For any positive interest rate the present value of a given annuity will be less than the sum of the cash flows, and the future value of the same annuity will be greater than the sum of the cash flows.
Answer the following statement true (T) or false (F)
True
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Partners Ana, Beth, and Cathy have capital account balances of $90,000 each. The income and loss ratio is 5:2:3, respectively. In the process of liquidating the partnership, noncash assets with a book value of $75,000 are sold for $30,000. The balance of Beth’s Capital account after the sale is
a. $67,500.
b. $76,500.
c. $81,000.
d. $99,000.
The total risk associated with an investment can be divided into _____.
A. systematic risk and nondiversifiable risk B. firm-specific risk and unsystematic risk C. market risk and firm-specific risk D. market risk and nondiversifiable risk E. firm-specific risk and total risk
The future value of an ordinary annuity is the accumulated value of each annuity payment excluding interest as of the date of the final payment.
Answer the following statement true (T) or false (F)
What is net working capital? Why should it be considered an investment that a firm must make to increase its future profitability?
What will be an ideal response?