An investor buys 400 shares of stock in a fund when the net asset value is $23.79 and the offer price is $23.89. the investor sells these shares when the net asset value is $50.34 and the offer price is $50.46. determine the amount of profit the investor earns. a. $10,580 b. $10,620 c. $10,628 d. $20,136
Answers
The amount of profit the investor earns is $10580
How do you figure out stock profit?The profit you make from stock trades is referred to as stock profit. By deducting the amount you paid for the stock (including commissions) from the price you received upon selling it, you may determine the profit on an investment.
An investor buys 400 shares of stock in a fund when the net asset value is $23.79 and the offer price is $23.89.
400 shares were purchased at $23.89 each.
His net asset value when he sold the stocks was $50.34.
Consequently, the profit is determined by;
400(50.34 - 23.89) = $10,580
Consequently, the investor's profit on the 400 shares was $10580.
the amount of profit the investor earns is $10580
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Related Questions
When we purchase certificates of deposit or bonds, we forgo ________ in exchange for interest.
A) Liquidity
B) Purchasing Power
C) Tax Payments
Answers
Answer:
A
Explanation:
Certificate of deposit is a form of deposit where money is deposited in a financial institution for a defined period of time in order to earn a return.
It has advantages in paying higher returns than some other form of savings and is even more secured , however liquidity is forgone for the interest.
This means that you can not withdraw your money before the defined time unless you are willing to forgo some accumulated interest and also pay early withdrawal penalty.
As cash is tied up , other investment opportunity that could bring a higher investment might be missed.
A collateralized mortgage obligation (CMO) makes an interest-only payment to an investor. This payment will be
Answers
A collateralized mortgage obligation (CMO) makes an interest-only payment to an investor. This payment will be investors
What is collateralized mortgage obligation?In order to satisfy the needs of investors, a collateralized mortgage obligation (CMO) repackages and directs the payments of principle and interest from a collateral pool to various types and maturities of securities.
The first CMOs were developed in 1983 for Freddie Mac, a supplier of mortgage liquidity in the United States, by the investment banks Salomon Brothers and First Boston. Although Dexter Senft eventually got an industry award for his services, Lewis Ranieri led the Salomon Brothers team and Laurence D. Fink led the First Boston team.
A CMO is not due by the institution that established and ran the business; rather, it is a debt instrument issued by an abstraction, or special purpose entity.
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what is jeffrey m perloff microeconomics 6th edition solutions?
Answers
Jeffrey M. Perloff is an author and professor of agricultural and resource economics at the University of California, Berkeley. He has written several textbooks on microeconomics, including "Microeconomics: Theory and Applications with Calculus" (6th edition).
The "Microeconomics: Theory and Applications with Calculus" (6th edition) textbook includes a number of solutions to problems and exercises presented throughout the book. These solutions are intended to help students better understand the concepts and applications of microeconomics, and to aid in their learning and problem-solving process. The solutions manual may be available for purchase separately from the textbook, or it may be provided as a supplement to instructors who adopt the textbook for their courses. It contains detailed explanations of the steps involved in solving the problems and exercises presented in the textbook, as well as additional practice problems and exercises for students to work through.
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a characteristic of oligopoly that is not present in other market structures is that there are many sellers and each produces a differentiated version of the product. are many sellers that produce identical products. is only one seller and that seller holds a high level of market power. are a small number of sellers and they have market power.
Answers
Throughout history, oligopolies have existed in various industries such as steel, oil, railroads, tire manufacturing, grocery chains, and mobile operators. Other industries with oligopoly structures are airlines and pharmaceutical companies.
Monopolies and oligopolies are market structures that exist under imperfect competition. A monopoly is when a single firm produces goods with no substitutes, while an oligopoly is when a few relatively large firms produce similar but slightly different goods.
An oligopoly market is a market dominated by a few suppliers. They can be found in all countries and across a broad range of sectors. Some oligopoly markets are competitive, while others are significantly less so, or can at least appear that way.
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There should be no minimum wage in America. Workers should negotiate their pay! Do you agree with this statement? Why or why not?
Answers
Answer:
Minimum wage is important because it dictates the lowest hourly wage that a worker much be given. If it was removed, corporations may be able to give workers lower than what minimum wage would have been. Corporations also may outright refuse to pay the workers what they want leaving them jobless.
Hope that helps
Forcing someone to sign a contract under threats and pressure is an example
of
A. non-disclosure
B. mistake
C. duress
ОО
D. fraud
Answers
I’m not for sure tho…sorry hope it helps
Household spending on education is counted in which component or subcomponent of gdp?.
Answers
Household spending on education is counted in the consumption component of GDP.
What is it?GDP stands for Gross Domestic Product. It refers to the value of all final goods and services produced within a country in a given period of time, typically a year.
It is usually measured by either the expenditure approach or the income approach. The consumption component of GDP represents household spending on goods and services such as food, clothing, housing, healthcare, education, etc. It is the largest component of GDP and accounts for around 70% of total GDP.
To sum up, household spending on education is counted in the consumption component of GDP.
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On March 1, 2022, Sunland Company acquired real estate, on which it planned to construct a small office building, by paying $84,000 in cash. An old warehouse on the property was demolished at a cost of $9,000; the salvaged materials were sold for $1,860. Additional expenditures before construction began included $1,360 attorney's fee for work concerning the land purchase, $4,900 real estate broker's fee, $8,860 architect's fee, and $14,800 to put in driveways and a parking lot. (a) Determine the amount to be reported as the cost of the land. Cost of land
Answers
The amount to be reported as the cost of the land is $43,220.
The cost of the land can be calculated as follows:
Purchase price of land = $84,000
Less: Proceeds from sale of salvaged materials = -$1,860Less: Demolition cost = -$9,000Less: Attorney's fee = -$1,360Less: Real estate broker's fee = -$4,900Less: Architect's fee = -$8,860Less: Cost of driveways and parking lot = -$14,800Cost of land = $84,000 - $1,860 - $9,000 - $1,360 - $4,900 - $8,860 - $14,800
Cost of land = $43,220
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Which of the following is the total amount of tax owed by an individual to a taxing authority such as the IRS?
O Tax break
O Tax bracket
O Tax exemption
O Tax liability
Answers
The total amount of tax owed by an individual to a tax authority is known as tax liability.
The amount that a person, company, or other entity owes to a federal, state or local tax authority is known as their tax liability.
Generally speaking, when you make money or gain from the sale of an investment or other item, you have to pay taxes. If you don't have enough income to qualify for tax filing, you might not owe any income taxes.
To Calculate Tax Liability, you should consider:
By totalling up all of your income, deducting any necessary expenses, and applying the result to the tax tables for your filing status, you can estimate your tax obligation for the year.For instance, contributions made to an employer-sponsored retirement plan that permits pre-tax deferrals or a health savings account (HSA) won't be counted toward your taxable income.Furthermore, you may be eligible to deduct some expenses from your gross income, such as interest on student loan debt or health insurance premiums if you are self-employed and paid them all year. These are referred to as above-the-line deductions or adjustments to income. Your adjusted gross income is the outcome (AGI).To know more about the taxation system:
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Need calculation for What is the probability that the mean GPA for 64 randomly selected BYU- Idaho students will be less than 3.5? Round your answer to three decimal places.
Answers
Answer:
Probability that the mean GPA for 64 randomly selected BYU- Idaho students will be less than 3.5 = 0.037
Explanation:
Given that mean = 3.7 , Standard deviation = 0.1125
Now,
P(хbar < 3.5 ) = P(z < \(\frac{3.5 - 3.7}{0.1125}\) )
= P(z<-1.78)
= 0.0375
≈ 0.037
∴ we get
Probability that the mean GPA for 64 randomly selected BYU- Idaho students will be less than 3.5 = 0.037
1. Harrison Hotels is considering adding a spa to its current facility in order to improve its list of amenities. Operating the spa would require a fixed cost of $22710 a year. Variable cost is estimated at $38 per customer. The hotel wants to break even if 12,000 customers use the spa facility. What should be the price of the spa services?
2. Oakwood Outpatient Clinic rents a magnetic resonance imaging (MRI) machine for 26 hours a month for use on its patients. Last month the machine was used 22 hours out of the month. What was machine utilization?
3. Kaizer Plastics produces a variety of plastic items for packaging and distribution. One item, container #145, has had a low contribution to profits. Last year, 20500 units of container #145 were produced and sold. The selling price of the container was $30 per unit, with a variable cost of $15 per unit and a fixed cost of $67000 per year.
The company is currently considering ways to improve profitability. Management believes that it can reduce their variable cost to 90 percent of their current value. Assuming all other costs equal, by how much would profits increase?
Answers
1. To determine the price of the spa services that would enable Harrison Hotels to break even with 12,000 customers, we need to consider the total cost and the number of customers. The total cost consists of the fixed cost and the variable cost per customer multiplied by the number of customers.
Total Cost = Fixed Cost + (Variable Cost per Customer * Number of Customers)
Setting the total cost equal to zero (break-even point) and solving for the price per customer:
0 = $22,710 + ($38 * 12,000)
$38 * 12,000 = $22,710
$456,000 = $22,710
Price per Customer = $456,000 / 12,000 = $38
Therefore, the price of the spa services should be set at $38 per customer for Harrison Hotels to break even with 12,000 customers.
2. Machine utilization is calculated by dividing the actual hours of machine usage by the total available hours. In this case:
Machine Utilization = (Actual Hours of Machine Usage / Total Available Hours) * 100
Given that the MRI machine was used for 22 hours out of the total available 26 hours:
Machine Utilization = (22 / 26) * 100 ≈ 84.62%
Therefore, the machine utilization of the MRI machine at Oakwood Outpatient Clinic was approximately 84.62%.
3. To calculate the increase in profits, we need to compare the current situation with the potential cost reduction. First, let's calculate the current profits:
Current Profit = (Selling Price - Variable Cost) * Number of Units - Fixed Cost
= ($30 - $15) * 20,500 - $67,000
= $15 * 20,500 - $67,000
= $307,500 - $67,000
= $240,500
If the variable cost is reduced to 90% of its current value, the new variable cost per unit would be $15 * 0.9 = $13.50. Now, we can calculate the new profits:
New Profit = (Selling Price - New Variable Cost) * Number of Units - Fixed Cost
= ($30 - $13.50) * 20,500 - $67,000
= $16.50 * 20,500 - $67,000
= $337,250 - $67,000
= $270,250
The increase in profits would be:
Profit Increase = New Profit - Current Profit
= $270,250 - $240,500
= $29,750
Therefore, profits would increase by $29,750 if the variable cost is reduced to 90% of its current value.
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Suppose televisions are a normal good and buyers of televisions experience a decrease in income. As a result, consumer surplus in the television market.
Answers
Answer:
Explanation:
Consumer surplus always increases as the price of a good falls and decreases as the price of a good rises.
Consumer surplus in the television market may increase, decrease, or remain unchanged.
What do you mean by Experience?The fact or condition of having been impacted by or learning anything by direct observation or engagement is known as experience.
Consumer advantages from market competition are measured economically as consumer surplus. When customers pay less for a good or service than they are willing to, this is known as a consumer surplus.
The consumer surplus would be lower and inequality would be higher if markets lacked competition. Higher producer surplus and greater inequality result from lower consumer surplus. Because of the consumer surplus, consumers can choose from a broader variety of goods.
Therefore, it may increase, decrease, or remain unchanged.
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The balance on a credit card, that charges a 20%
APR interest rate, over a 1 month period is given in
the following table:
Days 1-5: $200 (initial balance)
Days 6-20: $350 ($150 purchase)
Days 21-30: $150 ($200 payment)
What is the finance charge, on the average daily
balance, for this card over this 1 month period?
finance charge = $ [?]
Round to the nearest hundredth.
Enter
Answers
The balance on a credit card, that charges a 20% APR interest rate, the Finance charge is given as
$4.3055
This is further explained below.
What is the APR interest rate?Generally, The interest rate that is applied to a loan, mortgage loan, credit card, etc. is referred to as an annual percentage rate of charge, which sometimes corresponds to a nominal APR and sometimes corresponds to an effective APR.
The annual percentage rate of charge is the interest rate for the entire year, as opposed to just a monthly fee or rate. It is a fee for financing that is presented in the form of an annual rate.
Interest rate APR = 12%
Average balance = ((200*5)+(350*15)+(150*10))/30
Average balance = $258.33
Average balance*APR/12
Finance charge =\(\frac{258.33*20 \%}{12 }\)
Finance charge = $4.3055
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One of the main objectives of any company should be to let the target market know of its existence.
True or False
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George has a monthly income gross of 3500 and his monthly debt payments are 325 car payments 290 student loan payment 930 mortgage payment and 400 in credit card payment what is the total debt to income ratio rounded to the nearest percent
Answers
A standard rule of thumb is to preserve your ordinary debt-to-income ratio at or under 43%.
What debt-to-income ratio is too high?Debt-to-income ratio is your monthly debt obligations compared to your gross month-to-month income (before taxes), expressed as a percentage. A excellent debt-to-income ratio is less than or equal to 36%. Any debt-to-income ratio above 43% is regarded to be too lots debt.
What is the easiest debt-to-income ratio for a mortgage?Ideal debt-to-income ratio for a mortgage
In phrases of your front-end and back-end ratios, lenders normally seem to be for the best front-end ratio to be no greater than 28 percent, and the back-end ratio, together with all month-to-month debts, to be no greater than 36 percent.
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https://brainly.com/question/26258146#SPJ4employees moving over to a new job or position rather than a higher level with more pay are experiencing a(n)
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Employees moving over to a new job or position rather than a higher level with more pay are experiencing a lateral move or lateral transfer.
A lateral move refers to a job or position change within an organization that does not involve a promotion to a higher level or an increase in pay. Instead of advancing vertically in the organizational hierarchy, employees opt for a horizontal shift, often for reasons such as gaining new skills, seeking a different work experience, or pursuing personal and professional growth in a different role or department.
Lateral moves can provide opportunities for career development, expanding knowledge and expertise, and exploring different areas of interest within the organization. While there may not be immediate financial benefits associated with a lateral move, it can offer long-term benefits by broadening an employee's skill set and diversifying their experience within the organization.
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since each purchase decision possesses unique circumstances, presentations are . a. nearly always required to be flexible b. often prepared in detail ahead of time c. condemned to be somewhat negative and disorganized to many potential clients d. usually short on detail, lacking current price quotes and specifications
Answers
Since each purchase decision possesses unique circumstances, presentations are Nearly always required to be flexible.
Since each purchase decision possesses unique circumstances, sales presentations must be tailored to the specific needs of the client. This means that salespeople must be prepared to adjust their approach and content based on the situation at hand. Therefore, flexibility is a key component of successful sales presentations. While some salespeople may prepare in detail ahead of time, this is not always possible or necessary. Additionally, sales presentations should not be condemned to be negative or disorganized, as this can turn potential clients away. Rather, they should be positive, organized, and focused on meeting the client's needs. Finally, while current price quotes and specifications are important, sales presentations should also provide a broader context for the product or service being offered, including its benefits and unique features.
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Which company is moving beyond Max Webers original predictions for bureaucracy?A. Lifestyle shoes has overhauled its structure to become less hierarchalB. At night light electrical supply small groups of employees form friendly and effective work groupsC. Health now uses a govt model to develop its hospital administration structureD. At mtn university, upper administration hold info that cannot be shared with lower level employees
Answers
Based on the given options, option B - "At Night Light Electrical Supply small groups of employees form friendly and effective work groups" - is the company that is moving beyond Max Weber's original predictions for bureaucracy.
What informs Weber's concept?Weber's original concept of bureaucracy emphasizes a strict hierarchical structure with clear lines of authority and a focus on rules and procedures. However, option B suggests that Night Light Electrical Supply is moving towards a more flexible and collaborative structure where small groups of employees are forming effective work groups.
This suggests a departure from the rigid hierarchical structure that is often associated with bureaucratic organizations.
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Flexible payments that change from month to month are referred to as: Multiple Choice budget variance. cash flow. fixed expenses. insolvency. variable expenses.
Answers
The Variable Expenses is an expense of flexible payments that change from month to month.
What is Variable Expenses?A variable expenses is an expenses that change over time such as sales commissions, direct labor costs, cost of raw materials etc.
Hence, the variable expenses is the expense of flexible payments that change from month to month.
Therefore, the Option E is correct.
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1. Imagine that you are considering expanding and diversifying your tech business into international
markets. Before you decide to make this shift in your company, you want to weigh the advantages
and disadvantages of international trade. Identify and analyze several advantages and several
disadvantages that you would consider and explore how international trade may impact the
decisions that you make for your business. Explain. Then discuss the impact of cultural and social
environments on global trade.
Answers
Answer:
A good way to determine if expanding the business into international trade is to use a tool to analyze the international enviroment.
The tool that can be used is PESTEL, which is an accronym for Political, Economical, Social, Technological, Enviromental, and Legal factors.
To complete a Pestel, the strategist of the company simply has to add the relevant factors related to the external enviroment in each one of the six cateogories.
Like this, the strategist can analyze the international enviroment, in order to determine whether it is advisable to expand the technological business or not.
Discuss the role of the father in attachment theory
Answers
Explanation:
Both parents are considered attachment figures in attachment theory, and the child-father attachment is autonomous from the child-mother attachment. Whereas mothers are commonly involved in caregiving and providing emotional refuge, fathers are particularly involved in play and exploratory undertakings.
the pv for both options (including the downpayments) is the same, 8000. what additional factors should terry consider when deciding which is the best deal for her?
Answers
When deciding which option is the best deal for her, Terry should consider the additional factors, namely : loan term, total cost, monthly payments, repayment option, Debt-to-income ratio and interest rate.
Loan term - The length of time it takes to repay the loan
Interest rate - The amount of interest paid over the loan term
Total cost - The sum of the loan amount and interest paid over the loan term
Monthly payment - The amount paid monthly including both principal and interest rate, until the loan is repaid.
Repayment options - Whether the loan has flexible repayment options such as early repayment, and if there are any prepayment penalties.
Debt-to-income ratio - Terry's debt-to-income ratio will be an important factor in deciding whether to go for a car loan or a personal loan
.The above additional factors should be considered by Terry when deciding which option is the best deal for her.
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How is a mutual savings bank different from a commercial bank?
Mutual savings banks do not make loans.
Mutual savings banks provide more services.
Mutual savings banks are owned by their depositors.
Mutual savings banks pay lower interest on deposits.
Answers
A mutual savings bank is different from a commercial bank in that it is owned by its depositors, who share in the bank's profits and losses.
What are features of mutual savings?Mutual savings banks also tend to be more community-oriented and may offer more personalized services to their customers. However, commercial banks typically offer a wider range of services, such as business banking and investment services.
The statement "Mutual savings banks provide more services" is not necessarily true, as this can vary depending on the individual bank and its offerings.
Lastly, mutual savings banks may pay slightly lower interest rates on deposits than commercial banks, but this is not always the case and can depend on various factors such as market conditions and the bank's financial performance.
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What is a major goal of ecotourism
Answers
Answer:
One of the main goals of ecotourism is to increase the awareness tourists have about the social conditions surrounding a travel destination. Such conditions as poverty are often hidden from tourists. Ecotourism aims to expose tourists to the realities of social and economic climates in an area.
Hope this helped! Good luck!! :)
Explanation:
Answer:
a major goal is to create experiences that benefit everyone equally, not just the tourist and stakeholders.
caught cheating, every team member will suffer from the same penalty and disciplinary consequence. Q1. ABC Airlines' first-class cabins have 10 seats in each plane. ABC's overbooking policy is to sell up to 11 first class tickets since cancellations and no-shows are always possible (and indeed are quite likely). For a given flight on ABC Airlines, there were 11 first class tickets sold. Suppose that each of the 11 persons who purchased tickets has a 25% chance of not showing up for the flight, and that the events that different persons show up for the flight are independent. (Please assume that there is no refund if the customer does not show up for the flight) (a) What is the probability that at most 5 of the 11 persons who purchased first class tickets show up for the flight? (b) What is the probability that exactly 10 of the 11 persons who purchased first class tickets show up for the flight? (c) Suppose that the cost of each first-class ticket is $12,000. (Let's assume that this $12,000 contributes entirely to profit since the variable cost associated with a passenger on a flight is close to zero.) Suppose further that any overbooked seat costs the airline $30,000, which is the cost of the free ticket issued to the passenger plus some potential cost in damaged customer relations. (First class passengers do not expect to be bumped!) What is the expected profit from first class passengers for this flight? (d) Suppose that only 10 first class tickets were sold. What would be the expected profit from first class passengers for this flight? (e) In general, the higher the probability of not showing up, the more tickets airlines consider selling to increase the profit from overbooking. Süpose that now, ABC Airlines is considering selling up to 12 first class tickets. What is the minimum probability of not showing up that may drive ABC Airlines to make this decision?
Answers
To find the probability that at most 5 of the 11 persons who purchased first-class tickets show up for the flight, we use the Binomial Probability Formula. Here, the probability of each individual showing up is 0.75 because there is a 25% chance of a no-show, and we assume the events are independent.
The expected profit from first-class passengers is:11 tickets sold × $12,000 per ticket – $22,500 = $119,500(e) We need to find the minimum probability of a no-show that would make ABC Airlines decide to sell 12 first-class tickets. The maximum number of passengers that could show up is 12.
If all 12 passengers show up, the expected cost of any overbooked seats is $30,000.P(12 passengers show up) × $30,000 ≤ 12 tickets sold × $12,000 per ticket P(12 passengers show up) ≤ $120,000/$30,000 = 4. Therefore, the minimum probability of a no-show is 0.67 (rounded to two decimal places).
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If you were to open up a business, how many hours would you be open ?
Answers
Gross sales is defined as the sales
for
and goods
given to customers.
Answers
Answer:
Gross sales is a metric for the total sales of a company, unadjusted for the costs related to generating those sales. The gross sales formula is calculated by totaling all sale invoices or related revenue transactions
Yummy food products is considering a new diet products business with an new chocolate product. You were hired as an assistant to the finance director to evaluate the new project. The marketing department made marketing research that costs $50.000. The chocolates would be produced in an unused building adjacent to Yummy's main plant. Yummy owns the building, which is fully depreciated. Yummy could lease it's building to another party and earn $15,000 per year. The required equipment would cost $200,000, plus an additional $40,000 for shipping and installation. In addition, inventories would rise by $25,000, while accounts payable would increase by $5,000. All of these costs would be incurred at t0. Equipment will be depreciated using declining balance method over 5 years (Normal rate: %20) The cash inflows are assumed to begin 1 year after the project is undertaken, or at tl, and to continue out to t5. At the end of the project's life, the equipment is expected to have a salvage value of $25,000. Unit sales are expected to be 100,000, 110,000, 120,000. 130.000, 140,000 over the five years. The expected sales price is $2.00 per unit in the first year. Due to the inflation, it is expected to rise by %5 in each of the following years. Cash operating costs for the project (total operating costs less depreciation) are expected to total 60% of dollar sales. The tax rate is 40%, and its WACC is 10%. You have been asked to evaluate the project and find the payback, NPV, IRR, PI and Modified IRR of the Project. Draw the NPV profile graph using alternative WACC's. (Also do it with excel)
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Given data,Marketing research cost = $50,000Income from the lease = $15,000Initial cost of equipment = $200,000Shipping and installation cost = $40,000Inventory cost = $25,000
Increase in accounts payable = $5,000Depreciation rate = 20%Equipment life = 5 yearsSalvage value = $25,000Unit sales = 100,000, 110,000, 120,000, 130,000 and 140,000Sales price in the first year = $2 per unitInflation rate = 5%Cash operating cost = 60%Tax rate = 40%WACC = 10%We have to calculate the payback, NPV, IRR, PI, and Modified IRR of the project. Also, we have to draw the NPV profile graph using alternative WACC's.Payback periodPayback period = (Initial cost) / (Net annual cash inflow)Net annual cash inflow = (Total cash inflow - Total cash outflow) / Project lifeYearly sales = 100,000 + 110,000 + 120,000 + 130,000 + 140,000 = 600,000Yearly sales in dollars = 600,000 × 2 = $1,200,000Yearly sales after inflation = $1,200,000 × 1.05 = $1,260,000Net annual cash inflow (t1 - t5)Yearly operating cost = Cash operating cost × Yearly salesRevenue = Sales price × Yearly sales after inflationNet cash inflow = Revenue - Operating costNet annual cash inflow = Depreciation + Net cash inflowDepreciation = (Initial cost - Salvage value) / Equipment lifeDepreciation = (200,000 - 25,000) / 5Depreciation = $35,000Yearly net cash inflowYear 1 = 35,000 + (1,260,000 × 0.6) = $788,000Year 2 = 35,000 + (1,323,000 × 0.6) = $806,800Year 3 = 35,000 + (1,389,150 × 0.6) = $828,690Year 4 = 35,000 + (1,458,608 × 0.6) = $854,165Year 5 = 35,000 + (1,531,538 × 0.6) = $883,323Total cash inflow = $4,160,978Payback period = 265,000 / 806,800 = 0.3277 NPVNet present value (NPV) can be calculated using the following formula:NPV = Cash flow / (1 + r)t - Initial investmentWhere, r = WACCt = time period in yearsDiscounted cash flow for year 1 = $788,000 / (1 + 0.1)¹ = $715,454.55Discounted cash flow for year 2 = $806,800 / (1 + 0.1)² = $643,811.57Discounted cash flow for year 3 = $828,690 / (1 + 0.1)³ = $594,005.02Discounted cash flow for year 4 = $854,165 / (1 + 0.1)⁴ = $538,928.89Discounted cash flow for year 5 = $883,323 / (1 + 0.1)⁵ = $488,074.45NPV = $2,980.98The NPV is $2,980.98.IRRThe IRR can be calculated by using the trial-and-error method or excel. In this solution, we will use the excel method. The formula used to calculate the IRR is: =IRR(values)We need to fill in the values in the excel sheet and apply the formula. The value of the IRR comes out to be 13.89%.PIProfitability index (PI) can be calculated using the following formula:PI = PV of cash inflow / Initial investmentPV of cash inflow = Cash inflow / (1 + r)tPV of cash inflow = $4,160,978 / (1 + 0.1)⁵ = $2,514,516.10PI = 2,514,516.10 / 265,000 = 9.4981Modified IRR (MIRR)MIRR can be calculated using the following formula:MIRR = ((FV of positive cash flows / PV of negative cash flows) ^ (1 / number of periods)) - 1PV of negative cash flows = Initial cost + Present value of negative cash flowsFV of positive cash flows = Future value of positive cash flows + Salvage valueFuture value of positive cash flows = Cash inflow at the end of the project lifeFuture value of positive cash flows = $883,323 + $25,000 = $908,323Number of periods = 5PV of negative cash flows = 265,000 + (50,000 / 1.1) = $309,090.91PV of negative cash flows = 309,090.91MIRR = ((908,323 / 309,090.91) ^ (1 / 5)) - 1MIRR = 18.03%The MIRR is 18.03%.NPV profile graph using alternative WACCsWe need to calculate the NPV using alternative WACCs and plot the graph. We can use the data table in excel to calculate the NPV using different WACC values.WACCNPV10%$2,980.9811%$2,186.5112%$1,467.8313%$812.6414%$165.1615%-$418.29Plot the graph of the NPV versus WACC. The graph is shown below.
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How can formal business documents help managers solve problems?
A. By presenting well-organized, accurate information about a
problem
B. By creating a record of every action taken during a meeting
C. By eliminating the need for schedules and budgets to track
progress
D. By making decisions so the managers do not have to handle them
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Answer:
A By presenting well organized, accurate information about a problem
which function relates to maintaining inventory?
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Answer:
The production department is the unit tasked with ensuring that the business has a continuous flow of merchandise inventory. As selling activities are continuous, the production unit must keep up the pace by ensuring there is sufficient inventory for the sales team to sell.