Answer:
b. Hilton should purchase the resort, but Marriott should not.
Explanation:
given data
Resort sale = $400 million
free cash flow = $45 million
time = 20 year
return = 8%
risk-free rate = 2%
Hilton beta =1.1
Marriott beta = 1.3
solution
we get here first NPV of the resort when the cost of capital is
Re = risk-free rate + beta( Rm - Rf) ........................1
Re = 2 + 1.1 ( 8 - 2 )
Re = 8.6%
and
The NPV will be as
cash flow to free cash flow is = 45 million
so NPV is $22.767
and
as that at cost of capital of 9.8%,
The NPV will be
NPV = $11.6011
so we can say that Hilton should pursue the project due to the positive NPV
but due to the negative NPV here Marriott should not pursue the project.
The correct answer would be False
Answer:
Money is: any good that buyers and sellers have a desire to purchase, use, or hold. only the printed paper currency and the coins that are produced by the government. anything that both buyers and sellers will accept in exchange for goods and services. the gold and silver behind the currency and the coins that are issued by the government.
Explanation:
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Answer:
$15,747.34.
Explanation:
The Future Value of the Investment, FV can be determined using a financial calculator as follows :
Pv = - $3,400
n = 18 × 2 = 36
p/yr = 2
r = 8.70 %
Pmt = $0
Fv = ?
Using a Financial calculator, the Future Value of the Investment, FV is $15,747.34.
A bank service fee of $10 would be included on the bank reconciliation as on the last day of the bank statement
<h2>What exactly does a bank reconciliation include?</h2>
Starting with the bank's ending cash balance, adding any deposits that are currently being made up of the company to the bank, subtracting any checks that haven't yet been cleared by the bank, then either adding or subtracting any other items completes the basic process flow for a bank reconciliation.
<h3>A bank reconciliation is what?</h3>
At the conclusion of every month, a business should perform a bank reconciliation, which is that the process of confirming the correctness of both the bank statement and the cash accounts.
The most frequent reasons why the ending bank balance and ending book balance of cash differ.
Learn more about bank reconciliation :
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