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QveST [7]
4 years ago
6

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$218,917 –$16,419 1 25,700 5,985 2 5

3,000 8,370 3 58,000 13,931 4 420,000 8,655 Whichever project you choose, if any, you require a 6 percent return on your investment. What is the IRR (in %) for Project A?
Business
1 answer:
Kryger [21]4 years ago
5 0

Answer:

The IRR (in %) for Project A is 31%.

Explanation:

Let IRR be x%

At IRR, present value of inflows = present value of outflows.  

218917 = 25700/1.0x + 53000/1.0x^2 + 58000/1.0x^3 + 420,000/1.0x^4

solving for x, we find:

x = 31%

Therefore, The IRR (in %) for Project A is 31%.

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While in the restroom, you overhear your boss telling a colleague that Bob is going to be laid off at the end of the quarter in
Vsevolod [243]

Answer:

While in the restroom, you overhear your boss telling a colleague that Bob is going to be laid off at the end of the quarter in about two weeks’ time. Bob is a good friend of yours.Do you tell him? Why or why not?a.Response/Approach: UTILITARIANISMi.As a good friend you are, you could HIGHLY encourage Bob look for a newjob and infer that you heard that there are budget cuts going to be happening and “anyone” could be “laid off.”7.One of the newest salespeople in your division is a real goof-off, never showing up for work on time, distracting other people with his antics and so on. You complain about him to your boss, who tells you the kid is the son of the company president. Your boss instructs you not only to leave the new guy alone but also to make his sales numbers look good by throwing him some no-brainer accounts. What do you do?a.Response/Approach: INDIVIDUAL RESPONSIBILITESi. As an employee of this company, you have the responsibility to report thisto a someone of higher status than just your boss. If your boss isn’t takingthe situation seriously, you need to stand up and tell higher authorities.ii.There is surely more people that are aware of this and if everyone aware backs you up, you can’t be fired or punished because then things would “become personal” and that can become a bigger issue that the presidentof the company is probably willing to deal with.

Explanation:

3 0
3 years ago
If your firm buys $1,000 worth of supplies on credit with terms 3/15 n60 and pays the bill on the 60thday after the purchase:
Agata [3.3K]

Answer:

Nominal Cost of Trade Credit = 25.09%

Exact Cost of Trade Credit  = 28.03%

Explanation:

given data

buys worth =  $1,000

terms = 3/15 n60

pays the bill = 60th day

to find out

Nominal Cost of Trade Credit and Exact Cost of Trade Credit

solution

we know here Discount % and time 60 day and discount period that is

Discount % = 3%

time for Payment = 60 days

and Discount Period = 15 days

so Nominal Cost of Trade Credit will be as

Nominal Cost of Trade Credit = Discount % ÷ (100 - Discount % ) × [ 365 ÷ (time for Payment - Discount Period) ]    ..................1

put here value we get

Nominal Cost of Trade Credit = \frac{0.03}{1-0.03} × \frac{365}{60-15}

Nominal Cost of Trade Credit = 25.09%

and

Exact Cost of Trade Credit will be here as

Exact Cost of Trade Credit = (1+Discount % ÷ (100%-Discount %))^(365/(time for Payment - Discount Period) - 1    ..................2

put here value we get

Exact Cost of Trade Credit  = (\frac{1+0.03}{1-0.03})^{\frac{365}{60-15}} - 1

Exact Cost of Trade Credit  = 28.03%

5 0
4 years ago
In addition to the Small Business Job Protection Act of 1996 encouraging small businesses to allow employees to enroll into a 40
Elanso [62]

Answer:

100%

Explanation:

401(k) plans are financial provisions that guarantee financial security after retirement. Prior to the Small Business Job Protection Act of 1996, these provisions were bogus and difficult to understand/comply with by businesses. The Act simplifies the requirements and allows employees to enroll in the 401(k) plans where the annual contributions testing is bypassed. Employees vest 100% of their salary. This means that they cannot forfeit all the money contributed. After retirement, they can benefit from their deferrals and profits.

6 0
3 years ago
1. General Electric is famous for firing the lowest-performing 10 percent of managers each year. With its strict no-layoffs poli
AleksAgata [21]

Answer:

Firstly i will discuss General electric philosophy. So, what happens is sometimes when you don't put pressure on managers then they become lethargic and slow. For this matter they needs reminder to stay on tip of their game. But at the same time its demotivating too.

Secondly, in Valero energy they believe in psychological safety, to make their employees feel secure and safe. It has great impact on employee performance.

Actually, company's performance is not measured by profit and loss alone. It also measures by other factors like employee safety, employee motivation, impact of policies on employees and bringing positive addition to the life of employee.

General electric is high performing company in terms of profit and revenue. They follow negative reinforcement philosophy.

Both concepts eargs the employees to perform better. But one approach is better i.e to make them feel secure and make them believe that company cares for their career, future and well being. That actually motivates the employee. In return employees works wonders for that company.

In latest HR practices, many professionals are shifting from General electric philosophy to Valero energy philosophy. Because it increases productivity of employee by positive reinforcement. Which actually is better.

3 0
3 years ago
Which of the following is an example of capital outflow for Germany?a. German company Haribo sells a production facility in Irel
Drupady [299]

Answer:

c. GM sells stock in Audi to German resident

Explanation:

It means a capital outflow for Germany because a foreing company to Germany sells its shareholding position in a German Company,

the sale means that a German Resident gives money to a foreign company in exchange for the Audi shares.

7 0
3 years ago
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