The nominal rate of interest on a bond is 7% and an inflation premium of 3%. This results in a real rate of interest of 4% on the bond
Indicate whether the statement is true or false
FALSE
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?Profit, even at the expense of customers' satisfaction, is the major thrust of the marketing concept.
Answer the following statement true (T) or false (F)
An accountant is required to discover every impropriety, defalcation, and fraud in a client's books.
Answer the following statement true (T) or false (F)
A mistake of value warrants contract rescission
Indicate whether the statement is true or false
The free cash flow for the first year of Epiphany's project is closest to ________
Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental cash flow projects: Year 0 1 2 3 Sales (Revenues) 100,000 100,000 100,000 - Cost of Goods Sold (50% of Sales) 50,000 50,000 50,000 - Depreciation 30,000 30,000 30,000 = EBIT 20,000 20,000 20,000 - Taxes (35%) 7,000 7,000 7,000 = unlevered net income 13,000 13,000 13,000 + Depreciation 30,000 30,000 30,000 +/(-) increase/(decrease) in working capital 5,000 5,000 5,000 - capital expenditures -90,000 A) $45,600 B) $28,500 C) $38,000 D) $53,200