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GenaCL600 [577]
3 years ago
7

Your friend brought up an investment opportunity that will generate cash flows of $5,000, $5,300, and $6,000 next three years, r

espectively. If your required rate of return on this investment is 12%, how much at most are you willing to pay?
Business
1 answer:
ahrayia [7]3 years ago
8 0

Answer:

The most I could pay for the investment is $12,960.09  

Explanation:

The maximum a rational investor could pay acquire an investment is the present value of all future cash flows receivable from the investment.

In the case, the present of all cash flows is calculated thus:

Years  Cashflows [email protected] 12% PV

1          5000 0.892857143  4,464.29  

2          5300 0.797193878  4,225.13  

3           6000 0.711780248  4,270.68  

   Total of present values               12,960.09

The discounting factor is calculated using the formula :

1/(1+r)^n where r and n are rate and number of years respectively.                                          

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a

Explanation:

6 0
3 years ago
Taylor, the human resource manager at a large manufacturing firm, wants to fill an entry-level management position with an inter
Neporo4naja [7]

Answer:

human resources inventory

Explanation:

According to my research on different human resource tools, I can say that based on the information provided within the question to find this information she should consult the organization's human resources inventory. This is an inventory that holds a list of all the basic information regarding an employees education, skills, physical information, salary etc. Which is exactly what Taylor needs in order to see if any current employee can be considered a candidate for the new job.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
The idea that the money supply does not affect real economic variables is called:________
Sergio [31]

Answer:

The correct answer is letter "B": monetary neutrality.

Explanation:

Austrian economist Friedrich A. Hayek (1899-1992) referred to monetary neutrality as a theory that states the changes in the money supply do not affect the <em>prices of goods, services, wages but no the economy as a whole</em>. According to Hayek, printing more money could increase the demand affecting some economic variables (such as the mentioned above), but in the long run, it does not have a relevant impact.

3 0
3 years ago
. The organizers of a conference in the Houston Convention Center are evaluating the possibility of setting up a computer area w
Mars2501 [29]

Answer:

They would need to have at least 3 computers

Explanation:

According to the given data we have the following:

Arrival rate = 15 persons per hour

Servicing rate = 60 / 10 = 6 persons per hour with one computer

Servicing rate with x number of computers = 6x per hour

Servicing rate at 90% utilisation = 6x (0.90) = 5.40x per hour

Therefore to service 13 arrivals per hour, we will need x computers = 15/ 5.40 = 2.78

With 2 computers, the service capacity will be 12 per hour and the utilisation will be 15/12 = 125%, which exceeds the organiser’s standard of 90% utilization.

With 3 computers, the service capacity increases to 18 persons per hour. If only 13 persons arrive, the utilisation rate will be 15 / 18 = 83.33%, below the required maximum of 90% utilisation.

Therefore, the 2.78 can be rounded off to next whole number 3 computers

4 0
3 years ago
Read 2 more answers
A wheat farmer in Nebraska takes a risk and starts a new farm on land that was previously thought unfit for growing wheat. If hi
PolarNik [594]

Answer:

Entrepreneurship

Explanation:Entrepreneurship - it is referred to as taking risk of producing new products or starting something new by utilizing the resources available in the area.

If after utilizing the resources lead the market value of resulted outcomes is greater than available resources then entrepreneur has a profit.

In the same way, the wheat farmer is starting to invest in the land which assumed to be not good for growing wheat.

7 0
3 years ago
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