Answer:
13
Explanation:
Modified duration of stock = (1 + Growth rate) / (Effective rate - Growth rate)
Modified duration of stock = (1 + 4%) / (12% - 4%)
Modified duration of stock = (1 + 0.04) / 0.08
Modified duration of stock = 1.04 / 0.08
Modified duration of stock = 13
So, the modified duration of this share of the stock is 13.
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Answer:
A
Decision: Project A should be selected.
B
NPV =$40,909.09
Explanation
A
<em>Since the two projects would achieve the same objectives, the project with the lowest initial cost should be selected.</em>
Kindly note that the $2 million already spend on project A is not a relevant cash flow because it is sunk cost. Hence, the initial cos outlay of project A will be $2 million which will be spent should the project be undertaken.
Project B on the other hand would cost $1.5 million in initial cost which is $500,000 cheaper than project A.
Decision: Project A should be selected.
B
<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite. </em>
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
Initial cost = 50,000
The NPV of the savings
NPV = 100,000× 1.1^(-1) - 50,000= 40,909.09
NPV =$40,909.09
<span>If neither the allocator nor the recipient cared about fairness, optimal play in the
ultimatum game is straightforward: The allocator should propose a division of the
money in which the allocator receives $19.99 and the recipient receives $0.01. The allocator has maximized his or her gain. The recipient should accept the division,
because the alternative is to reject the division and receive nothing at all.</span>
Answer:
"Why, even though it is a law, equal pay is still disrespected?"
Explanation:
We know that there are laws that guarantee and demand that equal pay is established in all economic sectors of our country, however, we know that even before the law, women have received lower salaries than men who perform the same function within a labor institution. Does this pose a question that asks why the law is disregarded in relation to equal pay, even though it has been discussed several times in society and even if there are punishments for lawbreakers?