URL in brainly......how its changed

The net cash flows of Advantage Leasing for the next 3 years are $42,000, $49,000 and $64,000 respectively, after which the grow

liberstina [14]

Answer:

$863,689.50

Explanation:

The computation of the present value of the terminal value is shown below:

The terminal value at the end of the third year is

= Third year Cash flows × (1 + growth rate) ÷ (required rate of return - growth rate)

= $64,000 × (1 + 2%) ÷ (8% - 2%)

= $1,088,000

Now its present value is

= terminal value at the end of the third year ÷ (1 + rate of interest)^number of years

= $1,088,000 ÷ (1 + 8%)^3

= $863,689.50

This is the answer but the same is not provided in the given options

3 0

3 years ago

ACCOUNT TITLE

-BARSIC- [3]

What are you asking?

4 0

3 years ago

What is working capital?

Fed [463]

Answer:

Working capital, also called net working capital (NWC), represents the difference between a company’s current assets and current liabilities.

NWC is a measure of a company’s liquidity and short-term financial health.

A company has negative NWC if its ratio of current assets to liabilities is less than one.

Positive NWC indicates that a company can fund its current operations and invest in future activities and growth.

High NWC isn’t always a good thing. It might indicate that the business has too much inventory or is not investing its excess cash.

Explanation:

can you me as brainliest if its right? i just need a few more to rank up! ^-^

Also have a great day and good luck in your studies!

3 0

2 years ago

Read 2 more answers

The following units of an inventory item were available for sale during the year:Beginning inventory 10 units at $55First purcha

Leto [7]

Answer:

$1150.

Explanation:

Given: Beginning inventory 10 units at $55

First purchase 25 units at $60

Second purchase 30 units at $65

Third purchase 15 units at $70.

First, lets calculate total units of inventory available.

Total inventory available for sales during the year= $(10+25+30+15)= 80\ units$

∴ Total inventory available for sales during the year= 80 units

As given 60 units were sold out of total 80 units.

$80-60= 20\ units$

∴ 20 units of inventory is still remaining.

To determine the cost of unit sold, under LIFO accounting, you start with assumption that you have sold the most recent inventory and work backward.

As 20 units is still available after selling 60 units.

∴ The value of ending inventory= $(10\ units \times \$60 + 10\ units \times \$55)$

The value of ending inventory= $\$600+\$550= \$ 1150$

∴ The value of ending inventory using LIFO is $1150.

6 0

3 years ago

What is the difference between a business cycle and the day-to-day ups and downs of the stock market?

sveta [45]

The correct answer is d

8 0

3 years ago