Question
you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar) for the project as follows:
Year cashflow
0 -100
1-10 15
0n the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.30. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 15% what is the net present value of the project
Answer:
NPV= -$32.58
Explanation:
The net present value of the investment is the cash inflow from the investment discounted at required rate of return. The required rate of return can be determined using the the formula below:
Ke= Rf +β(Rm-Rf)
Ke =? , Rf- 5%,, Rm-15%, β- 1.30
Ke=5% + 1.30× (15-5)= 18%
The NPV = Present value of cash inflow - initial cost
= A×(1-(1+r)^(-10)/r - initial cost
A- 15, r-18%
NPV = 15× (1-1.18^(-10)/0.18 - 100= -32.58
NPV = -$32.58
Answer Choices:
A. is staffed by accountants, economists, tax lawyers
B. keeps Congress well informed on international affairs
C. was created by Article III of the Constitution
D. consents to treaties and trade agreements negotiated by the President
Answer:
A.
Answer:
Balance of payments (BOP)
Explanation:
The balance of payments is referred to details of the transaction that held between two entities either in the same country or outside the country of a particular time period.
when the transaction was done for another country, there is a deduction of credit from the balance of payment and when transaction was done for the same country then credit is added to the BOP
The answer is option "d", "<span>it would have an increase in accounts receivable and a corresponding decrease in cash".
</span><span>Accounts receivable alludes to the extraordinary invoices that an organization has or the cash the organization or company is owed from its customers. The expression alludes to accounts a business has a privilege to get or receive, the reason behind this is that it has conveyed an item, product or service.
</span>
Answer:
See explanation section.
Explanation:
P2 Zisk Co.
Budgeted cash payments
For the 2nd quarter
April May June
Accounts payable $22,000
70% in the month of purchase $56,000 $77,000 $84,000
30% in the month after purchase $24,000 $33,000
Budgeted cash payments $78,000 $101,000 $117,000
Total budgeted cash for the 2nd quarter = $296,000.
30% in the month after purchase means 30% amount will be given in the following month.
