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alina1380 [7]
2 years ago
9

Investment A produced annual rates of return of 4%, 8%, 14% and 6% respectively over the past four years. Investment B produced

annual rates of return of 5%, 12%, 8% and 11% respectively over the past four years. Which investment was more risky over the past 4 years?
Business
1 answer:
Ghella [55]2 years ago
8 0

Answer:

A

Explanation:

The investment A was more risky, but in general they were both pretty much a risk.

With both having a produced annual rates of return in under 10%

Reason for A being the riskier is that his annual rate of return in average was 8%, while B's annual rate was 9%

Difference may seem small, but for bigger investments 1% can be a deal breaker.

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Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow f
grandymaker [24]

Answer:

d. To find a project's IRR, we must solve for the discount rate that causes the PV of the inflows to equal the PV of the project's costs

Explanation:

The internal rate of return, will be the rate at which the net present value of a project is zero.

net present value = present value fo the cash inflow - investment

using the IRR on the cash inflow we have a present value equal to the investment made, which makes the net present value equal to zero.

Therefore, the IRR is the maximun rate the project can yield

6 0
3 years ago
When managing processes, it is vital that:
LekaFEV [45]

Answer:

c. attention is paid to competitive priorities and strategic fit.

Explanation:

Managing process is the top level activity it involves various activity and decisions for the growth of an organization. It clearly states that the company shall grow, what are the goals, what are the objectives and what are the strategies.

This clearly reflects that management's main concern is to strategic performance, and how does it create a space in the market share, as gaining from competitive advantage.

8 0
3 years ago
purchased equipment on January​1, 2018​,for $ 27 comma 419.Suppose Duck Pond Golf Club Sold the equipment for $ 19 comma 000 on
ale4655 [162]

Answer:

31 December 2019

Cash                                      19000 Dr

Accumulated depreciation  12186 Dr

            Equipment                        27419 Cr

            Gain on disposal              3767 Cr

Explanation:

Straight line depreciation method charges a constant depreciation expense through out the useful life of the asset.

To calculate the gain or loss on disposal/sale of an asset like this, we need to first determine the book value or carrying value of asset on that day.

Carrying value = Cost - Accumulated depreciation

Carrying value = 27419 - 12186

Carrying value = $15233

Gain or (loss) on disposal = Cash/Sale proceeds - Carrying Value

Gain or (loss) on disposal = 19000 - 15233

Gain or (loss) on disposal = $3767 Gain

3 0
2 years ago
The short-run break-even price A) is the price at which the firm's current liabilities are paid off. B) is the price at which a
kkurt [141]

Answer:

B. is the price at which a firm's total revenues equal total costs

Explanation:

The short run in economics is a period of time in which one factor of production is fixed and others are varied. In the short run, the market is not fully in equilibrium. Break even is the point in which the total cost used in the course of production is equal to the total revenue earned from the products produced. In a break even scenario, there is no profit and there is no loss. At this point, firms are making normal rate of return on money invested and are able to settle all cost of production.

8 0
3 years ago
The tables show the annual incomes for the citizens in two countries, Melka and Sorare. Use this information to answer the quest
masya89 [10]

Answer: The nation of Sorare

Explanation:

The Gini coefficient is a statistical measure that is used to measure income disparity/ inequality in a country.

The closer to zero the Gini coefficient is, the more equitable the income in a country is. Simply put, if more people in a nation have similar levels of income, the Gini coefficient will be smaller.

In the question, the nation of Sorare has two people earning a high amount of money while others make considerably less. This shows a high income disparity which means that the Gini coefficient here will be higher than in Melka where citizens mostly have similar incomes.

4 0
2 years ago
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