Which of type of employees possesses high commitment and low task performance but performs many of the voluntary "extra-role" ac
1 answer:
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Answer: Net present value = $446,556
Explanation:
First we'll compute the Weighted Average Cost of Capital :
Weighted Average Cost of Capital =
= 0.163× + 0.0729× (1 - 0.35 )×
= 0.1255
where;
= Cost of equity
= Proportion of equity
= Cost of debt
= Proportion of debt
Now, we'll compute the cost of capital using the following formula:
Cost of capital = Weighted Average Cost of Capital + adjustment factor
= 0.1255 + 0.0125
= 0.138 or 13.8%
∴ Net present value = Cash outflows - Total PV of cash flows
= $3,900,000 - $1,260,000 (Annuity value of 13.8% for 5 years)
= $3,900,000 - $3,453,444
= $446,556
Therefore, the correct answer is option(b).
Answer: In a majority vote, this proposal will most likely be accepted.
Explanation:
The cost of the proposed public goods is $1000, which will be shared equally among the 5 people. So, per person share on the provision of public good will be,
Since, Abby, Ben and Clara value the good more than the cost they will vote in favor of the provision. But Joe and Matt value it less than the cost so they will vote against the provision.
Value to Abby is $220 which is greater than $200.
Value to Ben is $210 which is greater than $200.
Value to Clara is $210 which is greater than $200.
Value to Joe is $180 which is less than $200.
]Value to Matt is $120 which is less than $200.
So since 3 people out of 5 vote in favor of the proposal, the public good will be provided.