Answer:
1. In the scenario where Interest rate is 6% and inflation rate is 4%; annual real return on the investment will be $0.5 or 0.5%;
2. In the scenario where Interest rate is 12% and inflation rate is 10%; annual real return on the investment will be -1 or -1%
Explanation:
1. In the scenario where Interest rate is 6% and inflation rate is 4%:
- Your before-tax interest income will be: 100 x 6% = $6
- Your after-tax interest income will be: 6 x (1-25%) = $4.5
- Your inflation cost will be: 100 x 4% = $4
- Your net annual real return will be: $4.5 - $4 = $0.5 or 0.5/100 = 0.5%
2. In the scenario where Interest rate is 12% and inflation rate is 10%; annual real return on the investment:
- Your before-tax interest income will be: 100 x 12% = $12
- Your after-tax interest income will be: 12 x (1-25%) = $9
- Your inflation cost will be: 100 x 10% = $10
- Your net annual real return will be: $9 - $10 = -$1 or -1/100 = -1%
Answer:
I inves in stocks myself. you need to buy the stocks when they are cheap, but only if they are going up in price. if the reach a plateau, or if they start loosing value, sell them and you could make a huge profit.
Answer:
The Company should undertake project A.
Explanation:
The finance of projects is usually done through pooling of funds, that is using <em>various sources</em> of finance. The WACC represents the return required by providers of this finance and also shows the risk of the company.
A company will always<em> accept projects</em> that provide a return higher that their weighted average cost of capital (risk) and r<em>eject any project</em> offering a return below the WACC.
Conclusion :
The Company should undertake project A as this gives a return higher than the WACC of 8.5%.
di+, di- are the deviation variables for i-th objectives.
Product_1, product_2, product_3 are respectively the products 1,2 and 3 to be produced in a day. Those are the Standard variables
goal: (1/400)*d4+ (2/240)*d3+ (3/500)*d2-+ Min (4/240)*d1-
variables are equal or bigger than zero
400 = 5*product_1 + 6*product_2 + 3*product_3 - d4- + d4+
240 = 5*product_1 + 2*product_2 + 4*product_3 - d3- + d3+
240 = 5*product_1 + 2*product_2 + 4*product_3 + d1- - d1+
500 = 3*product_1 + 5*product_2 + 2*product_3 + d2- - d2+
The best way to assess to this situation is to ask the team members to organize the task that is needed to be done, in which it shows the process of multi tasking, so that more customers could be handled. Another thing, it is best to do the most prioritize task of which customers accumulate in, in order to lessen the customers that are waiting for the service. Lastly, it is best to focus on the task that are assigned and to do it quickly and efficiently, to get the job done.