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3 years ago

What is a reason one discounts future cash flows as part of the absolute valuation process?

Business

1 answer:

Brut [27]3 years ago

4 0

Answer:

c. Investors prefer cash flows today to cash flows in the future

Explanation:

As we know that the future profits are unpredicted and non-certain so here the investor should prefer the cash flows for today for cash flows to be done in the future. In addition to this, the discount future cash flows should have the part in the absolute valuation process

Therefore the option c is correct

And, the rest of the options are wrong

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Suppose the exchange rate is 10 pesos per dollar and you use $1000 to purchase a one-year mexican bond that pays 10% interest. N

Iteru [2.4K]

The amount of money I would have in US dollars would be $1,000

<h3>How much would I have in US dollars?</h3>

The first step is to convert dollars to pesos:

$1000 x 10 = 10,000 pesos

The second step is to determine the value of the investment in a year's time: (1.10) x 10,000 = 11,000 pesos

Now, convert pesos to dollars : 11,000 / 11 = $1,000

To learn more about exchange rate, please check : brainly.com/question/25780725

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6 0

2 years ago

If no harm results from an allegedly negligent act, there is no liability.

mixas84 [53]

The answer to your question is False

7 0

3 years ago

What are the four elements of the marketing mix?

Maksim231197 [3]

The 4 P's:

Price - cost of the product

Product - the type of good being sold

Place - how the product will get to the consumer (store, internet, etc)

Promotion - what marketing activities will be used to communicate the product (advertising, sales, etc)

5 0

3 years ago

A central bank acts as a lender of last resort especially in times of financial crisis. What is the purpose of this function

mr_godi [17]

Answer:

The purpose of the function is to lend the people indeed.

Explanation:

a central bank help to keep our money and give a loan

7 0

3 years ago

Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the

nikitadnepr [17]

Answer:

Betty's AGI $33,558

Explanation:

Betty's AGI:

Revenue from salon $88,560

Salaries paid to beauticians ($46,440)

Nail salon supplies ($23,620)

Salon's operating income $18,500

Interest income $14,665

Rental revenue from apartment building $35,180

Depreciation on apartment building ($14,400)

Real estate taxes paid on apartment building ($11,980)

Rental income $8,800

Alimony paid to her husband $7,100

Self-employment tax on salon income $1,307

Betty's AGI $33,558

Real estate taxes paid on Betty's house and charitable contributions are itemized deductions (below the line deductions).

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3 years ago