Answer:
$181,818,181.82
Explanation:
The computation of the current value of this firm is shown below:
= (Firm expectation to earns in cash) ÷ (discount rate - increased cash earning percentage)
= ($10,000,000) ÷ (7.5% - 2%)
= ($10,000,000) ÷ (5.5%)
= $181,818,181.82
In order to find out the current value, we considered all the given information that are mentioned in the question
<span>If marginal utility of apples is diminishing and is a positive amount, consuming one more apple will cause </span>total utility increases as the marginal utility is still positive.
Answer:
"Supervisory body" is the right approach.
Explanation:
- A case investigator who usually reviews lawsuits regarding businesses and governments is considered a Supervisory body.
- It would be the independent central parliamentary entity responsible for the supervision of law enforcement records audit, the passenger details unit as well as the Federal or state authorities service Inspectorate.
Answer:
The contribution margin statement is found below with a contribution margin of $149,800 and operating income of $145100
Explanation:
Contribution Margin Statement
Sales revenue ($720*700) $504000
Variable costs:
Cost of generators($470*700) ($329000)
Commission(5%*$504000) <u> ($25200)</u>
Contribution margin $149,800
Fixed costs
Rent ($3000)
Additional commission <u> ($1,700)</u>
Operating income $145100
Cost of rent is fixed as it is not depended on the quantity of generators sold.
Additional commission is fixed amount,so it is a fixed cost, while costs of buying generators as well as the commission of 5% are both variable costs.
Answer:
The answer is a. $25.00
Explanation:
The bondholder's cash flow in one-year time from holding a TrunkLine's bond is calculated as:
(The possibility of TrunkLine doing well x Repayment receipt in case TrunkLine doing well) + (The possibility of TrunkLine doing poorly x Repayment receipt in case TrunkLine doing poorly) = (0.5 x 35) + (0.5 x 20) = $27.50.
The current price bondholders are willing to pay for a bond is equal to the present value of a bond's cash flow in one-year time, discounted at the interest rate on the bond 10% which is calculated as below:
27.50 / (1+10%)^1 = $25
Thus, the correct choice is a. $25.00
