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lisov135 [29]
2 years ago
6

What is the present value of a five consecutive cash flows of $1,000 per year that start four years from today if the discount r

ate is 7%
Business
1 answer:
Georgia [21]2 years ago
5 0

The cash flow (payment or receipt) made for a given period or set of periods. The present value, PV, of a series of cash flows is the present value, at time 0, of the sum of the present values of all cash flows, CF. We start with the formula for PV of a future value ( FV) single lump sum at time n and interest rate.

Yw and pls mark me as brainiest

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Terrell Trucking Company is in the process of setting its target capital structure. The CFO believes that the optimal debt-to-ca
Semenov [28]

Answer:

a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.

b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.

Explanation:

The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.

Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.

Thanks!

4 0
2 years ago
Which of the following statements about entrepreneurs is FALSE? A. Entrepreneurs are people who start a new business. B. Entrepr
9966 [12]

Answer:

C. Entrepreneurs aren’t exposed to any risk when starting a new business.

Explanation:

Entrepreneurs are the person who starts their own business and took a financial risk from the start. Entrepreneurs manage the activities on their own,  develop new ideas. and create the team for the benefit of the organization

Therefore, Entrepreneur exposed to the financial risk while starting their own business

hence, the correct option is C.

3 0
3 years ago
Bali Inc. reported $605,800 net income before tax on this year’s financial statements prepared in accordance with GAAP. The co
kodGreya [7K]

Answer:

$669,950

Explanation:

Computation of taxable income

Bali’s net book income before tax$605,800 Excess of book over tax depreciation25,600

Book gain on equipment sale$(23,000)

(53,000-27,400)

Tax gain on equipment sale38,000 15,000

(23,000-38,000=15,000)

Nondeductible loss on sale to related party 23,550

(75,000-51,450)

Taxable income$669,950

(605,800+25,600+15,000+23,550)

Therefore the taxable income will be $669,950

4 0
3 years ago
A company delivers packages by truck and would like to minimize the length of the route that each driver must travel in order to
Dovator [93]

Answer:

Algorithm II uses a heuristic approach to provide an approximate solution in reasonable time.

Explanation:

6 0
2 years ago
Scott Bartello, a salesperson for Lamkin Golf Products, develops a list of potential customers and evaluates them on the basis o
sergejj [24]

Answer:

The correct answer is prospecting.

Explanation:

The organized search that is based on the use of techniques specially designed to find potential clients for a given business is known as commercial prospecting. This is a fundamental point to maximize the success of a company and attract new investors.

Although commercial prospecting can significantly increase the performance of a company and move it from an acceptable activity to occupy an important position in the market, many entrepreneurs ignore this step or simplify it, thus losing endless opportunities for gold from make your products and services the most sought after.

5 0
3 years ago
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