Answer:
E. $7,190
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
For project A,
Cash flow in year 0 = $-14,500
Cash flow in year 1 = $9,500
Cash flow in year 2 = $9,500
Cash flow in year 3 = $9,500
I = 15%
NPV = $7190.64
To find the NPV using a financial calacutor:
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
I hope my answer helps you
Answer: E. 18,000
Explanation:
Wesley Corporation has 80,000 shares of common stock authorized. This the total amount of common stock that is available for sale by the company.
Only 50,000 shares of common stock were issued and 12,000 shares of common stock as held as treasury stock.
Then the total number of outstanding shares of Wesley Corporation amounts to 80,000 - 50,000 - 12,000 = 18,000
Answer:
Present value of the offer = $739,018.03
Explanation:
The cash flows described in the question from end of year 1 to end of year 20 represent a growing annuity for 20 years. The present value of a growing annuity is calculated as follows:
PV= ![\frac{P}{i-g}*[1-[\frac{1+g}{1+i}]^n]](https://tex.z-dn.net/?f=%5Cfrac%7BP%7D%7Bi-g%7D%2A%5B1-%5B%5Cfrac%7B1%2Bg%7D%7B1%2Bi%7D%5D%5En%5D)
where P = the annuity payment in the first period
i = interest rate per period that would be compounded for each period
g = growth rate
n = number of payment periods
P in the 1st year = the base salary of $59,000 + the 10% bonus of $5,900 = $64,900; g is 3.9% ;i=0.1 and n = 20
Present value of the offer = 15,000 received immediately + PV of the growing annuity
=
=739,018.03
Answer:
A
Potential market
Interested percentage of people x total population
1000000x20%
= 200000
B.
Mass market is potential market x those with requisite income in percentage
= 200000x50%
= 200000x0.5
= 100000
C
Available market is also mass market
= 100000
D.
Qualified market
Available market x minimum qualification in percentage
Percentage of Minimum qualification = 100 - 25%
= 75%
Qualified market = 100000x0.75
= 75000