Answer:
Year Cashflow [email protected]% PV
$ $
0 (750,000) 1 (750,000)
1 350,000 0.9259 324,065
2 325,000 0.8573 278,623
3 250,000 0.7938 198.450
4 180,000 0.7350 132,300
NPV 184,438
The correct answer is D. The difference in answers is due to rounding error.
Explanation:
Net present value is the diffrence between initial outlay and present value of inflow. We need to discount the cash inflows for year 1 to year 4 at 8% and then calculate the present value of cash inflows by multiplying the cash inflows by the discount factors. Finally, we will calculate NPV by deducting the initial outlay from the present value of cash inflows.
Answer: B. FIFO method
Explanation: The inventory prices of goods as calculated by a firm will remain the same at year end if a firm's inventory price is automatically updated on account of any additional inventory purchase and also if done on a periodic basis. This will occur only when the inventory pricing system is based on First-in-First-out method, whereby the prices of first inventory purchase is first associated or applied on goods sold until the unit in the inventory is exhausted. This allows prices of goods to move based on period of purchase where older prices gets precedence over the newer inventory purchase.
Answer:
This question requires us to calculate cash flows from operations and net income. Each of them is calculated as follow.
Cash flows from operations
Cash flow from operation comprises of cash generated or spend on core business related purchase and sale. It will be calculated as follow.
Cash from operations = 25,000 - 100,000 =($ 75,000).
Net income
Net income will be calculated using simple cashflow equation given below.
Closing cash balance = opening cashflow + net income + depreciation + cash flow from operations + cash flow investment + cash flow finance
25,000 = 55,000 + net income + 10,000 - 75,000 - 250,000 + 170,000
Net income = 115,000
Answer:
Intrinsic value: $ 45.19290274
The stock is undervalued as is selling for less.
Explanation:
We use the gordon model to solve for the intrinsic value of the share.
we must solve for the grow rate like it was an interest rate:
<u>grow rate: </u>
![2.00 \times (1+g)^{10} = 3.16\\\sqrt[10]{\frac{3.16}{2.00}} -1 = g](https://tex.z-dn.net/?f=2.00%20%5Ctimes%20%281%2Bg%29%5E%7B10%7D%20%3D%203.16%5C%5C%5Csqrt%5B10%5D%7B%5Cfrac%7B3.16%7D%7B2.00%7D%7D%20-1%20%3D%20g)
g = 0.046804808
<u>dividends one year from now:</u>
3.16 x (1 + 0.046804808) = 3.307903193
Now we calculate the instrinsic value:
Value: $ 45.19290274
The stock is undervalued as is selling for less.
Answer:
the answer is as follows
Explanation:
First of defining real wages is a cumbersome process. The living wage calculator developed by MIT professor Amy Glasemeier in 2004 eased the way a little but that too has it's issues.
The paper you are trying to write should start with this that how the idea of living wages is in itself difficult to be adopted as it is. Second the free market approach has been more successful in the economic history and a lot of evidence and data is available on that. The analysis that your paper will develop should outline the concerns that mainstream economists have regarding living wages and support it with some actual data.
The presentation would be rather easy after writing the paper. Which will include some graphs and data and some scholarly citations and it should work.
