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Pani-rosa [81]
1 year ago
14

TH Manufacturers expects to generate cash flows of $129,600 for the next two years. At the end of the two years the business wil

l be sold for an estimated $3.2 million. What is the value of this business at a discount rate of 14 percent?
Select one:

a. $2,704,654.82
b. $2,284,644.28
c. $2,675,703.29
d. $2,848,391.60
e. $2,900,411.36
Business
1 answer:
arsen [322]1 year ago
7 0

Answer:

Vo  = <u>C1  </u>    +        <u>C2 + V2</u>

        1 + k              (1 + K)2

Vo = <u>$129,600  </u> +   <u>$129,600 + $3,200,000</u>

        1 + 0.14            (1 + 0.14)2

Vo = $113,684.21  + $2,562,019.08

Vo = $2,675,703.29

The correct answer is C

Explanation:  

The current value of the business equals cashflow in year 1 divided by 1 + K plus the aggregate of cashflow and sales value in year 2 divided by 1 + k raised to power 2.

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The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses: Total North South
gizmo_the_mogwai [7]

Answer:

The correct answer is C that is $(140,000)

Explanation:

Elimination of the North Division will result in the overall net income or loss which is computed as:

Elimination of the North Division will result in the overall net income or loss = South Net Income (NI) - North's allocated costs

where

South Net Income is $100,000

North's allocated costs is $240,000

So,

= $100,000 - $240,000

= $(140,000)

Therefore, it will result in loss of $140,000

Note: The Net Income will be decline or decrease by $240,000 when the division was dropped.

4 0
2 years ago
Quaker State Inc. offers a new employee a single-sum signing bonus at the date of employment. Alternatively, the employee can re
Hatshy [7]

Answer:

$80.364.45

Explanation:

The lump sum that would make the employee indifferent can be determined by calculating the present value of the annuity

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 0 = $10,000  

Cash flow in year 1 = $40,000  

Cash flow in year 2 = $40,000

I = 9%

PV = $80,364.45

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

6 0
2 years ago
According to the Uniform Partnership Act, the three key elements of any general partnership are
Anon25 [30]

Answer:

(2) Common ownership, shared profits and losses, and right to participate in managing the operations.

Explanation:

Partnership refers to a mutual agreement between 2 or more individuals agreeing to carry out a business and to share it's profits and losses in an agreed ratio or as per the clauses in partnership deed.

Uniform partnership act regulates partnership agreements in majority of United States. The act also allows remaining partners after dissolution to continue the partnership if majority of them desire to do so.

Under the act, Partnership is characterized by common ownership of assets and liabilities by all partners, sharing of partnership profits and losses and equal rights to participate in managing the operations of the partnership.

4 0
2 years ago
Describe a problem you face in your everyday life or at work. How might you use hypothesis testing to find a solution or improve
ololo11 [35]

Answer:

The common problem i encounter mostly is the statistical modelling problem.

In this scenario we choose best combination of independent variables for the hypothesis testing. the independent variable shows the significant effect on dependent variable so we keep it in modelling.

My null hypothesis would be that there is no significant effect of independent variable on dependent variable.  for my alternative hypothesis there exist is significant effect of independent variable on dependent variable.

Explanation:

The common problem I face daily is the statistical modelling problem which is the selection of relevant independent variable for prediction modelling.

In this example to select the best combination of independent variables we use hypothesis testing. if the independent variable has significant effect on dependent variable then the independent variable shows the significant effect on dependent variable so we keep it in modelling. In this way the model gets improved.

Since there are always two variables or two categories. hence it has a two sample test.

The Hypothesis can be shown below:

Null hypothesis:

H0: There is no significant effect of independent variable on dependent variable.

Alternative hypothesis:

Ha: There is significant effect of independent variable on dependent variable.

6 0
1 year ago
This chart represents the desired employers for four different Manufacturing employees. Manufacturing Employees Interested in Wo
CaHeK987 [17]
I think the answer is A.

Gary should work in Manufacturing Production Process Development
Caton should work in Logistics and Inventory Control 
Eva should work in Production
Tam should work in Maintenance, Installation and Repairs. 
4 0
1 year ago
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