Answer:
Analyze the risk
Explanation:
Risk management project risk has the following steps to minimize the risks -
a) Identifying the risks;
b) Analyzing the risks;
c) Evaluating the risks;
d) Treating the risks;
e) Monitoring and reviewing the risks.
Therefore, after identifying the risks, project managers analyze the risk to reduce the risks of the project. Analyzing the risks include recognizing the nature of the risk and difficulties faced by the risk to perform the project.
The appropriate response is the turnkey project. One of the unique methods of completing universal business is a turnkey project. It is an agreement under which firm consents to complete configuration, build and prepare a business office and turn the venture over to the buyer when it is prepared for operation for a compensation.
Answer:
C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.
Explanation:
given data
State 1 State 2 State 3
Probability 25% 50% 25%
Spot rate $ 2.50 /£ $ 2.00 /£ $ 1.60 /£
P* £ 1,800 £ 2,250 £ 2,812.50
P $4,500 $4,500 $4,500
solution
company holds portfolio in pound. so to get hedge, they will sell that of the same amount.
we get here average value of the portfolio that is
The average value of the portfolio = £ (0.25*1800 + 0.5*2250 + 0.25*2812.5)
The average value of the portfolio = 2278.13
so correct option is C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.
Answer:
The solution to the given problem is provided below.
Explanation:
Cash (1 million shares x 29) 29 mil
Paid- in capital – share repurchase (difference ) 7 mil
Treasury stock (1 million shares x 22 ) 22 mil
<u>Answer: </u>$500,000
<u>Explanation:</u>
The difference between the contract amount and cost incurred is the profit in this case.
Profit from the project = $20mn-$16mn
=$4mn
In the above mentioned project only 12.5% complete at the end of 20X5 ($2mn/$16mn). Total gross profit through the end of 20X5 is therefore
=$4mn x 12.5%
=$500,000
The $500,000 amount is the proportion of completion applied to the total contract profit of $4mn. This is the beginning year of contract so there is no previous profits or expenses that needs to be adjusted. The entire $500,000 gross profit is recognized in 20X5.
