Answer:
A. True
Explanation:
Since Chase wants a long term fund that doesn't require a interest, it can be advisable that Chase uses the company's retained earnings.
Retained earnings (RE) is the amount of net income left over for the business after it has paid out dividends to its shareholders. A business generates earnings that can be positive (profits) or negative (losses).
Any papers, books, photographs, magnetic tapes, machine readable materials, microfilm, or other materials which document official actions, decisions, policies or procedures.
Answer:
23%
Explanation:
Base on the scenario been described in the question, we can use following method to solve the given problem
The computation is shown below:
computing the standard deviation first we have to find out the variance which is shown below:
Variance = 70% × (0.20 - 0.05)^2 + 30% × (-0.30 - 0.05)^2
= 0.0525
Now
Standard Deviation is
= (0.0525)^(1 ÷ 2)
= 23%
Answer:
-8.42%
Explanation:
The internal rate of return on this project can be computed using IRR function in excel spreadsheet as follows:
=IRR(values)
values represent the cash flows arranged from the earliest(year zero cash outflow of -$219000) to the latest( year 4 cash flow which is $49,000) as shown in the attached
IRR=-8.42%
At IRR , the NPV=0
NPV=-$219000+$41650/(1-8.42%)^1+$41650/(1-8.42%)^2+$41650/(1-8.42%)^3+$49000/(1-8.42%)^4=$0
