Answer:
The present value of the following series of cash flows discounted at 12 percent is:
$171,890
Explanation:
a) Data and Calculations:
Discount rate = 12%
$40,000 now;
$50,000 at the end of the first year;
$0 at the end of year the second year;
$60,000 at the end of the third year; and
$70,000 at the end of the fourth year
Future Value Discount Factor Present Value
$40,000 1 $40,000
$50,000 0.893 $44,650
$0 0.797 $0
$60,000 0.712 $42,720
$70,000 0.636 $44,520
Total present value $171,890
b) The present value is the discounted cash flow from series of future cash flows. The discount factor is applied to the individual cash flows, based on the number of years before the cash flow occurs.
Answer:
The answer is Investigating Primary Sources
Explanation:
I chose this answer because According to this problem, even though it doesnt say it, the smartest way to investigate a location you want to make a business
really you would need to see the sources for it.
Answer: 7.67%
Explanation:
To solve this, the financial calculator will be needed
Present value = -896.87
Future Value = 1,000
N = [(25 - 5years) × 2 = 40
PMT = $45
Given the above information, we will press the financial calculator as we'll press CPT after which we then press I/Y and we'll get 5.11%
Then, the the firm's after-tax cost of debt will be:
= (5.11% x 2 )(1 - 0.25)
= (0.0511 × 2) (0.75)
= 0.07665
= 7.665%
= 7.67%
Answer:
$236,250
Explanation:
The computation of external financing is shown below:-
For computing the external financing first we need to find out the retained earning which is shown below:-
Net income = Sales × Profit margin
= $2,500,000 × 15%
= $375,000
Increase in retained earning = Net income - Dividends
= $375,000 - ($375,000 × 35%)
= $375,000 - $131,250
= $243,750
External financing = Increase in assets - Increase in retained earning
= $480,000 - $243,750
= $236,250
