Question
you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar) for the project as follows:
Year cashflow
0 -100
1-10 15
0n the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.30. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 15% what is the net present value of the project
Answer:
NPV= -$32.58
Explanation:
The net present value of the investment is the cash inflow from the investment discounted at required rate of return. The required rate of return can be determined using the the formula below:
Ke= Rf +β(Rm-Rf)
Ke =? , Rf- 5%,, Rm-15%, β- 1.30
Ke=5% + 1.30× (15-5)= 18%
The NPV = Present value of cash inflow - initial cost
= A×(1-(1+r)^(-10)/r - initial cost
A- 15, r-18%
NPV = 15× (1-1.18^(-10)/0.18 - 100= -32.58
NPV = -$32.58
Answer:
d. candor
Explanation:
Candor is the the quality of being honest and open when interacting with others. Candor is also referred to as bluntness or frankness. By informing customers that she will revert to their queries following consultation with the store manager, Susan exhibits candor.
Answer:
b)
Explanation:
b- as soon and you have the money ~ so that let's say for example you want a phone and the phone is 300 dollars and you get 15 dollars/ an hour you would save up to get it
Answer:
any time during the investigation process to avoid creating undue stress and suspicion among other employees.
Explanation:
A fraud occurs when an individual takes undue advantage of another individual or organisation to obtain something of value.
When a fraud occurs investigators interview people that can provide insight into what really happened so that they can trace the fraud.
Fraud interviews are not conducted at a particular time such as at the beginning, middle, or end of the investigation process. This will cause stress among the employees.
Rather it is best to spread out interviews to anytime during the interview process. This reduces stress of handling all questions at once, and also is done to avoid suspicion among other employees.
<span>One of the difficulties of the comparable-worth policy is that, since it pays differing rates based upon the worth of the job to the overall importance of the business, it can put a company at a disadvantage when compared to businesses that only pay the base market rate for the same position. It can lead to, as shown in the example, increased expenses for the business.</span>
