Greenspan Inc. discounts cash flows at a nominal rate of 10%. Inflation over the next few years is expected to average 3%. Which of the following would be a correct adjustment for inflation when computing net present value?
A) Discount cash flows at 10%; increase revenues and expenses by 3% each year.
B) Discount cash flows at 13%; increase revenues and expenses by 3% each year.
C) Discount cash flows at 7%; ignore inflation when forecasting revenues and expenses.
D) Either A or C would be acceptable.
Answer: D
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a. expense accounts. b. revenue accounts. c. the Dividends account. d. net income.
During the year, Franklin Corporation incurred the following costs in connection with the issuance of bonds: Printing and engraving ................................ $ 30,000 Legal fees ............................................ 160,000 Fees paid to independent accountants for registration information ........................................... 20,000 Commissions paid to underwriter
....................... 300,000 The amount recorded as a deferred charge to be amortized over the term of the bonds is a. $0. b. $30,000. c. $300,000. d. $510,000.
Which production environment handles products that are custom designed and built to specific requirements?
A. MTO B. MTS C. ATO D. ETO
Which sentence uses verbs correctly?
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