Intro to Investing Math Quiz

3. Based on sales, what products do customers want? How accurately did the

PilotLPTM [1.2K]

Answer: Market survey

Explanation:

One of the ways to determine what customers want is my doing s survey. A survey would guide you through what they want. One of the ways to do this survey to get accurate answers is through questionnaire's, questionnaire's could be sent through mobile or advert or mails, asking what exactly what the customers want, from the feedback, the owner can predict accurately.

5 0

3 years ago

Suppose that Habib has a weekly fixed budget and spends it all on music downloads and snacks. At his current combination of cons

Klio2033 [76]

Answer:

No, because he can increase his total utility by purchasing more music downloads and fewer snacks.

Explanation:

4 0

3 years ago

A medical facility does MRIs. Occasionally, the test yield inconclusive results and have to be repeated. Using the following sam

kupik [55]

Answer:

a) 0.118.

Explanation:

The computation of the UCL is shown below:

Given that

N = 100

Sample Sample size Number of retests fraction defective

1 100 4 0.04

2 100 11 0.11

3 100 6 0.06

4 100 10 0.1

5 100 4 0.04

6 100 6 0.04

7 100 1 0.01

8 100 6 0.06

9 100 9 0.09

10 100 11 0.11

Total 1,000 68

Now p is

= 68 ÷ 1000

= 0.068

Now the standard deviation is

= √p(1 - p) ÷ √n

= √0.068 × (1 - 0.068) ÷ √100

= 0.025

Now the UCL is

= p + z × standard deviation

= 0.068 + 2 × 0.025

= 0.118

5 0

3 years ago

What is the opportunity coast in using pi over npv?

salantis [7]

Topics Reference Advisors Markets Simulator Academy Profitability IndexBy Investopedia SHARE Chapter One Chapter Two Chapter Three Chapter Four Chapter Five Chapter One Chapter Two Chapter Three Chapter Four Chapter Five4.1 Net Present Value And Internal Rate Of Return4.2 Capital Investment Decisions4.3 Project Analysis And Valuation4.4 Capital Market History4.5 Return, Risk And The Security Market Line4.1.1 Introduction To Net Present Value And Internal Rate Of Return4.1.2 Net Present Value4.1.3 Payback Rule4.1.4 Average Accounting Return4.1.5 Internal Rate Of Return4.1.6 Advantages And Disadvantages Of NPV and IRR4.1.7 Profitability Index4.1.8 Capital Budgeting
A profitability index attempts to identify the relationship between the costs and benefits of a proposed project. The profitability index is calculated by dividing the present value of the project's future cash flows by the initial investment. A PI greater than 1.0 indicates that profitability is positive, while a PI of less than 1.0 indicates that the project will lose money. As values on the profitability index increase, so does the financial attractiveness of the proposed project.

The PI ratio is calculated as follows:

PV of Future Cash Flows
Initial Investment

A ratio of 1.0 is logically the lowest acceptable measure for the index. Any value lower than 1.0 would indicate that the project's PV is less than the initial investment, and the project should be rejected or abandoned. The profitability index rule states that the ratio must be greater than 1.0 for the project to proceed.

For example, a project with an initial investment of $1 million and present value of future cash flows of $1.2 million would have a profitability index of 1.2. Based on the profitability index rule, the project would proceed. Essentially, the PI tells us how much value we receive per dollar invested. In this example, each dollar invested yields $1.20.

The profitability index rule is a variation of the net present value (NPV) rule. In general, if NPV is positive, the profitability index would be greater than 1; if NPV is negative, the profitability index would be below 1. Thus, calculations of PI and NPV would both lead to the same decision regarding whether to proceed with or abandon a project.

However, the profitability index differs from NPV in one important respect: being a ratio, it ignores the scale of investment and provides no indication of the size of the actual cash flows.

The PI can also be thought of as turning a project's NPV into a percentage rate.

(Find some profitable ideas in 8 Ways To Make Money With Real Estate and Outside The Box Ways To Get Money.)

4 0

3 years ago

Vaughn Company issues 11,300 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2020. The stock has a fair value o

Firlakuza [10]

I think you made mistakes in the dates which i have corrected in the explanations----Prepare the journal entries to record the restricted stock on "January 1, 2017" (the date of grant), and "December 31, 2018"

Answer: Please see answer in explanation column

Explanation:

To record unearned compensation

Date Account titles and explanation Debit Credit

Jan 1, 2020 Unearned compensation $565,000

To Common stock ( 11,300 shares × $10) $113,000

To Paid in capital in excess of par - common stock $452,000

To record the compensation expense

Date Account titles and explanation Debit Credit

Dec 31, 2020 Compensation expenses $113,000

To Unearned compensation $113,000

Calculation:

Compensation expenses =$565,000 ÷ 5 years= $113,000

To record the forfeiture

Date Account titles and explanation Debit Credit

July 25, 2021 Common stock $113,000

Paid in capital in excess of par - common stock $452,000

To Compensation expenses $113,000

To Unearned compensation $452,000

Calculation:

Common stock ( 11,300 shares × $10)= $113,000

To Compensation expenses $113,000 ($113,000 × 1 year) January 1, 2020-July 25, 2021,

Unearned compensation =fair value of $565,000 --Compensation expenses of $113,000 = $452,000

7 0

3 years ago