Answer appropriately please?? a) Cash inflows of $1787 will occur at the end of each year from years 1 to 5. Cash inflow of $6000
Answer appropriately please?? a) Cash inflows of $1787 will occur at the end of each year from years 1 to 5. Cash inflow of $6000 will occur at the end of year 5.
Required rate of return = current earning rate on savings = 7%
b) Maximum price would be the present value of the above cash flows.
Maximum price = $1787 x PVIFA (7%, 5) + $6000 x PVIF (7%, 5) = $1787 x 4.10019743589 + $6000 x 0.71298617946 = $11,604.97
37. Refer to the information above. On the basis of the above flow from financing activities? a. $145,500 net cash used for financing activities. b. $500,100 net cash used for financing activities. c. $147,000 net cash used for financing activities. d. $206,100 net cash used for financing activities. SECTION B. Consider the following information: Proceeds from sale of bonds for cash $1,000,000 Cash interest payments to bondholders 25,000 the s Conversion of bonds into preferred stock 1,000,000 Purchase of long-term investment for cash 300,000 Payment of cash dividends to stockholders 75,000 Proceeds from long-term note payable 500,000 Issuance of common stock for cash 5,000,000 Payment of interest due on long-term note payable 50,000 Issuance of common stock for land 250,000 Repurchase of common stock on open market for cash 125,000 Payment of principal amount due on long-term note payable 250,000 Acquisition of land in exchange for note payable 900,000 Receipt of cash dividend income on long-term investments 40,000 Proceeds from sale of building 525,000 Proceeds from sale of long-term investment 2,500,000 Purchases of equipment 125,000 Required: Using the appropriate information Part a. Compute the Net Cash Flow from Investing activities. Part b. Compute the Net Cash Flows from Financing activities.IL. Short Aerwer Questions: 1. What is scarcity and why does it exin? How is scarcity related to the study of economics? 10 points 2. Discuss the three fundame tions that all nations must address. 10 points 3. Draw a supply and demand curve for cars and graphically illustrate the effect of an increase in the price of steel (an input). Label all axes and curves. 10 points 4. Draw a PPF with cars on the x-axis and TV's on the Y axis. Make sure the PPF exhibits increasing opportunity costs. 10 pointsQuantity of Quarks 2 4 6 8 10 12 14 16 18 20 Quantity of Quirks 11. Refer to the graph above to answer this question. If this society chooses to produce 10 quirks, what is the maximum quantity of quarks it can produce? A) 500 quarks. B) 800 quarks. C) No quark quarks. D) 600 quarks
