = Total Variable Margin / Variable Margin per unit= 665.500/55 = 12.100
Units price Total
Revenue 12,100.00 152.00 1,839,200.00
Variable Cost 12,100.00 97.00 (1,173,700.00)
Fixed Cost (570,700.00)
Net income 94,800.00