The free cash flow can be calculated as below:
Revenue 12000000
Less: Expense (8000000)
Less: Depreciation (1500000)
Earnings Before Tax 2500000
Less Tax (750000)
Earnings after tax 1750000
Add Depreciation 1500000
Total Cash Earnings 3250000
Less: Change in Working Capital (500000)
Less : Purchase of Asset (700000)
Free Cash Flow 2050000
Thus Free Cash Flow can be calculated as above.
Answer:
The correct answer is option (A) $519,799.59.
Explanation:
According to the scenario, the given data are as follows:
Payment 1st year = $218,000
Payment 2nd year = $224,000
Payment 3rd year = $238,000
Rate of interest = 14.5%
So, We can calculate the amount Southern Tours willing to pay by using following formula:
We add the payment for 3 years by simple interest as:
= 
+
+ 
= 
+ 
+ 
= $519,799.59
Hence, the amount Southern Tours willing to pay is $519,799.59.
Answer:
The correct word for the blank space is: automated; high value to customers.
Explanation:
Most online operations nowadays are automated which implies not having an employee behind a computer to satisfy customers' needs since they are too basic that can be all processed with the use of a server. However, the automation does not imply consumers undervalue the help obtained. Otherwise, the automation helps the process be faster which ends up representing high value for most customers.
