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fredd [130]
3 years ago
11

Which one of these statements related to discounted payback is correct?a) the discounted payback period decreases as teh discoun

t rate increasesb) discounted payback is biased towards long-term projectsc) discounted payback is used more frequently in business than paybackd) discounted payback does not require a cutoff pointe) payback is a better method of analysis than discounted payback
Business
1 answer:
Free_Kalibri [48]3 years ago
5 0

Answer:

A) the discounted payback period decreases as the discount rate increases

Explanation:

The discounted payback period is used to determine the profitability of an investment project.

A not discounted payback period is how long does it take for the cash flows of a project to recoup the investment's cost without considering the value of money in time. By applying a discount to the cash flows, the discounted period will more accurately measure the length of time needed to recoup an investment using current dollars.

The higher the discount rate, the longer it will take for the cash flows to cover the investment's cost, so if the discount rate lowers, then the discounted payback period will be shorter.

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You currently own 900 shares of JKL which is an all-equity firm with 250,000 shares of stock outstanding at a market price of $4
Wittaler [7]

Answer:

90 shares

Explanation:

Calculation to determine How many shares of JKL stock must you sell to unlever your position if you can loan out funds at 6.5 percent interest

First step is to calculate Your initial investment

Your initial investment = 900 x $40

Your initial investment = $36,000

Second step is to calculate JKL value of stock

JKL value of stock = [250,000 - ($1M/$40)] x $40 JKL value of stock = $9M

Third step is to calculate JKL Total value

Value of Debt = 1M

JKL Total value = 9M + 1M

JKL Total value = 10M

Fourth Step is to calculate You new stock position

JKL Wight Stock = 9M/10M = 9/10

You new stock position = [9/10($36,000)]/10

You new stock position= $32,400/40

You new stock position=810 shares

Now let calculate the Number shares sold

Number shares sold = 900 Shares - 810 Shares

Number shares sold = 90 shares

Therefore the numbers or shares of JKL stock that must you sell to unlever your position if you can loan out funds at 6.5 percent interest is 90 shares

3 0
2 years ago
One reason why entrepreneurs should protect their innovations and creations (in economics)​
irina1246 [14]

for future reference

6 0
3 years ago
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Vilka [71]
Overtype it’s the only one that makes sense out of those choices
6 0
2 years ago
Audience:
ss7ja [257]

Answer:

E=mc2

Explanation:

5 0
3 years ago
charmaine earns $11 an hour at her parttime job. show that the relationship between the amount she earned and the number of hour
AURORKA [14]

Answer:

y = 11 x

Explanation:

The relationship between two variables x,y is said to be a proportional relationship if the ratio between the values of the two variables is constant:

\frac{y}{x}=k (3)

where k is the a constant value valid for all pairs (x,y).

In this problem, we are told that Charmaine earns $11 per hour. Here we call:

y = amount of money earned

x = time

We can see that the relationsip between x and y is proportional. In fact:

- after 1 hour, Charmaine has earned $11 (1)

- after 2 hours, Charmaine has earned $22 (2)

.. and so on

For (1), we find

\frac{y}{x}=\frac{11}{1}=11 so k = 11

For (2), we find

\frac{y}{x}=\frac{22}{2}=11 so k = 11

So, k = 11 for every pair (x,y), so the two variables have proportional relationship.

Moreover, we can write an equation that relates the two variables re-arranging eq.(3).

y=kx\\\rightarrow y=11x

6 0
3 years ago
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