A) Divisibility can easily be divided into smaller value.
Answer:
What rate of return (IRR) would you earn if you bought this asset?
8,48%
Explanation:
To find the IRR it's necessary to know which is the discount rate that applied to the cash flow of the assets gives a value that compensate the investment of $200,500.
Year 1 $100.000 / (1+0,0848)^1 = $92.182
Year 2 $100.000 / (1+0,0848)^2 = $35.690
Year 3 $100.000 / (1+0,0848)^3 = $41.398
Year 4 $100.000 / (1+0,0848)^4 = $31.230
Total Present Value of Cash Flow=
$92.182 + $35.690 + $41.398 + $31.230 = $200,500
There is no way to find the IRR without Excel, the only way is to try with different rates in the current cash flow formula.
Answer:
21.26%
Explanation:
Calculation for the Rate of return that the
investor receive on the XYZ Fund last year
Using this formula
Rate of return =Current value - original value +Income distributions+ Capital gain distributions) / original value) x 100
Where,
Current value =$19.47
Original value =$17.50
Income distributions=$0.75
Capital gain distributions=$1.00
Let plug in the formula
Rate of return($19.47 - $17.50 + $0.75 + $1.00)/$17.50
Rate of return =($1.97+0.75+$1.00)/$17.50
Rate of return=$3.72/$17.50
Rate of return =0.2126*100
Rate of return =21.26%
Therefore the rate of return that did investor receive on the XYZ Fund last year will be 21.26%
Answer:
The correct answer is letter "A": are rarely worth their face value.
Explanation:
Accounts receivables are notes issued to customers after selling them a product or rendering services on credit. The repayment term may vary from 30, 60 or 90 days. If an account receivable is not paid after that period it could be considered as an uncollectible account which implies the company will incur losses.
<em>Accounts receivable are hardly ever accepted at face value (real value of the moment of the purchase) because companies add the interest rate that is to be charged for the sale on the account.</em>
