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jeka57 [31]
3 years ago
8

A capital investment firm placed $1.5 million 2 years ago to acquire part-ownership in an innovative chip making company. How lo

ng will it take from the date of their initial investment for their share of the chip company to be worth $3 million, if the company is realizing a 20% per year return?A capital investment firm placed $1.5 million 2 years ago to acquire part-ownership in an innovative chip making company. How long will it take from the date of their initial investment for their share of the chip company to be worth $3 million, if the company is realizing a 20% per year return?
Business
1 answer:
Andrew [12]3 years ago
5 0

Answer:

t = 3.801784017 years rounded off to 3.80 years

Explanation:

We need to calculate the time it takes for the initial investment of $1.5 million to grow and have a future value of $3 million. The formula to calculate the future value of a sum of money is,

FV = I * (1+r)^t

Where,

  • FV is the future value
  • I is the initial investment amount
  • r is the rate of return
  • t is the time in years

3 = 1.5 * (1+0.2)^t

3 / 1.5 = 1.2^t

2 = 1.2^t

log (2) / log (1.2) = t

t = 3.801784017 years rounded off to 3.80 years

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Consider the market for cars. Which determinant of supply is affected by each of the following events? a. A steel tariff increas
Kitty [74]

Answer & Explanation:

1.  A steel tariff increases the price of steel :  Increase in of 'Price of inputs' -  decreases (leftward shifts) supply curve

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3. Factories close because of am economic downturn : 'Number of sellers' reduce - decreases (leftward shifts) supply curve.

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4 0
3 years ago
Alzania produces and consumes​ 500,000 tons of cotton during a year. Reports indicate that​ Alzania's neighbor, which also emplo
Rama09 [41]

Answer:

The answer is: E) workers in Alzania have higher productivity due to better education and training.

Explanation:

Alzania and its neighbor both produce cotton and they both have the same amount of workers in the production of cotton. If Alzania is able to produce more cotton (or any type of product) using the same amount of resources (in this case labor) than its neighbor, we can conclude that Alzania does have an absolute advantage in that industry.

This absolute advantage exists because Alzania's workers are more productive than their neighbor's workers.

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4 0
3 years ago
Kaplan, Inc. produces flash drives for computers, which it sells for $27 each. The variable cost to make each flash drive is $13
notka56 [123]

Answer:

Break even sales will be $2700

So option (b) will be correct option

Explanation:

We have given fixed cost = $1400

Sells per unit = $27 each

And variable cost per unit = $13 each

So contribution margin ratio =\frac{sales\ per\ unit-variable\ cost\ perunit}{sales\ per\ unit}=\frac{27-13}{27}=0.5185

We know that break even sales is given by

Break even sales =\frac{fixed\ cost}{contribution\ margin\ ratio}=\frac{1400}{0.5185}=$2700

So option (b) will be correct answer

6 0
3 years ago
Quickbrush Paint Company is developing a linear program to determine the optimal quantities of ingredient A and ingredient B to
Sonbull [250]

Answer:

A. 0.9x + 0.3y ≤ 10,000

Explanation:

Given

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\begin{array}{ccc}{} & {A} & {B}  & {x} & {90\%} & {10\%}  & {y} & {30\%} & {70\%} & {} & {10000} & {5000}\ \end{array}

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Since the company currently has 10000 of A.

The above constraint implies that, the mixture cannot exceed 10000.

So, we have:

A \to 0.9x + 0.3y \le 10000

<em>Hence, (A) is correct</em>

4 0
3 years ago
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