The purpose of advertising is ____

9 . Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected

vodomira [7]

Answer:

IRR 6% for Jabob

His friend will need 12 years saving cash to obtain their collegue funds.

Explanation:

We will solve for the rate being the annuity of 3 payment of 800

and the present value 2,138.41

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 800

time 3

PV 2,138.41

rate ?

$800 \times \frac{1-(1+x)^{-3} }{x} = 2,138.41\\$

To solve we can use excel, a financial calculator or trial and error

For excel we will do the following:

write the list of cash through the loan life:

-2,138.41

+800

then we write in the empy cell

=IRR(

select the values and press enter

This will give the IRR which is 6%

For the second assignment:

we need to solve for time:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 3,800

time n

rate 0.06

PV $31,897

$3800 \times \frac{1-(1+0.06)^{-n} }{0.06} = 31,897\\$

We work out the formula:

$(1+0.06)^{-n} = \frac{31,897\times 0.06}{3,800}$

Now we solve the right side and apply logarithmic properties

$-n = \frac{log0.503636842
}{log1.06}$

-n = -11.77128325

n = 11.77

It will take 12 years to obtain their target amount

3 0

3 years ago

Joint ventures: a. are an alternative to new ventures. b. are attractive when entry barriers are high. c. are attractive when sp

Dafna11 [192]

Answer:

Are an alternative to new ventures.

Explanation:

Joint ventures is a business arrangement between two of more organisations to form a partnership. The oganisations involved share ownership, profits, investments.

A joint venture provides access to a large number of resources and it also provides the opportunity to gain new insight and expertise.

Different organizations enter into joint venture for either the purpose of a production process or research avtivity.

3 0

3 years ago

A U.S.-based importer, Zarb Inc., makes a purchase of crystal glassware from a firm in Switzerland for 39,960 Swiss francs, or $

IRINA_888 [86]

Answer:

e. $638

Explanation:

payment to be made as per forward contract (IN $)

= 39960/ 1.682

= $23757.43

now the actual rate after 90 days is 1.638

payment at 1.638 rate = 39960/ 1.638

= $24395.6

loss by hedging = $24395.6 - $23757.43

= $638.17

Therefore, The U.S. firm have saved or lost $638 in U.S. dollars by hedging its exchange rate exposure.

4 0

3 years ago

Suppose on august 27, there were 1,455 stocks that advanced on the nyse and 1,553 that declined. the volume in advancing issues

butalik [34]

Answer:

trim ratio = 1.15 and bearish

Explanation:

given data

stock = 1,455

decline = 1,553

volume in advancing issues = 852581

volume in declining issues = 1,058312

solution

we get here the trim ration is express here as

trim ratio = (stock ÷ decline) ÷ ( advancing issues ÷ declining issues ) ...............................1

put here value and we get trim ratio

trim ratio = $\frac{\frac{1455}{1553} }{\frac{852581}{1058312} }$

solve it we get '

trim ratio = 1.15

and here we see trim is greater than 1 so

it is bearish

4 0

3 years ago

Equipment with a book value of $80,000 and an original cost of $164,000 was sold at a loss of $34,000. Paid $103,000 cash for a

jonny [76]

Answer:

Cash flows from investing activities is $653,200.

Explanation:

XYZ Company

Statement of cash flows (extract)

Proceed from sale of equipment ($80,000 - $34,000) $46,000

Purchase of vehicle $103,000

Proceed from sale of land $410,000

Proceed from sale of long-term investments in stock $94,200

Cash flows from investing activities $653,200

8 0

3 years ago

The purpose of advertising is _____.