The present value of the terminal value amounts to $863,689.48. The terminal value is calculated using the cash flows from the third year, which is $64,000. The growth rate for cash flows is set at 2% indefinitely, while the WACC is stated to be 8%. The formula used is Terminal value = Cash flows at year three * (1 + g) / (WACC - g), resulting in a terminal value of $1,088,000. To find the present value of this terminal cash flow, we multiply the terminal value by the discount factor for year 3.
Answer:
Casual Ambiguity
Explanation:
Analyzing the provided details, it appears that the foundation of Ardent's success is attributed to Casual Ambiguity. This term describes a scenario wherein it's nearly unfeasible to connect outcomes to their original states or origins. This is evident in Ardent's substantial success and its edge over rivals. Similar dynamics can be seen in the pricing trends of stocks, options, futures, and related financial products on markets.
The first step is to eliminate other possibilities, such as an error from the computer distributor.
Answer:
The entrance fee is charged per person, while the purchase of souvenirs is applicable collectively
Explanation:
According to the details mentioned in the question, children pay a discounted rate for tickets, which indicates that the tickets are priced individually. Conversely, souvenirs have a uniform price for groups since they can be shared among members, unlike the individual tickets.
Answer:
The result is $12.
By applying the formula total credit /Money created = Total deposit /Cash reserve ratio
Total deposit = $150
Cash reserve ratio = 12.5%
150/12.5
=12
Consequently, the total money generated in the banking system is $12. It can be concluded that money creation by banks is a mechanism whereby banks accept deposits from clients and provide loans to borrowers after subtracting the cash or reserve ratio.
