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a_sh-v [17]
3 years ago
9

Kirby just inherited $250,000. He would like to hire a financial advisor to provide financial advice and to manage the inheritan

ce. Kirby has interviewed two potential advisors. The first person indicated that he would not charge for his advice but would charge a 4.50% commission on any mutual funds purchased when managing the $250,000. The second person indicated that she would charge $2,500 to write a financial plan and 1% of any asset she manages. Which advisor should Kirby choose if he wants the $250,000 managed and is interested in minimizing his upfront expenses?
A. The first advisor because there is no planning fee.
B. The second advisor because the total first-year cost is $5,000.
C. The first advisor because the total first-year cost is $5,000.
D. Because the cost is approximately the same, either advisor could be selected.
Business
1 answer:
Blababa [14]3 years ago
5 0

Answer:

The answer is A.

Explanation:

According to the details given in the question on the two financial advisor's approach, the first advisor does not request a payment but a commission on the funds purchased with the inheritance money. The second advisor does request payment for the job and also a share on the assets managed with the inheritance money.

If Kirby wants to minimize the upfront expenses which can be described as the sum that is paid before a service or a job is done, then the first advisor is the better option. So the answer is A.

I hope this answer helps.

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When corruption is evident in governments the result is that
valentinak56 [21]

Answer: Industries have more difficulty opening since they will have to resort to bribes from government people.

Explanation: When corruption is very marked in a country, many people know that the way to obtain benefits is through certain bribes. In the case of industries, in order for them to open they have to resort to bribes made by government personnel to have the opportunity for their construction to take place.

8 0
3 years ago
Products is considering producing toy action figures and sandbox toys. The products require different specialized​ machines, eac
just olya [345]

Answer:

Answer explained below

Explanation:

A. Calculation of Payback Period

1. For Toy Action Figure

Total Investment = $ 1,000,000

First Two Years' Net Cash Flow= $ 371500 + $ 371500

= $ 743,000

Balance Investment to be Recovered from Third Year Cash Flow= Total Investment - First-two Year Net Cash Flow

= $ 1,000,000 - $ 743,000

= $ 257,000

Third Year Net Cash Flow = $ 371,500

Payback period = 2 Years + (12MOnths* $ 257000) / $ 371,500

= 2 Years + 8.30 Months

= 2 Years 8.30 Months

2. For Sandbox Toy Project

Total Investment = $ 1,000,000

First Two Years' Net Cash Flow= $ 540000 + $ 390000

= $ 930,000

Balance Investment to be Recovered from Third Year Cash Flow= Total Investment - First-two Year Net Cash Flow

= $ 1,000,000 - $ 930,000

= $ 70,000

Third Year Net Cash Flow = $ 310,500

Payback period = 2 Years + (12 Months* $ 70000) / $ 310,500

= 2 Years + 2.71 Months

= 2 Years 2.71 Months

B. ARR of the Projects

1. For Toy Action Figure

Total Cash Flows (Given) = $1,857,000

Total Investment (Given) = $ 1,000,000

Net Income= Total Cashflows - Total Investment

= $ 1,857,000 - $ 1,000,000

, = $ 857,000

ARR Year basis = ($ 857,000 / $ 1,000,000)*100 / 5 Years

= 17.14%

2. For Sandbox Toy

Total Cash Flows (Given) = $1,535,000

Total Investment (Given) = $ 1,000,000

Net Income= Total Cashflows - Total Investment

= $ 1,535,000 - $ 1,000,000

= $ 535,000

ARR Year basis = ($ 535,000 / $ 1,000,000)*100 / 5 Years

 = 10.70%

So, Company Internal Policy for both the Project is Fulfill but as per the calculation shown above company should invest in Toy Action Figure Because It will within the payback period and earn maximum Return to the company,

And

If the Sandbox Toy has $ 200,000 Residual value then also the income will not exceed the Toy figure so answer will not change in this condition also.

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Answer:

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In the short run, the aggregate supply curve will react to price level, which means it is upward sloping rather than vertical. If the price level increases, quantity supplied will increase. If the price level decreases, the quantity supplied will decrease.

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The Charlotte Hornets selected LaMelo Ball :)

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