Question

Refer to the income statement above. Luther's Net Profit Margin (NPM%) for the year ending December 31, 2019 is closest to Answer to two decimal places QUESTION 3 Whose cash flow is best described by the timeline shown below? Date years) 2 3 14 Cash Flows $3,500 -$1,000 $1,000 $1,000 -$1,000 Michael, who receives a loan for $3,500 to buy a car, and then makes annual payments of $1,000 Harry, who borrows $7,500, and then receives an annual payment of $1,000 Abigale, who loans a friend $3,500, which friend then pays back the loan in four annual installments of $1,000 Leo, who borrows $4,000, and then pays back the loan in four annual payments of $1,000 QUESTION 4 If the interest rate is 11%, the one-year discount factor is equal to 9.9.2020 Quin....pptx 2 Dr. Flynn - Car....pptx SPM | Proctorio is sharing your screen. Stop sharing Hide MacBook Pro

Answer 1

First option is correct.

As Michael reeives a loan of $3500 to buy a car which will increase the cash flow and then will make payment $ 1000 four times will reduce the cash flow .

Second option is wrong.

Because borrowing $7500 will the cash flow and payment received will increase more cash , not valid.

Third is Wrong.

Giving loan will reduce the cash flow and receiving back will increase , not goes with shown in above ques.

Fourth is wrong .

Borrowing $4000 will increase the cash flow but in above the amount is $3500 at 0 day.