Answer:
in order for the association to be able to purchase group insurance it must be active for at least two years.
Explanation:
Besides the two year period, the association must also have more than 100 active members (this one has 125), have by-laws (they have them), meet at least once a year (they plan to do so), and have a legal constitution (they have it). If everything goes as planned, this association should be able to purchase group insurance in one year.
A. Workaholic that is the answer
Answer:
c
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested. It is a capital budgeting method.
IRR can give conflicting answers when negative cash flow in mixed with positive cash flows during the life of the project. that is the negative cash flow does not occur at the beginning of the project
IRR considers the time value of money
Consider two sceneries
In the first scenario, 50,000 is invested in a project, the cash flow in year 1 and 2 is 0. the cash flow in year 3 is 150,000. IRR is 44.2%
n the second scenario, 50,000 is invested in a project, the cash flow in year 1 is 50,000. cash flow in year 2 100,000 and 3 is 0 . IRR is 100%
IRR gives higher value to cash flows occurring in earlier years
Answer:
$26.42
Explanation:
According to the given situation, the computation of the estimated current stock price is shown below:-
Estimated current stock price = Earning per share × PE ratio
= $2.08 × 12.7
= $26.42
Therefore for computing the estimated current stock price we simply applied the above formula and ignore all other value as they are not relevant.