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Paraphin [41]
3 years ago
9

Investor pete specializes in obtaining properties from investors in financial difficulty, what investment strategy does pete pra

ctice?
1. Arbitrage
2. Special situation
3. Opportunistic
4. Development
Business
1 answer:
Arlecino [84]3 years ago
6 0

Answer: (3) Opportunistic

Explanation:

 The opportunistic is one of the type of investment strategy which practices the of obtaining various types of advantages and the properties from the investors at the time of financial difficulty.

 According to the given question, the investor Pete is practicing the opportunistic investment strategy for the moment of time and it is the self motivation process. It is the process of sacrificing the ethical principles.

 Therefore, Option (3) is correct.

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In 2013, Roma was a schoolteacher and earned $40.000. But she enjoys creating cartoons, so at the beginning of 2014, Roma quit t
Neko [114]

Answer:

a. $56,400

b. 101,750

c. Economic loss of $108,150

Explanation:

a.

Explicit Cost

The direct payments made to other for different purposes s explicit cost. Such as wages, rent etc.

For Roma Explicit costs are

Computer                                $55,000

Printer lease payment            $150

Paper, utilities, & postage      <u>$1,250   </u>

Total Explicit Cost                   $56,400

b.

Implicit Cost

Any opportunity cost is the implicit cost. The loss of benefit which someone faces for choosing an alternative.

For Roma Explicit costs are

School Teacher Salary       $40.000.

Building rent                       $55,000  

Bank Interest (5% 55,000) $2,750

Computer offer                   <u>$4,000</u>

Total Implicit cost               $101750

c.

Economic Profit

Economic Profit is the net of Revenue / Income less Implicit and Explicit costs associated with the revenue / Income.

Economic Profit / loss = Total Revenues - (Explicit Costs + Implicit Costs)

Economic Profit / loss = $50,000 - ($56,400 + 101,750)

Economic Loss = $108,150

3 0
3 years ago
​Sandstone, Inc. is considering a fourminusyear project that has an initial afterminustax outlay or afterminustax cost of​ $80,0
mote1985 [20]

Answer:

NPV = $28020.99

so he accept the this project as NPV value is positive

Explanation:

given data

CF 0 = $80000

CF 1 = $40000

CF 2 = $40000

CF 3 = $30000

CF 4 = $30000

discount rate r = 12%

solution

we get here Net present value (NPV) of the project that is total sum of the current value of all flow that is express as

NPV = - CF 0 + \frac{CF1}{(1 + r)} + \frac{CF 2}{(1 + r)^2} + \frac{CF3}{( 1+ r)^3} + \frac{CF4}{(1+r)^4}     ...........................1

put here value and we get

NPV  = - 80000 + \frac{40000}{(1+ 0.12)} + \frac{40000}{(1+ 0.12)^2} + \frac{30000}{( 1 + 0.12)^3} + \frac{30000}{(1+ 0.12)^4}  

solve it we get

NPV =  - 80000 + 35714.29 + 31887.76 + 21353.41 + 19065.54

NPV = $28020.99

so he accept the this project as NPV value is positive

4 0
3 years ago
According to economists, gift registries, returning gifts for cash refunds, and "recycling gifts" multiple choice increase the e
valentina_108 [34]

A) increase the efficiency of gift-giving because they allow the recipient to consume goods that provide greater utility and transfer away those goods that are less satisfying.

Utility is the satisfaction that a consumer gets from a good or service, and picking the items that they want themselves provides the best efficiency of choosing goods.

5 0
3 years ago
An investment has the following characteristics:ATIRRP: After-tax IRR on total investment in the property: 9.0%BTIRRE: Before-ta
Strike441 [17]

Answer:

Option (A) is correct.

Explanation:

Given that,

After-tax IRR on total investment in the property = 9.0%

Before-tax IRR on equity invested = 17%

Before-tax IRR on total investment in the property = 12%

t: Marginal tax rate = 0.40

Break Even Interest rate (neither favorable nor unfavorable):

= After tax IRR on total investment ÷ (1 - Tax rate )

= 9% ÷ (1 - 0.40)    

= 9% ÷ 0.60

= 15%

7 0
3 years ago
In the last few weeks, Steve has stopped chatting with his coworkers during work. He takes short lunch breaks, and he is complet
diamong [38]
This is a concentrated productive worker
3 0
3 years ago
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