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ohaa [14]
3 years ago
12

What is the maximum amount a firm should pay for a project that will return $15,000 annually for 5 years if the opportunity cost

is 10%
Business
1 answer:
Goryan [66]3 years ago
6 0

Answer:

$56,861.80  

Explanation:

The maximum price an investor would pay an investment today is the present value of the investment's future cash flows discounted by the opportunity cost of capital of 10%.

Present value of a future cash flow=future cash flow/(1+cost of capital)^n

n refers to the period in which the cash flow is expected , for instance,for year 1 cash flow n is 1, 2 for year 2 and so on.

PV=$15,000/(1+10%)^1+$15,000/(1+10%)^2+$15,000/(1+10%)^3+$15,000/(1+10%)^4+$15,000/(1+10%)^5

PV=$56,861.80  

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The information will be easier to organize and interpret if Quincy uses Transitional Matrix.

<h3>What is the Transitional Matrix ?</h3>

Transitional matrix a chart that lists job categories held in one period and shows proportion of employees in each of those job categories in a future period. Its Allows the organization to plan how to address these challenges.

<h3>What is the Transitional Matrix in HR ?</h3>

A transition matrix, or Markov matrix, can be used to model the internal flow of human resources.  These matrices simply show as probabilities the average rate of historical movement from one job to another. To determine the probabilities of job incumbents remaining in their jobs for the forecasting period.

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2 years ago
ABC Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing $240,000 from a bank
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Answer:

Total Asset = $2,598,200

Explanation:

Accounting equation : Asset = Equity + liabilities

Equity =common stock + retained earnings

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          = $2,000,000 + 38200

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Liabilities = $240,000 + 320000

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Total Equity and Liabilities = 2038200 + 560000

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double entry principle helps to ensure that the accounting equation is done e.g when common stock is issued contra entry is bank if cash is received.

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Examples of this include things like payday loans.

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Answer:

b. a natural response to a sudden increase in demand.

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