A owes B the following amounts: P 4,000 due 3 years hence P 5,600 due 4 years hence P 3,800 due 5 years hence the agreed rate of interest is 12% compounded monthly. A has just won a major prize in a lottery and decides to liquidate these debts now. How much should B be willing to accept in full payment?

Q: List two advantages of using NPV.

A: Net present value is the difference between the present value of cash inflows and the present values…

Q: WE NEED ALSO WITH FORMULA  SOLUTION THIS ABOVE QUESTION IN EXCEL

A: Ratio analysis is used to evaluate relationships between financial statement components. The ratios…

Q: Describe about the DVL methods and what are its advantages?

A: Dollar-value-LIFO: This method shows all the inventory figures at a dollar price rather than units.…

Q: What are some of the advantages of a multi-step approach?

A: An extensive examination of a company's costs and net income is provided by a multi-step income…

Q: Select a project on the basis of PPB and IRR with a mathematical example.

A: IRR Annual growth rate of growth that is estimated to be generated from an investment.

Q: can you show this in excel with the necessary formulas?

A: Trial balance is a worksheet/list of ledger accounts which are sorted into debit and credit…

Q: Describe two generic strategies.

A: Strategy: The word strategy may also be regarded as generalship. It may be defined as the…

Q: Write two examples of SWOT analysis

A: 2. SWOT analysis for Sedibeng Breweries Strength: Capital stock: A strong capital base has been…

Q: Define the term Continuous Compounding?

A: Continuous compounding is as far as possible which accumulating funds can surpass in the event that…

Q: Distinguish between reverse engineering and reengineering.

A:

Q: Briefly explain on Salam and Parallel Salam.

A: Salam and Parallel Salam are modes of Islamic financing which are useful for traders and small…

Q: What is feasible set?

A: When investors manage their ‘financial assets’, like ‘bonds’, ‘shares’ and other financial…

Q: Explain

A: LCNRV method means Lower of cost and net realizable value method.

Q: Give an example of each.

A: Cost standard example: The estimation to regulate the entire direct material cost standard and…

Q: Illustrates how you may obtain the true IRR by using the Goal Seek function?

A: IRR refers to the rate of return at which the net present value of a project is zero. This is the…

Q: Explain about the Black–Scholes model.

A: Black Scholes option pricing model is probably the most commonly used option pricing model in…

Q: What is Monte Carlo simulation analysis?

A: Answer: Monte Carlo simulation is the methodology used to consider the financial, cost, and project…

Q: What would be the equasion for solving this

A: Formula for calculating yearly payment: Yearly payment=(Loan amount * Rate%)1-1(1+Rate%)n

Q: Explain the drawbacks of IRR over MIRR with example?

A: Capital budgeting is part of investment decisions. Business firms consider capital budgeting in…

Q: Modigliani and Miller's Method - discuss briefly

A: Modigliani-Miller Theorem: It represents one of the most significant theorems in the field of…

Q: Can i see the exact working out for 2a

A: FIFO stands for First in First Out which is the inventory method states that the inventory which is…

Q: Parallel

A: ISTISNA AND PARALLEL ISTINA :

Q: . What is linear programming? Briefly explain the usefulness of the model.

A: A mathematical optimization technique called linear programming is used to determine the optimal…

Q: Explain an example of faithful representation.

A:

Q: Elaborate/Explain Integer Linear Optimization and give example

A: Answer:- Integer linear optimization is a further version of linear programming where the condition…

Q: please show a clearer solution

A: Here, Investment Amount (PV) is P100 Value of Investment Amount after one year (FV) is P112.55…

Q: How to do the according equation

A: Accounting Equation is the double-entry system used by the organization to get the balance sheet and…

Q: Can you explain DCF model?

A: Introduction Discounted cash flows: DCF is abbreviated as discounted cash flows. The concept of…

Q: What is CVP analysis? Give three examples?

A: CVP Analysis:CVP analysis establishes the relation between cost, volume and profit of the company.…

Q: Describe the process of calculating NPV.

A: Net Present Value (NPV) is a capital budgeting technique which uses a discount rate to bring all the…

Q: What does an exponential model look like? Explain what all of the pieces are?

A:

Q: What is the Baumol model, and how is it used?

A: The Baumol model, also known as the Baumol-Allais-Tobin (BAT) model, is a cash management model. In…

Q: can you show this problem using a two way data table?

A: Two way data states a way or the method of displaying the relative frequencies for the categorical…

Q: What is The NPV for Machine B=

A: NPV will be calculated as follows:-NPV =

Q: Describe about the concept of COGS.

A: Cost of goods sold (COGS): Cost of goods sold is the accumulate amount of all direct cost incurred…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.