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attashe74 [19]
4 years ago
9

Generally speaking, the _______ the risk, the _______ the potential return or loss

Business
1 answer:
alina1380 [7]4 years ago
6 0
<span>Generally speaking, risk and rate-of-return are directly related. As the risk level of an investment increases, the potential return usually increases as well. The pyramid of investment risk illustrates the risk and return associated with various types of investment options. As investors move up the pyramid, they incur a greater risk of loss of principal along with the potential for higher returns.</span>
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given a cost of 70,000 now year 0 15,000 in year 10 an annual cost of 2000 and an annual revenue of 15,000 over 20 years n what
Damm [24]

Answer:

The maximium cost I would be willing to purchase the asset is 26.033,84‬ above this price the investment will not yield the 6% return.

Explanation:

We calcualte the present value of all cash flows:

annual cashflow:

15,000 revenue - 2,000 expenses = 3,000

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 3,000.00

time 20

rate 0.06

3000 \times \frac{1-(1+0.06)^{-20} }{0.06} = PV\\

PV $34,409.7637

Pv of the 10th year investment:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $15,000.0000

time  10.00

rate  0.06000

\frac{15000}{(1 + 0.06)^{10} } = PV  

PV   8,375.9217

present value of the cashflow

34,409.7637 - 8,375.92 = 26.033,84‬

3 0
4 years ago
Crow earned $585.15 during the week ended March 1, 20--. Prior to payday, Crow had cumulative gross earnings of $4,733.20. Round
hram777 [196]

Answer:

A. $36.28

B. $8.48

Explanation:

a. Calculation for the amount of OASDI taxes to withhold from Crow's pay

OASDI taxes is 6.2%

Hence,

OASDI taxes to withhold = 585.15*0.62

OASDI taxes to withhold = $36.28

Therefore the OASDI taxes to withhold from Crow's pay is $36.28

b. Calculation for the amount of HI taxes to withhold from Crow's pay

HI taxes is 1.45%

Hence,

HI taxes to withhold =585.15*0.0145

HI taxes to withhold=$8.48

Therefore HI taxes to withhold from Crow's pay is $8.48

6 0
3 years ago
For any country, if the world price of zinc is higher than the domestic price of zinc without trade, that country should a.neith
zysi [14]

Answer:

c.export zinc, since that country has a comparative advantage in zinc.

Explanation:

In the case when the zinc world price is more than the domestic zinc price without trade so the country should export the zinc as the company would have the comparative advantage. Here high price menas the international demand is more than the domestic demand due to which the country could earn more profits

4 0
3 years ago
In addition to rising healthcare costs a major factor promoting organizational interest in employees' well-being is:______
Zolol [24]

Answer: d. Shortage of skilled workers

Explanation:

Companies these days are more inclined to take an interest in the well-being of employees in an effort to keep the employees satisfied so that they stay with the company as opposed to having to find new employees to hire.

This is because there is a shortage of skilled workers which means that companies has to work to keep the skilled workers they have as opposed to having to find lesser quality ones and one way to do so is to show an interest in employee wellbeing to entice them to stay.

7 0
3 years ago
According to the video, what are some examples of sales promotions? Check all that apply. customer service discount coupons repo
Sveta_85 [38]

Answer:

what video

Explanation:

7 0
4 years ago
Read 2 more answers
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