Answer:
E $75
Explanation:
Using CAMP we solve for the Cost of equity on each and determinate which project are worht to invest on it
A
risk free = 0.045
rate premium market = (market rate - risk free) = 0.055
beta(non diversifiable risk) = 0.93
Ke 0.09615 = 9.615%
A 9.615% - 2.00% = 7.615% As the return is 7.60% we should <em>reject</em>
B 9.615% - 1% = 8.615% return of 9.15% we should <u>Accept</u>
C return of 10.10% while Ke 9.615% <u>Accepted</u>
D 9.615% + 1% = 10.615% return of 10.40% <em>rejected</em>
E 9.615% + 2% = 11.615% against 10.80% yield <em>rejected</em>
F cost of 11.615% ith return of 10.90% <em>rejected</em>
G cost of 11.615% with return of 13.00% <u>Accepted</u>
We accept three projectthus, we require $75
Because the audience needs that trust from you that you are presenting correct information, therefore you need to listen to them because they believe that they have correct information.
Answer:
-0.0246 or -2.46%
Explanation:
The duration 't' of his investment is:
The future value ($10,668,500) of an initial investment ($12,700,500) at a rate 'r' for a period of 7 years is given by:
![10,668,500=12,700,500*(1+r)^7\\1+r=\sqrt[7]{\frac{10,668,500}{12,700,500}}\\1+r=0.9754\\r=-0.0246=-2.46\%](https://tex.z-dn.net/?f=10%2C668%2C500%3D12%2C700%2C500%2A%281%2Br%29%5E7%5C%5C1%2Br%3D%5Csqrt%5B7%5D%7B%5Cfrac%7B10%2C668%2C500%7D%7B12%2C700%2C500%7D%7D%5C%5C1%2Br%3D0.9754%5C%5Cr%3D-0.0246%3D-2.46%5C%25)
His annual rate of return was -0.0246 or -2.46%.
*A negative rate of return means that money was lost in this investment
Answer:
(c). no longer satisfies a sufficient number of customers
Explanation:
Product deletion refers to removal or discontinuance of a product from the product line when such a product has been consistently incurring losses since a number of years and it's further continuation would adversely affect the other products and profitability.
A product is usually deleted from the product line on the grounds of it's failure in satisfying a sufficient number of customers.
Hence, the correct option is (c). no longer satisfies a sufficient number of customers.
