Answer:
Net Present Value for this project is -411,111.11
Explanation:
Net Present Value is the difference between present values of future cash flows and present value of future cash outflows. Since, the outflows are paid today, we don't need to discount them.
Since we have indefinite period of time and expected net cash inflow of 107,000$ after first year, where it is expected to grow annually at 3%, we can use following formula:
P V = F V / i-g, where g is annual growth rate of future cash inflow. Therefore, we will have P V = 1,188,888. In order to calculate N P V we need to calculate the difference between P V and initial investments. Finally, we get -411,111.11
Answer:
A. Reverse logistics systems are usually less cost- efficient than forward-based systems.
Explanation:
Reverse logistics is linked to the reuse of goods and services for all activities, this includes the management and the sale of surplus. Reverse logistics is the distribution of purchased products back into the business in the reverse direction of business process flow.
Reverse logistics systems are usually less cost- efficient than forward-based systems. Reverse logisticsprovides companies with revenues and strategic benefits.
Explanation:
All tenders should be submitted on the appropriate tender forms as issued by trasnet and as per instructions in the bid documentation
These changes in strategy are indicative of internal forces of change. Internal forces of change in business refer to events, people and systems inside a company that aid or prevent it from fulfilling short term as well as long term goals.
Answer:
r or expected rate of return - market = 0.14 or 14%
r or expected rate of return - stock = 0.2120 or 21.20%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the market risk premium
Under CAPM, the assumption follows that the beta of the market is always equal to 1.
So, expected return on the stock market will be,
r or expected rate of return - market = 0.06 + 1 * 0.08
r or expected rate of return - market = 0.14 or 14%
The beta of the stock is given. We calculate the required rate of return on the stock to be,
r or expected rate of return - stock = 0.06 + 1.9 * 0.08
r or expected rate of return - stock = 0.2120 or 21.20%
