ABC company is considering whether or not to invest in a joint venture. The initial cost is $8.2 million and the estimated operating cash flows are shown in the following table: Period Cash Flow 1 $900,000 2 $930,000 3 $650,000 The firm's interest in the venture can be sold after three years with an estimated after-tax salvage value of $8 million. What is the IRR of this investment?
The firm's interest in the venture can be sold after three years with an estimated after-tax salvage value of $8 million. What is the IRR of this investment?
Group of answer choices
a 10.5%
b 14.1%
c 9.4%
Answers
The firm's interest in the venture can be sold after three years with an estimated after-tax salvage value of $8 million. The IRR of this investment is approximately 14.1%.
To calculate the IRR, we need to find the discount rate that makes the present value of the cash inflows equal to the initial investment cost. In this case, the initial cost is $8.2 million, and the estimated cash flows are as follows:
Period 1: $900,000
Period 2: $930,000
Period 3: $650,000
The salvage value after three years is $8 million.
To calculate the IRR, we need to set up the following equation and solve for the discount rate:
$900,000/(1+r)^1 + $930,000/(1+r)^2 + $650,000/(1+r)^3 + $8,000,000/(1+r)^3 = $8,200,000
By trial and error or using a financial calculator or software, the approximate discount rate (IRR) that satisfies this equation is approximately 14.1%.
The IRR of this investment in the joint venture is approximately 14.1%. This means that the project's internal rate of return is 14.1%, indicating that the investment is expected to generate a return that exceeds the company's cost of capital.
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Related Questions
In order for a teen to have a successful business, they must to do all of the following EXCEPT _____. A. Be prepared to work long hours b. Make a profit with the business c. Ignore customer satisfaction d. Be able to promote the business Please select the best answer from the choices provided A B C D.
Answers
In order for a teen to have a successful business, they must do all of the following except ignore customer satisfaction (option C).
To have a successful business as a teenager, it is crucial to prioritize customer satisfaction. Ignoring customer satisfaction can lead to poor reputation, negative reviews, and ultimately, a decline in business. A successful business requires understanding and meeting the needs of customers, providing quality products or services, and ensuring their satisfaction.
On the other hand, the other options listed—working long hours (option A), making a profit (option B), and being able to promote the business (option D)—are essential aspects of running a successful business. Building a successful business often requires dedication and hard work, which may involve long hours.
Additionally, generating profits is a fundamental goal for any business, as it ensures sustainability and growth. Lastly, being able to promote the business effectively is crucial to attract customers, increase visibility, and expand the customer base.
In summary, a teenager aspiring to have a successful business must prioritize customer satisfaction, while also being prepared to work long hours, make a profit, and effectively promote the business.
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25 points
You are an experienced customer service representative. How will you handle an irate customer? What skills will you employ? Your response must be at least 150 words.
Answers
Answer:
The impatient customer
The situation: An impatient customer may have been waiting in line longer than usual, they may be running late to their next appointment, or maybe they're restless while you search for a solution to their issue or concern.
How to handle it: Be clear and to the point without appearing dismissive of their demeanor. Explain transparently why there's a wait or delay without getting into specifics. Make sure an impatient customer knows that effort is being invested in resolving the situation.
Frame your answers in a positive light, too. For example, instead of saying that an item is out of stock, explain that a new delivery is expected by a certain date or that you are working quickly to restock the items in question
whatever, incorporated, has a bond outstanding with a coupon rate of 5.68 percent and semiannual payments. the yield to maturity is 6.5 percent and the bond matures in 17 years. what is the market price if the bond has a par value of $1,000?
Answers
The market price of the bond is $892.90 if the yeild of maturity is 6.5% and the bond mature in 17years.
To calculate the market price of the bond, we need to discount the future cash flows (coupon payments and the principal payment) at the yield to maturity. The formula to calculate the present value of the bond is:
Bond price =
\([C/(1 + r/n)^nt] + [F/(1 + r/n)^nt]\)
Where:
C = semiannual coupon payment = 5.68% * $1,000 / 2 = $28.40
r = annual yield to maturity = 6.5%
n = number of coupon payments per year = 2
t = number of years until maturity = 17
F = face value or par value of the bond = $1,000
Plugging in these values into the formula, we get:
Bond price = [$28.40/1.1039] + [$1,000/1.1039]
Bond price = $490.82 + $402.08
Bond price = $892.90
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Please help I'm about to fail my class and i will be grounded for life, 100 pts for it! its financial literacy
Part One–Research
Imagine you bought 100 shares of stock three years ago and are selling it today. Select a company and research its stock prices. You can start with websites like Nasdaq and Fidelity. Determine the stock's price three years ago, or the purchase price, and its price today, or the selling price.
Part Two–Determine the Real Return
Calculate the real return of your stock investment using the following information:
Purchase price of 100 shares of stock
Selling price of 100 shares of stock
10% tax rate
3% inflation rate
2% administrative fee on the selling price of the stock
Part Three–Evaluate
Analyze your research and calculations, and answer the following questions:
What company did you select to buy stock in? Why did you select the company?
Consider the real return of the stock investment. Do you consider it a wise investment? Why or why not?
Answers
1. I imagine buying 100 shares of Amazon.com Inc. on January 3, 2020, when the stock price was $93.75, investing $9,375.
Today, October 31, 2022, the stock price of Amazon.com Inc. is $102.44.
2. The real return on my investment in Amazon.com Inc was a net loss of 7.12% or $667.60.
3. The company I selected to buy its stock three years ago was Amazon.com Inc.
4. I decided on Amazon.com Inc., hoping to earn spectacular returns since it is a multinational technology company.
5. When I consider the actual return on the stock investment in Amazon.com Inc., I think it was an unwise investment.
6. The investment returned a negative real value because I realized less than I initially invested; I actually lost about $667.60 overall.
What is the stock investment?Stock investment is the purchase of shares for an ownership interest in a publicly-listed company.
The investor makes the investment with the hope that the investee will grow and perform well over some period, enabling the investor to earn some real returns (in the form of dividends and capital appreciation).
Purchase of 100 shares Jan. 3, 2020 = $9,375 (100 x $93.75)
Sales of 100 shares Oct. 31, 2022 = $10,244 (100 x $102.44)
Tax (10%) = $1,024.40 ($10,244 x 10%)
Inflation (3%) = $307.32 ($10,244 x 3%)
Administration fee on sales (2%) = $204.88 ($10,244 x 2%)
Real Returns in dollars = $8,707.40 ($10,244 - $1,024.40 - $307.32 - $204.88)
Loss on returns = $667.60 ($8,707.40 - $9,375)
Loss percentage = 7.12% ($667.60/$9,375 x 100)
Unfortunately, Amazon.com Inc. did not pay any dividends during the period of my investment, and I really lost funds to taxes, inflation, and administration fees when I sold it.
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if the market for water were perfectly competitive instead of monopolistic, how many gallons of water would be produced and sold?
Answers
If the water market were perfectly competitive instead of monopolistic, firms would have no market power, so they couldn't set prices above the competitive market price. In a competitive market, all firms sell the same products, which are perfect substitutes. As a result, if one firm tries to charge more than the competitive price, consumers will go to another firm to buy their products instead.
The quantity of water that is produced and sold in a perfectly competitive market will be determined by the intersection of the industry's supply and demand curves. In a perfectly competitive market, the industry supply curve is horizontal at a competitive price. This means that firms will supply any quantity of water at the market price, but they will not produce any additional quantity of water at a higher price.
The demand curve in a perfectly competitive market is downward-sloping. As the price of water falls, consumers will demand more of it. In a competitive market, the quantity of water produced and sold will be the quantity where the industry's supply and demand curves intersect.
Therefore, the amount of water produced and sold in a perfectly competitive market would depend on the prevailing market conditions, such as the supply and demand curves. Without more information, it is impossible to determine the precise number of gallons of water that would be produced and sold. In conclusion, if the water market were perfectly competitive instead of monopolistic, the quantity of water produced and sold would be determined by the intersection of the industry's supply and demand curves.
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Sample ________
is the number of people questioned for a survey.
Answers
___________
Answer:
Sample size
Explanation:
Sample size is the term that describes the number of objects or people involved in a research study. Sample size applies where it's impossible to get a response from the entire population due to its large size. The researcher uses several techniques to select a small number of respondents believed to represent the entire population. The small number or group selected is the sample size.
3) What is the present value of $1000, received at the end of 4 years of investment, with a discount rate of 4%?
Answers
Answer:
$854.81
Explanation:
The formula for calculating the present value is as below
PV = FV/( 1 + r)^n
Where Fv =1000
r = 4% or 0.04
n= 6
PV = $1000/ (1 + 4/100)^4
PV=$1000/(1 + 0.04)^4
PV=$1000/1.16985
PV =$854.81
.
Answer:
3629.9
Explanation:
I just did the test and thats what it told me the correct answer was.
Consumer confidence and willingness to spend begins to increase during periods of ____, and marketers must remain very flexible to make the necessary adjustments.
Answers
Consumer confidence and willingness to spend begins to increase during periods of recovery, and marketers must remain very flexible to make the necessary adjustments.
What does the term consumer confidence mean?The term consumer confidence is known to be a word that connote a form of economic indicator that tends to measures the extent of optimism that consumers do possess in regards to the total state of a country's economy as well as their own financial situations.
Therefore, based on the above, Consumer confidence and willingness to spend begins to increase during periods of recovery, and marketers must remain very flexible to make the necessary adjustments.
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A pickpocket routinely carries a knife in his pocket just in case he needs it. On one occasion, he is successfully able to remove a man's wallet without being noticed. He is later caught and tried. Which of the following is the best answer for why this occurred?
A. The act is not considered robbery because the thief did not have a firearm.
OB. The act is considered robbery because the thief knew the use of
force was a possibility for him in his plans.
OC. The act is not considered robbery because no violent force was used or threatened in the theft.
OD. The act is considered robbery because the thief was armed and
able to use violent force.
Answers
Answer:
OC
Explanation:
Theft means taking someone's property but does not involve the use of force. This would describe this scenario
Robbery would mean the pickpocker inflicted, threatened or attempted to inflict harm on the man
For product X, the price elasticity of demand has an absolute value of 3.5. This means that quantity demanded will increase by
Answers
It means that quantity demanded will increase by 3.5% for every 1% decrease in price.
What is the price elasticity of demand?
Price elasticity of demand measures the percentage change in quantity demanded when the price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes. When price increases, quantity demanded decreases by more of than the percentage change in price. When price increases, the quantity demanded declines.
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the international accounting standards committee (iasc) reorganized in 2001 to create a new standard-setting body called the international accounting standards board (iasb). the iasb issues global accounting standards called
Answers
Financial Reporting Standards Around the World (IFRS). The objective of the IFRS, which are widely regarded as the most important international accounting standards, is to guarantee the reliability, comparability, and transparency of financial statements.
What are the IASB's published accounting standards?Financial statements for publicly traded corporations should be uniform, transparent, and simple to compare on a global level thanks to the International Financial Reporting Standards (IFRS). The International Accounting Standards Board issues IFRS (IASB).
What problems arise from the accounting standard?Accounting challenges can result in large financial statement errors, fraud that goes unnoticed due to weak internal controls, erroneous application of generally accepted accounting principles (GAAP accounting standards), regulatory noncompliance, and cybersecurity risks.
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Banks that offer their services exclusively through the web are called:
a. Online banks b. Modern banks c. Brick and mortar banks d. Retailer banks
Answers
Banks that offer their services exclusively through the web are called online banks.
What is the term used for banks that operate exclusively online?Banks that operate solely through digital platforms, without physical branch locations, are known as online banks.
These banks provide a wide range of financial services, including online account management, digital transactions, and customer support through internet-based platforms and mobile applications.
By leveraging technology, online banks offer convenient and accessible banking services to customers, allowing them to conduct transactions and manage their finances from anywhere with an internet connection.
Online banks have gained popularity in recent years due to their convenience, competitive interest rates, and lower fees compared to traditional brick and mortar banks.
They provide a streamlined banking experience, allowing customers to perform various banking activities without the need to visit a physical branch.
However, it's worth noting that some online banks may have partnerships with physical banks to facilitate certain services like cash deposits or withdrawals.
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Which of the following is NOT counted in the unemployment rate?
A. a person who was fired from their job and begins filling out applications to get a new
one.
B. a person who is watching T.V. all day and is not looking for a job
C. a person who just graduated from college but has not found a job yet.
D. a person who quit their job to look for a job with fewer work hours
Answers
n instrument that is payable to cash or to whomever may have possession of the instrument is known as _______ paper.
Answers
Answer: bearer instrument
Explanation:
Bearer instrument is an instrument that is payable to cash or to whomever may have possession of the instrument. The bearer instrument is also referred to as the bearer bond.
It is a security whereby there is no record of ownership information and the security is typically issued to the purchaser in physical form and whoever holds it is believed to be the owner.
Which of the following is an example of a game where the customer can choose their own numbers?
Answers
An example of a game where the customer can choose their own numbers is; Mega millions.
Playing the Mega millions gameMega Millions is a game whose tickets cost $2.00 per play. Players may pick six numbers from two separate category of numbers;
Five different numbers from 1 to 70 (the white balls) and One number from 1 to 25 (the gold Mega Ball)The jackpot is hit when all six numbers match the six drawn numbers.
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A party can be discharged from a contract. Name eight ways thata party can be discharged.
Answers
A party can be discharged from a contract by impossibility of performance, breach of contract, rescission, frustration of purpose, operation of law and illegality.
1. Performance: The parties fulfill all the terms and conditions of the contract, and the contract comes to an end. A party is discharged from a contract when they have fully performed their contractual obligations.
2. Mutual agreement: Both parties agree to end the contract by mutual consent. Both parties may mutually agree to terminate the contract, thereby discharging their obligations.
3. Impossibility of performance: The performance of the contract becomes impossible due to unforeseeable events, such as war, natural disasters, or death of the parties involved.
4. Breach of contract: A party breaches the contract, and the non-breaching party can choose to terminate the contract. If one party breaches the contract, the other party can be discharged from their obligations.
5. Rescission: One party can request the court to rescind or cancel the contract due to misrepresentation, fraud, or mistake.
6. Frustration of purpose: The objective of the contract becomes meaningless due to unforeseeable events, such as a change in law or regulation.
7. Operation of law: The contract becomes illegal due to a change in the law, or the contract is declared void by the court. A party can be discharged by operation of law, such as bankruptcy, which makes it impossible for the party to fulfill their contractual obligations.
8. Illegality: If the subject matter of the contract becomes illegal or the contract itself is found to be against public policy, a party can be discharged from the contract.
By understanding these eight ways, you can better navigate the circumstances that may lead to a party being discharged from their contractual obligations.
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1. Despite the expense, why might a business choose to mail a catalog?
Answers
Answer:
Catalogs can promote a business's brand by displaying them in high-traffic areas and distributing them in stores. Customers often have an idea of what they want to buy after looking through a catalog. But, they'll likely find other items they want to buy when they go online or to a brick-and-mortar store to order.
what is the goal of effective marketing research studies?
Answers
Answer:
The goal is to identify and assess how changing element of the marketing mix impact customer behavior.
if a binding price floor is imposed on the video game market, then a.a shortage of video games will develop. b.the supply of video games will increase. c.the demand for video games will decrease. d.a surplus of video games will develop.
Answers
Video game supply will rise if the market is subjected to a legally-binding price floor.
What exactly is the floor price?
The lowest permitted price that can be paid in a market for goods and services, labour, or financial capital is known as a price floor. The minimum wage is founded on the normative belief that someone working a full-time job should be able to afford a basic standard of living, making it perhaps the most well-known example of a decrease in price floor. The terms "price ceiling" and "price floor" are frequently used interchangeably in economics. Price Floor refers to selling each product at the actual minimum price, whereas Price Ceiling refers to the highest price that a seller may ask for a product.
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Answer:b the supply of video games will increase
Explanation:
A company using public relations sends information to media outlets such as newspapers and ratio stations. Who decides what Information about the company the outlets will publish?
Answers
Answer:
The media outlets should be correct
Explanation:
A P E X
Under what circumstances would it be unwise for the managers of double decker lanes, a local bowling alley, to drastically modify their company's strategy?
A. Changing market conditions
B. Advancing technology
C. Shifting customer needs
D. Mounting evidence that the current strategy is not working well
Answers
It be unwise for the managers of double decker lanes, a local bowling alley, to drastically modify their company's strategy under option E. desiring to mimic the strategy of Epicenter, a recent local entrant in bowling and gaming.
A protracted program you develop for your business to get to the desirable, long - term direction you picture is known as a strategy. A strategy encompasses your company's aims and objectives, the kinds of goods and services you intend to develop, the target market for your sales, and the consumers you wish to attract.
Many bowling alleys make more money if they are located in areas where families can afford a combined yearly household income of above $100,000. In contrast, it is anticipated that the children's entertainment centre industry would experience tremendous expansion in the future years.
The question is incomplete, find the complete question here
Under what circumstances would it be unwise for the managers of double decker lanes, a local bowling alley, to drastically modify their company's strategy?
A. Changing market conditions
B. Advancing technology
C. Shifting customer needs
D. Mounting evidence that the current strategy is not working well
E. desiring to mimic the strategy of Epicenter, a recent local entrant in bowling and gaming.
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6. Describe at least three things a bank would consider about you when deciding whether to give you a loan. (1-3 sentences. 3.0 points)
Answers
Explanation:
Your Credit History
Your Ability To Pay The Loan
Your Cash Flow History
Select all that apply.
Learning styles include all of the following:
bodily/kinesthetic
verbal/linguistic
naturalistic
personal
Answers
Answer:
bodily/kinesthetic
verbal/linguistic
Explanation:
Learning styles can be regarded as range of competing as well as contested theories which analyse
differences that exist learning of in individuals. It should be noted that the Learning styles includes
✓bodily/kinesthetic
✓verbal/linguistic
Answer:
verbal/linguistic
bodily/kinesthetic
naturalistic
Explanation:
checked answer on Odyssey
During times of a need, such as following a natural disaster, firms will overcharge for certain items or services, knowing customers will pay the higher cost due to lack of options. This unethical pricing practice is known as:.
Answers
The name of unethical practice that firms engage in when they overcharge for certain items or services is known as price gouging.
What is an Unethical Practise?This refers to the behavior which is shown to have no honor and respect for due process and is usually done in order to make a quick profit to the detriment of others.
Hence, we can see that when there are natural disasters or situations when there are uncertain situations, some firms actually overcharge for certain items or services, knowing customers will pay the higher cost due to a lack of options and this is known as price gouging.
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when determining how to allocate scarce resources an entrepreneur should
Answers
When determining how to allocate scarce resources, an entrepreneur should prioritize goals, evaluating the potential costs and benefits of different allocation decisions.
They need to analyze risks, considering market volatility and technological changes, while optimizing efficiency to maximize resource utilization. Continuous monitoring and adjustment are essential to ensure alignment with changing market dynamics.
Seeking expertise and advice from industry experts and mentors can provide valuable insights. Entrepreneurs should focus on strategic objectives, supporting growth, sustainability, and creating value for customers and stakeholders. By carefully considering these factors, entrepreneurs can make informed resource allocation decisions that contribute to the overall success and profitability of their business.
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question 1 in the initiation phase, a project manager performs research, consults with stakeholders, and clearly documents key project components. what does going through this process help them solidify?
Answers
Going through the initiation phase of a project helps the project manager to solidify the project's scope, objectives, and feasibility.
During the initiation phase, the project manager performs research and consultation with stakeholders to determine the goals, objectives, and requirements of the project. This helps to establish a clear understanding of the project's scope, including what needs to be achieved and how it will be achieved. Additionally, this process helps the project manager to identify potential risks and challenges that may arise during the project and evaluate whether the project is feasible within the available resources and time constraints. Ultimately, going through this process helps the project manager to develop a clear and comprehensive project plan that can be used to guide the project throughout its lifecycle.
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A video game system is on sale for 25% off its original price. If the original price is $200, how much money will be saved?
Answers
Answer:
$50
Explanation:
25% = 1/4
200 / 4 = 50
50*3=150, which is 25% off.
A 10 percent increase in income leads to a 15% decrease in the quantity of macaroni and cheese demanded. From this information, we can assume:
Answers
The information about the demand shows that macaroni is a normal good.
What is a demand?Demand is the amount of goods and services that a buyer wants to buy at a price and a given time.
Since a 10 percent increase in income leads to a 15% decrease in the quantity of macaroni and cheese demanded. Therefore, macaroni is a normal good and the price elasticity of demand is greater than 1.
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What type of business makes physical goods that customers can see or touch?
Internet service provider
banking industry
manufacturing industry
commodities industry
Answers
Manufacturing industry, type of business makes physical goods that customers can see or touch. Thus, option (c) is correct.
The term business refers to the earning the profit. The business is the taking the risk and the earning the profit. The business are the mainly focuses to the activity of the creating, distribution and selling concept based.
Manufacturing industry is a type of business that can produced the goods (product) are tangible form. Manufacturing industry produced two types of goods such as consumer goods and industrial goods. Customer can easily touch and feel the product.
As a result, the significance of the type of business makes physical goods that customers can see or touch are the aforementioned. Therefore, option (c) is correct.
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Professional Responsibilities: Responding to a Visitor's Question About Status of a Client
Answers
As a professional, it is important to be mindful of confidentiality and ethical considerations when responding to inquiries about the status of a client. In order to protect the privacy of the client, it is important to obtain their permission before discussing any information with a third party.
If a visitor inquires about the status of a client, it is important to respond in a professional and courteous manner. One way to do this is to inform the visitor that you cannot provide any information about the client without their consent. If the visitor is a family member or authorized representative of the client, you can ask for proof of their identity and authorization before providing any information.
It is important to remember that the client's privacy and confidentiality should be protected at all times. If you are unsure about how to respond to a visitor's question or if you have any concerns about confidentiality, it is best to consult with a supervisor or a legal professional for guidance.
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