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Pepsi [2]
3 years ago
11

Suppose Balin has $100 to invest in an opportunity that returns, for every $100 invested, $120 if it goes well but only $80 if i

t goes poorly. If leverage allows Balin to borrow $90 for every $10 he invests, what are his rates of profit and loss, respectively, if he borrows the full amount to invest in the opportunity?
A. 33.3 percent profit; 50 percent loss
B. 20 percent profit; 20 percent loss
C. 1,100 percent profit; 100 percent loss
D. 200 percent profit; 100 percent loss
Business
1 answer:
iVinArrow [24]3 years ago
4 0

Answer:

D) 200 percent profit; 100 percent loss.

Explanation:

There is a 50% chance that the company will make profit (20% profit) and 50% chance that it will lose money (20% loss).

Balin borrows $90 and invests $10 from his own money.

50% profit chance = $120 - $90 = $30 (200% profit)

50% loss chance = $80 - $90 = -$10 (100% loss)

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This year, Company LI built a light industrial facility in County G. The assessed property tax value of the facility is $20 mill
const2013 [10]

Answer:

Net Revenue=$120,000

Explanation:

Given Data:

Tax abated=4%

Assessed property tax value of the facility=$20,000,000

New assessed property tax value of the facility=$23,000,000

Required:

Net effect on County G’s current year tax revenue from the abatement=?

Solution:

Decrease in revenue=(0.04*$20,000,000)

Decrease in revenue=$800,000

Decrease in Revenue due to economic boom=0.04*$23,000,000

Decrease Revenue due to economic boom=$920,000

Net Revenue= Decrease Revenue due to economic boom-Decrease in revenue

Net Revenue=$920,000-$800,000

Net tax Revenue=$120,000

8 0
3 years ago
Surfer sam company produced 4,000 units of product that required 2.5 standard hours per unit. the standard fixed overhead cost p
Svet_ta [14]

The fixed factory overhead volume variance is $400 (unfavorable)

solution

Fixed Overhead Volume Variance = Applied Fixed Overhead – Budgeted Fixed Overhead

Applied Fixed Overhead = 4,000 units ×2.5 hrs per unit×$0.80 = $8000

Applied Fixed Overhead= 4,000 units ×2.5 hrs per unit×$0.80 = $8000

and

Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400

Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400

Fixed Overhead Volume Variance = $8000- $8400 = $400 (unfavorable)

Fixed Overhead Volume Variance = 8000- 8400 = 400 (unfavorable)

3 0
3 years ago
Next week, Mortimer is preparing to go to work for the Illinois department of Child Services. He was surprised when his friends
Fittoniya [83]

Answer:

The implication is that the Illinois Department of Child Services is a unionized workplace.

Mortimer will derive better benefits that surpass the costs of membership.  He is covered in all collective bargains, even when he resigns his union membership.  Unions negotiate for better working conditions, higher pays, and improved benefits.

When Mortimer has any grievance against the department, the union will also represent him, thereby making his life easier since unions can negotiate better with employers than individual workers.

Mortimer is even lucky to find a job at a unionized workplace because the jobs are not usually advertised as union members easily bring in their relatives and friends to occupy such vacancies.

Explanation:

Most of the disadvantages that Mortimer should complain about unions are disadvantages to the employer and not to him as an individual worker.  For the employer, the union acts as a form of monopoly that can decide whether the workers would work or not.  The unionized workers are not easy to replace with other workers.

8 0
3 years ago
Management team of Wolverine Corp. is considering the purchase of a new piece of equipment. They believe that new equipment is m
muminat

Answer:

Wolverine Corp.

a. The accounting rate of return = 50%

b. The payback period = 6 years ($200,000 * 6)

c. The net present value = ($39,600)

d. The net present value at 15% = ($237,200)

Explanation:

a) Data and Calculations:

Initial investment cost in new equipment = $1,200,000

Annual incremental net income from cost savings = $200,000

Salvage value of the new equipment = $200,000

Estimated useful life of equipment = 8 years

Hurdle rate = 10%

a. Accounting rate of return = (($200,000 * 8 + $200,000) - $1,200,000)/$1,200,000

= ($1,800,000 - $1,200,00)/$1,200,000

= $600,000/$1,200,000 * 100 = 50%

NPV at 10% hurdle rate:

Initial investment = $1,200,000 * 1 = $1,200,000

Annual incremental savings:

= $200,000 * 5.335 =                        $1,067,000

Salvage value = $200,000 * 0.467         93,400

Total benefits                                     $1,160,400

NPV =                                                    ($39,600)

NPV at 15% hurdle rate:

Initial investment = $1,200,000 * 1 = $1,200,000

Annual incremental savings:

= $200,000 * 4.487 =                           $897,400

Salvage value = $200,000 * 0.327         65,400

Total benefits                                      $962,800

NPV =                                                  ($237,200)

4 0
3 years ago
This Government Representative is appointed by the Contracting Officer to serve as a technical liaison between the Government an
Alex Ar [27]

Answer:

Contracting Officer Representative

Explanation:

  • An agent of a contracting officer is a person appointed in compliance with the subdivision of DFARS .and approved by the contracting agency in law to automate repetitive technological or essential functions.
  • A security officer is a man who shares information to interact and coordinate their events between two organizations.

by these process COR work.

3 0
3 years ago
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