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GarryVolchara [31]
3 years ago
9

Which of the following is true about finding the present value of cash flows? Finding the present value of cash flows in future

years tells you how much you would need to invest today so that it would grow to equal the given future amount. Finding the present value of cash flows is important for financial theory, but it does not have much relevance to actual business decision making. Finding present value tells you what a cash flow will be worth in future years. What is the value today of a $158,000 cash flow expected to be received 12 years from now based on an annual interest rate of 7%? $70,154 $56,123 $108,739 $355,846
Business
1 answer:
Neko [114]3 years ago
3 0

Answer:

The correct answer is A: %70,154

Explanation:

Giving the following information:

True: Finding the present value of cash flows in future years tells you how much you would need to invest today so that it would grow to equal the given future amount.

What is the value today of a $158,000 cash flow expected to be received 12 years from now based on an annual interest rate of 7%?

We need to use the following formula:

PV= FV/(1+i)^n

FV= final value

i= interest rate

n= number of years

PV= 158000/(1.07^12)= $70,154

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If a factory produces 100 TV sets per year, each TV will be quite expensive to make. However, if a factory produces 20,000 TV se
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Answer:

The correct answer is D: economies of scale

Explanation:

Economies of scale are the diminished cost by companies when production becomes efficient.  Companies can achieve economies of scale by increasing production and lowering costs. <u>This happens because fixed costs are spread over a larger number of goods.</u> There are implications in variable costs as well (for example in obtaining discounts by large purchases from suppliers). In general, the larger the scale, the more cost savings.

The cost per unit depends on how much the company produces. Larger companies can produce more by spreading the cost of production over a larger amount of goods. Specialization of labor and more integrated technology boost production volumes. Lower per-unit costs can come from bulk orders from suppliers, larger advertising buys, or lower cost of capital. Spreading internal function (for ex: accounting, information technology, and marketing) costs across more units produced and sold helps to reduce costs.

5 0
3 years ago
An entrepreneur opened a specialized business on her land. After using up most of her capital to purchase inventory, however, th
gregori [183]

Answer:

C) The friend may sell the land only after formally foreclosing on the property.

Explanation:

The friend is not the current owner of the land, but he will be if he forecloses the property. The friend received the deed for security purposes, but the ownership was not transferred. This deed can be treated as a mortgage and the friend (creditor) needs to foreclose it thorough a judicial actions before being able to sell it to a third party.

The friend may sell the land, but only after formally foreclosing

8 0
3 years ago
The concept referring to the rights inherent in a supervisory position to give orders and expect the orders to be obeyed is:____
Snowcat [4.5K]

The concept referring to the rights inherent in a supervisory position to give orders and expect the orders to be obeyed is---- Authority

What is the concept of authority?

Authority can be defined as the legal right of a person or superior to command his subordinates. On the other hand, accountability refers to the duty of an individual to carry out his performance as per the company standards. The direction of the flow of authority is from the superiors to subordinates.

What is authority in a person?

a person who has authority over another person : a person who has the power to give orders or make decisions A child needs a figure of authority in his or her life.

Why is it important to have authority?

Authority can be used to protect our rights to life, liberty, and property. Authority can be used to provide order and security in people's lives. For example, air traffic controllers prevent accidents and provide safety for airplane passengers. Authority can be used to manage conflict peacefully and fairly.

Supervisory position :

Supervisory position means a position in which an employee directs staff members and manages a function, program or support service. Supervisory position means a position, the assigned duties of which include the supervision of a work unit of a department.

Learn more about supervisory position :

brainly.com/question/18634602

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5 0
2 years ago
UuUGgGHhH
pogonyaev

Answer:

$372.59

Explanation:

The amount deducted is 19% of $1,961

=19/100 x $1961

=0.19 x $1961

=$372.59

Amount deducted is $372.59

6 0
3 years ago
Present value​ (with changing interest​ rates). Marty has been offered an injury settlement of ​$12 comma 000 payable in 3 years
lesantik [10]

Answer:

If opportunity cost is 5%, PV=10,366.05

If opportunity cost is 6.5%, PV=9,934.19

If opportunity cost is 11.5%, PV=8,656.79

Explanation:

PV=Σ(\frac{CF_{t} }{(1+i)^{t} })

If opportunity cost is 5%: PV = \frac{12,000 }{(1+0.05)^{3} } =10,366.05

If opportunity cost is 6.5%: PV = \frac{12,000 }{(1+0.065)^{3} } =9,934.19

If opportunity cost is 11.5%: PV = \frac{12,000 }{(1+0.115)^{3} } =8,656.79

8 0
3 years ago
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