Answer:
2.4 years
Explanation:
Years Cash Cumulative Cashflow
1 8000 8000
<u>2 6000 14000</u>
3 5000 19000
4 4000 25000
5 <u>5000</u> 30000
<u>30000</u>
Payback period = 2 years + (16,000 - 14,000) / 5,000
Payback period = 2 years + 0.4 years
Payback period = 2.4 years
<span>i believe the answer is
D. Both A and C </span>
Answer:
- Project not acceptable as NPV is negative at -$9,553.10
- Time-adjusted rate of return = 12.41%
Explanation:
The Net Present value works by deducting the cost from the present value of benefits. If this amount is positive then the project is a good one.
= Present value of benefits - Present value of cost
Benefits are $9,000 a year for 10 years. This is constant so is annuity.
Cost is the $50,000 purchase price.
= (9,000 * Present value interest factor of annuity, 10 years, 18%) - 50,000
= (9,000 * 4.4941) - 50,000
= -$9,553.10
Project is not acceptable because NPV is negative.
Time-adjusted rate of return is the Internal Rate of Return which is the return that brings NPV to zero.
Use Excel or a Financial calculator for it(Worksheet attached):
= 12.41%
Answer:
Twisting
Explanation:
Twisting involves using names or titles that have tendency to misrepresent the true nature of a policy. It is an illegal practice done by some insurance manager or agent, as it involves twisting the truth about insurance policies.
For instance, an insurance agent who replaces an existing life policy for an insured individual with a new one by using misleading tactics, such as changing the name or title of the life policy is engaging in insurance twisting. The insurance agent usually induce or persuade the insured (existing policy holder) to take another policy by misrepresentation of the policy.
These agents usually engage in insurance twisting so as to get commissions from the insurance transaction at the detriment of their clients.
Assuming that the company decides to hire 25 whites and 10 blacks, what can be inferred using the four-fifths rule? 0.5 < 0.8, this indicates that there is evidence of discrimination. The four-firths rule states that 80% of the group will belong to one section for the rate of the group. The other 20% will belong to another group.