« previous next »

Author Question: Cash budgets are completed only on an annual basis because shorter periods of time are too variable ... (Read 34 times)

lidoalex

  • Hero Member
  • *****
  • Posts: 538
on: Jul 10, 2018
Cash budgets are completed only on an annual basis because shorter periods of time are too
  variable and uncertain for meaningful results.
 
  Indicate whether the statement is true or false

Question 2

You dream of endowing a chair in finance at the local university that will provide a salary of 150,000 per year forever, with the first cash flow to be one year from today.
 
  If the university promises to invest the money at a rate of 5 per year, how much money must you give the university today to make your dream a reality?
  A) 3,000,000
  B) 15,000,000
  C) 2,857,143
  D) This question cannot be answered.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


karlss

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jul 10, 2018
Answer to Question 1

FALSE

Answer to Question 2

Answer: A
Explanation: A) PV = PMT/r = 150,000/.05 = 3,000,000.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Shy children often have a high arousal level in novel social situations. Over time, parents can help ... Shy children often have a high arousal level in novel social situations. Over time, parents can help ...
Graph showing oral administration of a single-dose drug. The time of onset is 2 hours and the end of ... Graph showing oral administration of a single-dose drug. The time of onset is 2 hours and the end of ...
How to rearrange formulas to isolate for a variable (Part 2) How to rearrange formulas to isolate for a variable (Part 2)
In plant fossils, leaf margin is used to estimate mean annual temperature In plant fossils, leaf margin is used to estimate mean annual temperature
The time at which the mailman delivers the mail to Ace Bike Shop follows a normal distribution ... The time at which the mailman delivers the mail to Ace Bike Shop follows a normal distribution ...
Life Table for an Annual Plant Cohort Life Table for an Annual Plant Cohort
Video: Interpreting a cladogram Animation

For a complete list of videos, visit our video library