The economic uncertainty in the U.S. market and the customers' preferences.
Answer:
a) $14,600.
Explanation:
The computation of the company total assets are shown below:
= Cash balance + supplies balance + equipment balance
where,
Cash balance = investment amount + borrowed amount - paid amount for equipment
= $6,200 + $3,200 - $2,120
= $7,280
And, the other item values would remain the same
Now put these values to the above formula
So, the value would equal to
= $7,280 + $1,120 + $6,200
= $14,600
Answer:
No
Explanation:
A licensing agreement is a partnership between an intellectual property rights owner (licensor) and another who is authorized to use such rights (licensee) in exchange for an agreed payment (fee or royalty).
Molly cannot simply pick up where she left off because two years after the license expires, all license rights lapse. Molly must re-qualify through the examination process before being licensed in real estate once again.
The answer is C. sole proprietorships.
Answer:
d. Choose Option B because it has a higher NPV
Explanation:
The computation is shown below:
For Option A:
Investment = $10 million
Present Value of cash flows = Cash flow ÷ Discounting rate
= $2 ÷ 10%
= $20 million
Now
NPV = $20 - $10
= $10 million
We know that
IRR is the rate at which the NPV will be zero
So, 2 ÷ r - 10 = 0
r = 20%
For Option B:
Investment = $50 million
Present Value of cash flows = $6.5 ÷ 10% = $65 million
NPV = $65 - $50 = $15 million
we know that
IRR is the rate at which the NPV will be zero
So, 6.5÷ r -50 = 0
r = 13%
Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.
However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage
