The expected average rate of return in the fixed asset above is 36.92%. The rate of return is the income or loss of a proposed investment in a specified amount of time. In this case, a company wants to buy a 4-year life fixed asset which can increase the company's income by $240,000. We can calculate the rate of return by dividing the net income from the investment with the proposed investment to obtain the portion of return received from the investment<span>. Formula: (Net Income From The Investment/Proposed Investment) x 100%.</span>
Answer:
The major theorists considered to have prepared the ground for Humanistic Psychology are Otto Rank, Abraham Maslow, Carl Rogers and Rollo May. Maslow was heavily influenced by Kurt Goldstein during their years together at Brandeis University. Psychoanalytic writers also influenced humanistic psychology. i hope this helps
Explanation:
Answer:
32
Explanation:
Using Formula
Cost + (Cost*Margin) = Selling Price
Cost is not known...
Cost (1 + Margin) = Selling Price
Cost = Selling Price / 1 + Margin
Here, Margin is 0.45 of cost and selling price is 46.4
Cost = 44.4 / 1.45
Cost = 32
Climate Change is the first trend that is expected to cause more natural disasters. This has been facilitated by global warming caused by increased green house gases. Food prices are expected to rise due to high temperatures that has affected corn and soybean. Floods and storms are now becoming unpredictable.
There is high control of oil, gas and food prices by financial markets. Commodities traders are now setting prices instead of supply and demand thus the value of dollar in under the control of foreign exchange traders.
Increasing rates of interest, where recently the Federal Reserve wants to increase the Fed fund rates to two percent point. Inflation will be at 2% and unemployment at 4% thus this will show <u>a no falling to recession situation</u> which will allow Fed to keep increasing rates.In the long run cost of loans will rise.
Other trends to notice are;the decline in global economic power of the U.S and the fact that the U.S economy is current in the expansion phase of the business cycle.
Answer:
You should be willing to pay $984.93 for Bond X
Explanation:
The price of a bond is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are to be paid annually and the proceeds from the sale of the bond at the end of year 5.
During the 5 years, there are 5 equal periodic coupon payments that will be made. Given a par value equal to $1,000 and a coupon rate equal to 11% the annual coupon paid will be 
= $110. This stream of cash-flows is an ordinary annuity.
The PV of the cash-flows = PV of the coupon payments + PV of the value of the bond at the end of year 5
Assuming that at the end of year 5 the yield to maturity on a 15-year bond with similar risk will be 10.5%, the price of the bond will be equal to :
110*PV Annuity Factor for 15 periods at 10.5%+ $1,000* PV Interest factor with i=10.5% and n =15
= ![110*\frac{[1-(1+0.105)^-^1^5]}{0.105}+ \frac{1,000}{(1+0.105)^1^5}](https://tex.z-dn.net/?f=110%2A%5Cfrac%7B%5B1-%281%2B0.105%29%5E-%5E1%5E5%5D%7D%7B0.105%7D%2B%20%5Cfrac%7B1%2C000%7D%7B%281%2B0.105%29%5E1%5E5%7D%20)
=$1,036.969123
therefore, the value of the bond today equals
110*PV Annuity Factor for 5 periods at 12%+ $1,036.969123* PV Interest factor with i=12% and n =5
= ![110*\frac{[1-(1+0.12)^-^5]}{0.105}+ \frac{1,036.969123}{(1+0.12)^5}](https://tex.z-dn.net/?f=110%2A%5Cfrac%7B%5B1-%281%2B0.12%29%5E-%5E5%5D%7D%7B0.105%7D%2B%20%5Cfrac%7B1%2C036.969123%7D%7B%281%2B0.12%29%5E5%7D%20)
=$984.93
