Covan, Inc. is expected to have the following free cashflow:

Jose visited a garage sale and found a baseball card collection which he believed was worth over $1,000. he bought the collectio

Effectus [21]

Wanda does not have to refund his money. Wanda never said the collection was worth 1000 dollars or wroth anything. Jose assumed the value and paid the asking price. Wanda has no legal obligation to refund the money.

4 0

3 years ago

Suppose your nominal income this year is 5 percent higher than last year. if the inflation rate for the period was 3 percent, th

Lisa [10]

C. increased by 2 percent

5 - 3 = 2

3 0

3 years ago

A practitioner may perform an agreed-upon procedures engagement on prospective financial statements provided that which of the f

Marat540 [252]

Answer:

Option b is correct

Explanation:

The requirement of this service is to be independently derived because the procedures vary according to needs of the parties involved in the agreement.

6 0

3 years ago

You are set to receive an annual payment of $12,100 per year for the next 17 years. Assume the interest rate is 7 percent. How m

uranmaximum [27]

Answer:

The difference in value is worth $8,269 more in money.

Explanation:

Case 1. Payments are made at the end of each year

So here, we will use the annuity formula for computing the present value of payments that we are receiving at the end of each year.

Here

Annual Cash flow is $12,100

Interest Rate "r" is 7%

And

Number of Payments "n" will be 17

Present Value = Cash flow * [1 - 1 / (1+r)^n] / r

By putting values, we have:

Present Value = $12,100 * [1 - 1 / (1 + 7%)^17] / 7%

Present Value = $12,100 * 9.763223

Present Value = $118,135

Now

Cash 2. Payments are arising at the start of each year

Just like the case above, we will use the annuity formula for computing the present value of payments that we are receiving at the start of each year. The first payment will be at worth the same because it is received in today's price.

So

Present Value = Cash flow + Cash flow * [1 - 1 / (1+r)^n] / r

So by putting values, that were used in case 1, we have:

Present Value = $12,100 + $12,100 * (1 - (1/1.07)^16) / 0.07

Present Value = $12,100 + $12,100 * 9.446649

Present Value = $126,404

Difference in Present Value = PV of Case 1 - PV of Case 2

= $126,404 - $118,135 = $8,269

The difference in value is worth $8,269 more in money.

4 0

3 years ago

The emphasis on keeping customers for long periods of time is the central focus of ______ value and the reason firms focus on cu

Archy [21]

Answer:

Customer Lifetime Value

Explanation:

Customer Lifetime Value is a measure of how much amount of money a customer spends on your business/products/services over the course of his whole lifetime.

It is a predictor of how well you are doing to retain your existing customers.

Why is it important?

suppose you spend $10 to advertise your product (belt) and a customer buys 5 belts on average every year for 15 years. You get $12 profit for each belt sold.

$12*5*15= 900$ $