Answer:
The correct option is E
Explanation:
If the business is forecasting the financials of the balance sheet and mostly the high forecasted balance of cash implies that the company or the firm could pay off the debt in the next or the following year.
The forecasted high cash balance most likely decrease the long term and the short term debt of the company in order to reduce the cash levels to a consistent level.
So, none of the above options provided is correct.
What Octavia should do is send a quick reply explaining that she needs more time to consider the question. Say the customer is asking asking something really complicated, the receiver will might need more time to answer than an easier question.
Answer:
The net gain or loss in the future market is $105000
Explanation:
Total Future contracts = 20
Total bushel in 1 contract = 5000
Total quantity of wheat = 20 * 5000 = 100,000 bushel
In Cash Market
Break-even price = $ 7.00
Spot price in September = $ 8.40
Therefore company will make a loss here since spot price is greater than break-even price.
Total Loss = (breakeven - spot price) * Quantity
Total loss = (7 - 8.40) * 100000
= $ - 140,000
In future market
Forward contract price = $ 5.95
Spot price in September = $ 8.40
Here company will make a profit because actual buy price is $ 5.95 and spot price is $ 8.40
Total profit = (Spot price - forward price) * Quantity
= (8.40 - 5.95) * 10000
= $ 245000
Net profit/loss = Profit/Loss in cash maket + Profit/loss in futures market
= $ - 140000 + $ 245000
= $ 105000
Answer:
The IRR (in %) for Project A is 31%.
Explanation:
Let IRR be x%
At IRR, present value of inflows = present value of outflows.
218917 = 25700/1.0x + 53000/1.0x^2 + 58000/1.0x^3 + 420,000/1.0x^4
solving for x, we find:
x = 31%
Therefore, The IRR (in %) for Project A is 31%.
Answer:
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Explanation:
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