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aev [14]
3 years ago
12

Problem 1: G. Rifkin is considering investing some or all of a $60,000 inheritance. He looks at a one year cirtificate of deposi

t paying 6%, and/or a venture capital group project with a guaranteed 3% return but the potential of earning 10%. Mr. Rifkin woul like to invest the minimum amount of money neccessary to achieve the following
(i) An over all portfolio potential return of at least $4000. Note: The CD's guarantteed return is also its potential.
(ii) An over all portfolio guaranteed return of $2000.
a. Formulate a LP model and recommend an investment strategy (how much to invest in each investment).
b. How much can Rifkin keep for personal use?
Problem 1-1: Rifkin has decided to invest all his inheritance. Therefore, in addition to the two invetments mentioned above, he now looks also at an oil exploration investment. The return could be potentially 100% but he might also lose all his money. Therefore he set up risk protection conditions as follows:
(i) At most $30K will be nvested in oil.
(ii) At least $20K will be invested in CD.
(iii) The portfolio value must have a guarantteed value of at least $40K at the end of the year.
How can Rifkin maximize the potential return of his portfolio?

Business
1 answer:
Slav-nsk [51]3 years ago
3 0

Answer:

Explanation:

Using excel solver

model: min(total investment)

constraints:

total investment<= 60,000

potential return>= 4000

portfolio guaranteed return = 2000

CHECK THE IMAGES BELOW

) Req investments in CD and VC are provided in above table

b) For personal use he can keep = 60000-47619.05 = 12380.9

Problem 1-1: Forming new model in solver as per new conditions:

<h2>Check the excel document attached</h2>

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g Oregon Corp. prepares its financial statements annually and has a calendar year end. The adjusted trial balance ( NO MORE ADJU
Semmy [17]

Answer:

$1,700,000

Explanation:

The computation of the NET accounts receivable (the cash realizable value) at December 31, 2019 is shown below:

= Account receivable - allowance for doubtful debts

= $2,000,000 - $300,000

= $1,700,000

By deducting the allowance for doubtful debts from the account receivable we can get the net account receivable or the cash realizable value

Therefore we ignored the bad debt expense

5 0
2 years ago
Manuel Hoped to graduate from college by age 22 but finds himself enrolling for the first time at age 52. The anxiety Manuel fee
HACTEHA [7]

Answer:

Social clock

Explanation:

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5 0
3 years ago
Retepson, Inc. has been in business for over 50 years. Retepson is best known for its Guide to Colleges line of books designed f
Elina [12.6K]

Answer:

a) Anyone with Internet access can find any of the information included in the Guide to Colleges series.

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when we say innovation what we mean is a new idea, a new method, or a new way of doing things.

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3 0
3 years ago
A. The owner invested $16,200 cash in the company in exchange for its common stock.
Anon25 [30]

Answer:

a. Assets increase by $16,200; and Shareholders' equity increases by $16,200.

b. Assets increase by $800; and Assets decrease by $800.

c. Assets increase by $10,600; and Shareholders' equity increases by $10,600.

d. Assets increase by $260; and Liabilities increases by $260.

e. Assets increase by $9,600; and Assets decrease by $9,600.

Explanation:

The accounting equation that is impacted is given as follows:

Assets = Shareholders' equity + Liabilities

The impact of each transaction on individual items of the accounting equation are as follows:

a. The owner invested $16,200 cash in the company in exchange for its common stock.

Cash is an asset item, current asset to be specific; while common stock is one of the components of Shareholders' equity. The investment of $16,200 by the owner will therefore increase assets and Shareholders' equity.

Therefore, Assets increase by $16,200; and Shareholders' equity increases by $16,200.

b. The company purchased supplies for $800 cash.

Cash and supplies are both assets item, current assets to be specific. The purchase of supplies will increase the inventory of supplies which is an asset item by $800, while it will reduce cash which is another asset item also by $800.

Therefore, Assets increase by $800; and Assets decrease by $800.

c. The owner invested $10,600 of equipment in the company in exchange for more common stock.

Equipment is an assets item, fixed assets to be specific; while common stock is one of the components of Shareholders' equity. The investment of $10,600 worth of equipment by the owner will therefore increase assets and Shareholders' equity each by $10,600.

Therefore, Assets increase by $10,600; and Shareholders' equity increases by $10,600.

d. The company purchased $260 of additional supplies on credit.

Supplies is an assets item, current assets to be specific; while purchase on credit is a liability item, current liability which is an account payable to creditor of supplies. The purchase of supplies will increase supplies which is an assets item by $260, and it will also increasethe account payables to creditor of supplies.

Therefore, Assets increase by $260; and Liabilities increases by $260.

e. The company purchased land for $9,600 cash.

Cash and land are both assets item, current assets to be specific. The purchase of land will increase the inventory of land which is a fixed asset item by $9,600, while it will reduce cash which is another asset (current asset) item also by $9,600.

Therefore, Assets increase by $9,600; and Assets decrease by $9,600.

7 0
3 years ago
Suppose that a task in a project has the following time estimates: to optimistic completion time 11 weeks tm most likely complet
vekshin1

Answer:

6 weeks

Explanation:

Optimistic Completion Time  -  11 weeks

Most likely completion time   -   14 weeks

Pessimistic completion time   -   23 weeks

Compute the expected task variance in weeks. Recall that Variance is a measure of dispersion - a measure that shows the distance or spread between or among values of a variable.

Expected Variance is the average of the variance values.

First,

the variance between optimistic CT and most likely CT is (14 - 11) = 3 weeks

Second,

the variance between pessimistic CT and most likely CT is (23 - 14) = 9 weeks

The expected variance is the average of these two values and that's (3 + 9)/2 = 12/2  = 6 weeks

<em>So the expected variance from the mean completion time of 14 weeks is 6 weeks before or 6 weeks after. This accommodates both the optimist and the pessimist. </em>

8 0
2 years ago
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