A constant perpetuity with cash flow, C, will have the first cash flow occur exactly 17 years from now. Each subsequent cash flow will be exactly 7 years after the prior cash flow. You have used the formula, PV=C/r (correctly) to determine a value. The determined value needs to be discounted exactly how many years to get the PV today of the cash flows? The determined value needs to be discounted exactly years to get the PV today of the cash flows.

Q: Is Evaluating Design Alternatives essential to achieve the goals?

A: Design alternative is referred as when the underlying project, product is designed in different…

Q: How does the decision-maker use the scenario analysis?

A: Scenario analysis helps investors and analysts in making better decisions.

Q: What Does RiskReally Mean?

A: Risk: Risk can be defined as upcoming uncertainty about variation from anticipated earnings or…

Q: Define the concept of going concern?

A: Going concern Concept: The basic principle of this concept is that business is assumed to exist for…

Q: When is independence required?

A:

Q: How is benchmarking beneficial?

A: Benchmarking is a measure which determines a company's competitive position through comparing its…

Q: What is the definition of “actuarial present value”?

A: Accumulated Benefit Obligation: It is an inexact rate of a company's pension plan liability towards…

Q: How can you tell the difference between planning and control decisions

A: The difference between planning and control decisions will be shown:

Q: What is pooling of interests and when can it be used?

A: Pooling of interest is an accounting method by which the consolidated entry of assets and…

Q: What is meant by the term decentralization?

A: Decision-making process:Decision making can be defined as the process of making choices through the…