Answer:
NPV= 1,036.16
Explanation:
Giving the following information:
Initial investment= $9,000
Cash flows= $2,700 at the end of each of the next four years.
Interest rate= 3%
To calculate the net present value (NPV), we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf1= 2,700/1.03= 2,621.36
Cf2= 2,700/1.03^2= 2,545
Cf3= 2,700/1.03^3= 2,470.88
Cf4= 2,700/1.03^4= 2,398.92
Total= 10,036.16
NPV= -9,000 + 10,036.16
NPV= 1,036.16
It expanded the credit industry because all americans credit was effected by the great depression
Answer:
A= $4,838.95 monthly
Explanation:
Giving the following information:
She is currently planning to retire in 30 years and wishes to withdraw $10,000/month for 20 years from her retirement account starting at that time.
First, we need to calculate the amount needed for retirement:
FV= 10,000*12*20= 2,400,000
Now, we can use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
Effective rate= 0.02/12= 0.0017
n= 12*30= 360
A= (2,400,000*0.0017)/[(1.0017^360)-1]
A= $4,838.95 monthly
Answer:
FIFO 480 euros
LIFO 400 euros
PMP 460 euros
Explanation:
Unidades disponibles:
100 existencia inicial
300 compra
FIFO
Primero se venden las unidades de existencia inicial y luego las de la compra:
100 existencia inicial y 220 de la compra.
Inventario final: 80 unidades a 6 euros cada una = 480 euros
LIFO se vende primero la compra:
300 de compra y 20 de existencia inicial
Inventario final 80 unidades a 5 euros cada una = 400 euros
Costo Promedio Ponderado:
100 unidades a 5 + 300 a 6 = 500 + 1800 = 2300 euros
400 unidades costaron 2300 euros
en promedio: 2300 / 400 = 5.75
inventario final 80 unidades a 5.75 = 460 euros
Answer:
Portfolio's beta is 1.04.
Explanation:
Portfolio's beta is the weighted average beta. So, take weightage of each stock, multiply it with the respective beta, and add the results.
Finding Portfolio value for Weightages:
Total Amount Invested OR Portfolio value is = 10,000 + 40,000 = $50,000
Weighted Average Beta:
(10,000 / 50,000) * (.4) + (40,000 / 50,000) * (1.2) = .08 + .96 = 1.04.
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