Crossrail 1 project is about to start in London.
This project will require an initial investment of 9.4 billion. The project will start earning cash flows from year and it will continue to year 60 which is useful life of the project.
The NPV for the project will be 7.36 which is positive. The correct answer is c.
The payback period for project is 13.04 years which is given in the option a so correct answer is a.
The internal rate of return for the project is b. 7.35 .
Based on our analytics and calculation since NPV is positive so cross rail project is beneficial. The board should consider launching this project.
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Answer: 42,625 units
Explanation:
Projected sales for the month = 55,000 units
Beginning inventory =16,500units
Desired ending inventory = 25% of 16,500
= 0.25 × 16,500
= 4,125 units
Expected produce = projected sales + desired ending inventory - Beginning inventory
Therefore Expected production = 55,000 + 4,125 - 16,500
= 42,625 units
Walmart noticed that the packaging in some of their products only led to waste. Based from this observation, Walmart established a new policy requiring its toy suppliers to reduce the packaging of their products by one square-inch. Just from this reduction alone, Walmart's waste from packaging alone decreased by 3,500 tons.
Answer:
$1.70
Explanation:
Given that,
Current stock price= $40
Strike price= $39
After a period of one month, two states will be achievable.
- First state
Stock price=$42
Option value= 42-39
=$3
- Second state
Stock price= $38
Option value= 0
Upmove size of first state is
U= 42/40 =1.05
Downmove size of the second state is
D=38/40=0.95
The values given for the upside probability is given as:
Rf= 0.08
t= 1/12
πu = 0.567
The downside probability is equal to:
= 1 - 0.567
= 0.433
Therefore, the present value of option is:
(0.567 × 3) + (0.43 × 0) / e^0.08 × 1/12
= 1.70
Thus, the value of a one-month European call option is $1.70
Your answer is market ((: I hope this answer helps you !
