Answer:
The correct answer is: $1715,87
Explanation:
To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
The formula is:
n
<h3>NPV= ∑ [Rt/(1+i)^t] - I0</h3>
t-1
where:
R t =Net cash inflow-outflows during a single period t
i=Discount rate of return that could be earned in alternative investments
t=Number of timer periods
<u>In this exercise:</u>
NPV= 0+ 250/1,10^1 + 400/1,10^2 + 500/1,10^3 + 600/1,10^4 + 600/1,10^5
<u>NPV= $1715,87</u>
Connie's next step should be
Not - go back and revisit her plan objectives
Maybe - Conduct primary research and analyze Fred's current customers.
<h3><u>
Explanation:</u></h3>
It is very essential for an entrepreneur who decides to start a new business to have a business plan that helps him in setting up the businesses in the right track and usage of funds in an effective manner. A business plan acts as a blue print of a new business and the objectives and resource utilization.
In the scenario give, Fred decides to start a new boutique and has conducted researches geographic locations and the type of boutiques supported by the demography. She must not then go back and review her plan objectives as she has decided to start it with a good plan and she may conduct a primary research about the current customers of him.
<span>It is associated with using a market penetration strategy when there is an opportunity for price skimming. Leaving money on the table means that during a business deal or negotiation one of the parties does not receive the amount of money they could have earned, instead they accept a smaller sum. This strategy can be beneficial or hurtful depending on the scenario.</span>
Answer:
Good value, is the right answer.
Explanation:
The given blank will be filled by “good value” because when a restaurant charges or offer a value menu it means that it is just making a minimum profit in order to attract the customers. However, charging a lower price which makes minimum profit results in the good value pricing process. Additionally, good value pricing is a technique to increase their sales.
Answer:
A) $1384.24
Explanation:
Terminal Value = Free Cash Flow (FCF) of last forecast *(1+ perpetual growth rate)/(discount rate – perpetual growth rate)
FCF of last forecast = $88*(1+10%)^2 = $106.48
Gonzales Corporationʹs expected terminal enterprise value in year 2 = $106.48 * (1+4%)/(12%-4%) = $1382.24
