Answer:
First project
Explanation:
The 2 options/ project been considered:
1. Buying 10% of shares in a publicly traded american company that owns five power generation units in Pakistan
2. To be partner with equal share with one private company in building a new power generation unit in Pakistan
The first option/project would have a higher required return because:
<em>- This company is already settled in the country having five power generation units in Pakistan. All these units are running and making profit.</em>
<em>- Investment Option 2 is high riskier as we do not know the details of the new company and there are so many unforeseen circumstances surrounding establishing such project in the company. It will also take time to establish in order to start make it profitable.</em>
Answer:
$163,100
Explanation:
First find the present value of cashflows at year 1 and 2
<u>PV of $82,400;</u>
PV = FV/(1+r)^n
PV = 82,400/(1.1275)^1
PV = $73082.0399
<u>PV of $148,600;</u>
PV = FV/(1+r)^n
PV = 148,600 /(1.1275)^2
PV = $116,892.2473
From the cumulative present value of 303,764.34, find the balance after deducting the above PVs;
PV of cashflow yr3 = $303,764.34 -$73082.0399 -$116,892.2473
PV of cashflow yr3 = $113,790.053
Next, calculate year 3's cashflow;
Year 3 cashflow = 113790.053(1.1275)^3
Year 3 cashflow = $163,099.996
Expected cashflow in third year is approximately $163,100
E. You can send a presentation via email instead of having to fly to a customer.
C. Taking your competition seriously.
Answer:
The answer is: Red Carpet should try to focus on niche market segments.
Explanation:
A niche market is part of a greater market, but its focus is set on very specific products. The niche market has very specific market needs that need to be targeted by very specific products.
Usually niche markets are targeted by high priced products since normal broad range products or services will not satisfy their specific needs. For example, vegan restaurants are more expensive than McDonald's or Pizza Hut.
Since niche markets are small, usually big multinational corporations don't pay attention to them.