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3 years ago

As an investor and based on your understanding of risk, which of the following statements is true?

1 answer:

3 0

Answer: B. You should invest in a stock if the expected rate of return from the stock is greater than the expected rate of return on an asset with a similar risk.

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Alin Co. purchases a building for $300,000 and pays an additional $30,000 for closing costs (brokerage, title, attorney fees). A

Yuri [45]

Answer:

The answer is: $350,000

Explanation:

When Alin Co. establishes the total cost of the building it just purchased, it must include all of the following:

building's purchase value $300,000
associated closing costs $30,000
building improvements and renovations $20,000

So the total cost of the building is $300,000 + $30,000 + $20,000 = $350,000

3 0

3 years ago

assume that your parents wanted to have saved for college by your 18th birthday and they started saving on your first birthday.

wariber [46]

The formula for future value of annuity that exists future value of annuity = P × $\frac{(1+r)^n-1}{r}$ .

Save each year to reach their goal exists $2152.48

Save each year to reach their new goal exists $2869.97

<h3>What is meant by future value of annuity?</h3>

The worth of a series of recurrent payments at a specific future date, assuming a specific rate of return, or discount rate, is the future value of an annuity. The future value of the annuity increases with the discount rate.

Given: amount saved = 120,000

Rate of Interest earned = 12.0 %

time = 18th birthday

Where, annual savings = P

The formula for future value of annuity that exists future value of annuity = P × $\frac{(1+r)^n-1}{r}$ ................(1)

where r exists rate and n exists a time period

put her value

$ 120,000 = P × $$\frac{(1+0.12)^{18}-1}{0.12}$

= $ 2152.48

Save each year to reach their goal exists $ 2152.48 and for $ 160,000 on 18 th Birthday

we consider here annual savings = P

From (1),

Future value of annuity = P × $\frac{(1+r)^n-1}{r}$

$ 160,000 = P × $\frac{(1+0.12)^{18}-1}{0.12}$

P = $2869.97

Therefore, Save each year to reach their goal exists $2152.48

save each year to reach their new goal is $2869.97

To learn more about future value of annuity refer to:

brainly.com/question/27011316

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7 0

1 year ago

what is the term that refers to the functions used to move products through the channel to the consumer?

Readme [11.4K]

The term that refers to the functions used to move products through the channel to the customer is distribution

5 0

3 years ago

What impression does it give if you are text messaging or listening to music while waiting to be called into an interview?

mylen [45]

It would give me the impression that you’re not interested in the interview. If someone walked into an interview while doing the above personally I would see them as “having better things to do”

Anyways, Hope this somehow helps!

3 0

3 years ago

The following data pertain to an investment proposal (Ignore income taxes.):

Viefleur [7K]

Answer:

The closest answer is option A,$7649

Explanation:

The net present value of the investment is the present value of annual cost savings minus the initial cost of investment.

present of cash flow=cash flow/(1+r)^n

r is the discount rate of 12%

n is the year the cash flow relates to ,for instance year zero for the initial investment

NPV=-$54,000+$16,000/(1+12%)^1+$16,000/(1+12%)^2+$16,000/(1+12%)^3+$16,000/(1+12%)^4+($16,000+$7,000)/(1+12%)^5=$ 7,648.41

note that the project gives $7,000 in salvage value in year 5

4 0

3 years ago