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puteri [66]
3 years ago
7

Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all invest

ments. The company is considering two different investments. Each require an initial investment of $15,600 and will produce cash flows as follows: End of Year Investment A B 1 $ 8,600 $ 0 2 8,600 0 3 8,600 25,800 The present value factors of $1 each year at 15% are: 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is:
Business
1 answer:
My name is Ann [436]3 years ago
3 0

Answer:

Net present value  $1,363.50

Explanation:

The computation of the net present value of B is shown below:

Year         Cash flows         PVIFA factor at 15%      Present value

0              -$15,600                  1                                -$15,600

1                   0                        0.8696                              0

2                  0                        0.7561                                0

3                25,800                0.6575                      $16,963.50

Net present value                                                   $1,363.50

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You have a portfolio that consists of equal amounts of IBM stock and Treasury bills. If you replace one-third of Treasury bills
postnew [5]

Answer: increase

Explanation:

You have a portfolio that consists of equal amounts of IBM stock and Treasury bills. If you replace one-third of Treasury bills with more IBM stock , the expected portfolio return will increase, ceteris paribus

The expected return for a particular investment are the returns which a an investor expects when he or she invests in a particular investment. In the above scenario, there'll be an increase in the expected portfolio return.

7 0
3 years ago
Research has found that employees whose managers participated in leadership training programs reported ________ afterwards.
Allushta [10]

Research has found that employees whose managers participated in leadership training programs reported higher levels of organizational commitment afterwards.

<h3>Why is leadership development crucial for a company?</h3>

Managers and leaders are often encouraged through leadership skills training to: Discover fresh, creative approaches to managing and developing people.create fresh business chances.

Take on the bigger socioeconomic problems they are facing.

<h3>How might leadership abilities enhance work performance?</h3>

Effective leaders are ready to encourage their team, handle and assign tasks, hear criticism, and have the pliability to address issues in a workplace that is always evolving.

These are the qualities that hiring managers search for in candidates for leadership positions.

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5 0
2 years ago
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.
Arturiano [62]

Answer: $8.81

Explanation:

To solve this, add the present values of the dividends from years 3, 4 and 5 and then add the present value of the terminal value of the stock at year 5.

Year 3 dividend = $0.50

Year 4 dividend = 0.50 * (1 + 49%) = $0.745

Year 5 dividend = 0.745 * 1.49 = $1.11005

= Dividend in year 3 / (1 + required rate of return)³ + Dividend in year 4 / (1 + required rate of return)⁴ + Dividend in year 5 / (1 + required rate of return)⁵ +   (Dividend in year 5 * (1 + growth rate) / ( required rate of return - growth rate ) ) / (1 + required rate of return)⁵

= 0.5 / 1.16³ + 0.745/1.16⁴ + 1.11005/1.16⁵ + ( 1.11005 / (16% - 9%)) / 1.16⁵

= $8.81

5 0
3 years ago
The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pound
horsena [70]

Answer:

d. $40 F

Explanation:

Calculation to determine what The variable overhead efficiency variance for June is

First step is to calculate the SH

SH = 2,500 units × 0.4 hour per unit

SH= 1,000 hours

Now let calculate the Variable overhead efficiency variance

Using this formula

Variable overhead efficiency variance = (AH - SH) × SR

Let plug in the formula

Variable overhead efficiency variance= (980 hours - 1,000 hours) × $2 per hour= (-20 hours) × $2 per hour

Variable overhead efficiency variance= $40 F

Therefore Variable overhead efficiency variance is $40 F

8 0
3 years ago
Between 2003 and 2005, there was huge growth in the market for premium blue jeans priced at $200 or more per pair. Popular magaz
zimovet [89]

Answer:

Following are the solution to the given question:

Explanation:

Huge demand increase inside the Blue Jeans market led to rising costs between 2003 and 2005. The contour of desire went right.

With pricing just above the previous level, the producers are motivated to create more and therefore to increase the demand side and shift its supply curve to the right.

Greater amounts supplied produced a surplus in blue jeans that could only be sold if the prices decreased to attract buyers (the supply side), creating a new balance at a clean cost.

6 0
3 years ago
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