Answer:
Multiple IRRs:
Said another way, Multiple IRRs occur when a project has more than one <em>internal rate of return.</em> The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).
Internal rate of return (IRR) is one of the most commonly used capital budgeting tools. Investors make decisions by comparing the IRR of the project under consideration with the <em>hurdle rate</em>. If the IRR is greater than the hurdle rate, the project is accepted, otherwise it is rejected. When there are more than two IRRs, it is not exactly clear which IRR to compare with the hurdle rate.
Hurdle rate is the minimum required rate of return which businesses use as a benchmark to decide whether to invest in a project or not.
<em>So a typical situation which can generate negative cashflows which can in turn lead to multiple IRRs towards the end of the project is where the conditions of investment become adverse towards the end of the project.</em>
Imagine that toward the end of the lifecycle of a project, a forecasted increase external costs such as Interest Rate, influenced by government policies translates to an erosion of the bottom line generated by the business in that year.
Period 0 1 3 3 4 5
Unconventional cash flows ($)-19,000 16,000 16,000 6,000 6,000 -52,000
The series is non-conventional cash-flow pattern, which has two sign changes. This is the range in which the net present value of the non-conventional cash flow series is positive. The multiple IRR problem poses a series problem to analysts because the decision is not obvious.
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Answer:
Risk free rate(Rf) = 1.5%
Market return(Rm) = 8%
Beta(β) = 0.8
ER(P) = Rf + β(Rm – Rf)
ER(P) = 1.5 + 0.8(8-1.5)
ER(P) = 1.5 + 0.8(6.5)
ER(P) = 1.5 + 5.2
ER(P) = 6.7%
Alpha = Annual average return - ER(P)
= 7.2% - 6.7%
= 0.5%
Explanation:
In this case, we will calculate the expected return on the stock based on CAPM. Thereafter, we will calculate alpha by deducting the expected return from annual average return.
Answer:
The correct answer is active.
Explanation:
Flexibility is the only physical capacity that does not evolve with age, but quite the opposite, since after two months of age the loss of this quality begins. Therefore, exercising it will be essential to avoid loss as much as possible.
Active flexibility: it is the maximum amplitude of a joint or movement that a person can reach without external help, which only happens through the voluntary contraction and distension of the muscles of the body.
Answer:
No formal education required
Explanation:
In many countries, the roofer works with a license. But to be a roofer, you don't need any formal education.
The training is done on the spot, the beginner is learning from other experienced roofers. To qualify for the job of a roofer, a person has to be at least 18 years old, to have a high school diploma and be physically able.
The following methods can be used to successfully win back customers after they have discontinued service.
<h3>Successfully Re-engage Customers:</h3>
- Consider the primary cause of the customer's initial reluctance. Take some time to consider what drove your brand to this point before developing unique methods for your re-engagement plan.
- Surveying your consumers is one of the finest ways to find the answers to your inquiries. Based on how long a consumer has been away from your store, create a survey and email it to them.
- Targeted email campaigns are a wonderful strategy to re-engage clients in addition to providing a generic email newsletter based on their prior actions and behaviours.
- Digital re-targeting is the practice of setting cookies on visitors to your website or social media profiles, or tagging them, and classifying them into groups depending on the pages they visit and how they interact with your website.
Existing clients that have already chosen to use your brand for commercial purposes are quite valuable. Don't let them disappear into oblivion.
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