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Furkat [3]
2 years ago
4

Jenni's Diner has expected net annual cash flows of $16,200, $18,600, $19,100, and $19,500 for the next four years, respectively

. At the end of the fourth year, the diner is expected to be worth $57,900 cash. What is the present value of the diner at a discount rate of 11.6 percent
Business
1 answer:
kramer2 years ago
7 0

Answer:

Present value=$93,090.25

Explanation:

The worth of the dinner is the sum of the present value of the individual annual cash flows and the its value at the end of year 4.

Present Value = Cash flow× (1+r)^(-n)

r- discount rate , n- number of year

Present value = 16,200 × 1.116^(-1) + 18,600 ×1.116^(-2) + 19,100 × 1.116^(-3)  + 19,500 × 1.116^(-4) + 57,900× 1.116^(-4)

Present value= 93,090.248

Present value=$93,090.25

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A. Project management

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2 years ago
The Press has total assets of $848,000 and total debt of $402,000 on a market value basis. There are 25,000 shares of stock outs
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Answer: $17.84

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7 0
2 years ago
In Q1 2018, CNA Companies reports the following transactions: Capital expenditures of $15 million Loss on sale of equipment of $
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Answer:

-$11 million

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All three items should be deducted as it has a negative impact on the retained earnings

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2 years ago
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