<span>If there is a higher risk on future earnings, then the return needs to be high to meet these risks. Safer stocks tend to have lower rates of return, but are more likely to meet their earnings goals. Stocks with these higher risks inherent will also tend to bring returns that far outstrip these safe investments.</span>
Answer:
Present value Discount rate 7% Discount rate 0%
Cash stream A $1,217.11 $1,500
Cash stream B $1,239.27 $1,500
Explanation:
Since there is two cash stream i.e A and B and we have to find out the present value of each cash stream through a discount rate of 7% and 0%
The workings are shown in the attached spreadsheet
Plus the discount factor is computed by
= 1 ÷ (1 + rate) ^ years
For Year 1 = 1 ÷ 1.07^1 = 0.9345794393
For Year 2 = 1 ÷ 1.07^2 = 0.8734387283
and so on
Answer:
a. fixed cost
Explanation:
Rent is always negotiated and stated in the tenancy or lease agreement. The lease or tenancy agreement is reviewed either annually or after every two years. The rent amounts remain the same until the time a tenancy agreement is reviewed.
Fixed costs are the business expenses that remain the same throughout the financial period. A business has to incur fixed costs as long as the business is operational. The level of business activity or output does not affect fixed costs. Rent is a good example of fixed costs. A business has the pay the same amount of rent regardless of its production level.
Answer:
Cost Benefit Analysis
Way of thinking that compares the cost of an action to its benefits.
Explanation:
I hope it helps.
Answer:
$21,000
Explanation:
The new bridge would take 30 man hours of labor at $50 per hour, in activity based costing, this means that ,
30*50 = 1500.
Now, it will require 14 piers to support it each time a pier is sunk into the harbor,hence the final calculation will be:
30*50*14 = 21000.
Hope this Helps.
Goodluck.
