Answer:
$462
Explanation:
The computation of the net present value is shown below:
= Present value of all year cash inflows by considering the salvage value - initial investment
where,
Present value of all year cash inflows by considering the salvage value is
= Annual cash flows × PVIFA factor for 4 years at 15% + Salvage value × discount rate at 4 year on 15%
= $54,000 × 2.855 + $11,000 × 0.572
= $154,170 + $6,292
= $160,462
And, the initial investment is $160,000
So, the net present value is
= $160,462 - $160,000
= $462
We simply applied the above formula to determine the net present value
Refer to the PVIFA table and discount factor table
This is the answer but the same is provided in the given option
Answer:
d. $83,651.
Explanation:
In this question, we use the proportionate method which is shown below:
Salary in 2014 in dollars equals to
= Salary in 2004 × (Consumer price index in 2014 ÷ Consumer price index in 2004)
= $62,000 × (170 ÷ 126)
= $83,651
Simply we use divide the consumer price index in 2014 by consumer price index in 2004 and then multiply it with the earned salary in 2004
Answer: Internal recruiting
Explanation:
Internal recruiting is when an organization fills its vacancies from its existing workforce.
In this case, rather than looking for applicants to the position outside the company, the company fills the available position with some of its staff. On the other hand, external recruitment is when the position is filled by outsiders.
Answer:
Suppose that Mike has been holding asset B. (That is, Mike is holding a portfolio that entirely consists of asset B). Today, a stock broker came to Mike and recommended that he add a little bit of asset A into his portfolio (for example, 80% of asset B and 20% of asset A). Mike rejected this suggestion because he thinks that it is not a good idea to add a riskier asset into his portfolio -- based on the answers for Q3 and Q4, he knows that asset A is riskier (than asset B) in the sense that it has a higher standard deviation. Do you think that rejecting the stock broker’s suggestion was a correct decision- No
Explanation:
The returns that the portfolio can generate needs to be analyzed by Mike, and this can be achieved by adding the riskier asset.
If adding a little bit of the riskier project would lead to an increase in the returns by a greater proportion, then it may be beneficial to do the same. Therefore. Mike should consider the option before rejecting it completely.
