« previous next »

Author Question: Cash budgets are completed only on an annual basis because shorter periods of time are too variable ... (Read 35 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?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Time Slows Down Near Matter Time Slows Down Near Matter
An Estimate of the Time of Global Peak Conventional Oil Production An Estimate of the Time of Global Peak Conventional Oil Production
Time course and phases of a nerve cell going from resting potential to action potential Time course and phases of a nerve cell going from resting potential to action potential
Drug development time line. Drug development time line.
Velocity-time Graph Velocity-time Graph
Disitive Time For Vegetables Disitive Time For Vegetables
Video: The pH scale - Strong acids and Weak acids

For a complete list of videos, visit our video library