« previous next »

Author Question: Cash budgets are completed only on an annual basis because shorter periods of time are too variable ... (Read 41 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?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

The Genus Homo Through Time The Genus Homo Through Time
Time Estimates for Specific Office Procedures Cont. Time Estimates for Specific Office Procedures Cont.
Bereaved spouses studied before loss, at the time of loss, and 18 months after loss show five ... Bereaved spouses studied before loss, at the time of loss, and 18 months after loss show five ...
Change in Bone Mass over Time In your early years, more bone mass is added than lost in your body Change in Bone Mass over Time In your early years, more bone mass is added than lost in your body
Variable and absorption costing, explaining operating-income differences. Variable and absorption costing, explaining operating-income differences.
Time-of-entry mapping Time-of-entry mapping
Video: Ventilation - phases and driving forces

For a complete list of videos, visit our video library