The reason why many investors are turning to independent advisors instead of large wall street firms is because they are offered more flexibility in investment options.
<h3>Why are people choosing independent advisors?</h3>
Independent advisors do not have to worry about a certain corporate policy or the interest of their shareholders because they have none.
This allows them to offer more investment options to people thereby allowing them the flexibility to pick the investment choices they prefer.
Find out more on independent advisors at brainly.com/question/16033676
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Answer:
The correct answer is D.
Explanation:
Giving the following information:
i= 0.1025
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
Project 1:
Year 0 1 2 3 4 CFS:
−$950 $500 $800 $0 $0
Year 1= 500 - 950= -450
Year 2= 800 - 450= 350
Payback period= 1 year + (450/800)= 1.56 years
NPV=161.68
Project 2:
Year 0 1 2 3 4 5:
−$2,100 $400 $800 $800 $1,000
Year 1= 400 - 2,100= -1,700
Year 2= 800 - 1,700= -900
Year 3= 800 - 900= -100
Year 4= 1000 - 100= 900
Payback period= 3 years + (100/1000)= 3.1 years
NPV= 194.79
Value lost= 194.79 - 161.68= $33.11
Answer:
5.32 years
Explanation:
Particulars Amount
Sales $16,700
Less: Expenses <u>$7,300</u>
Profit before tax $9,400
Less: income tax <u>$3,760</u>
Net income $5,640
Add: Depreciation <u>$4,700</u>
Annual Cash flow <u>$10,340</u>
So, the payback period for the new machine = Total investment/Annual cash flow = $55,000 / $10,340 = 5.319148936170213 = 5.32 years
Answer:
The PV is 125,000
Explanation:
We need to solve for the present value of a perpetuity:
The yearly amounts are 10,000
while the current interest rate is 8% = 8/100 = 0.08
10,000 / 0.08 = 125,000
the perpetuity is worth 125,000 dollars
Note, when the market rate changes the value of the perpetuity also changes as the constant cash flow is dividend over a larger or lower rate generating smaller or higher amounts, respectively
Answer:
The variable cost (related to the production volume) will be 5,865 in total per week (220 units)
or 26.66 per unit
Explanation:
220 units x 30 dollar total unit cost = 6,600
the total cost is compose of both, variable and fixed cost so we have to subtract the fixed cost to arrive to the variable cost.
total cost = fixed + varible
total - fixed = variable
6,600 - 735 = 5,865
The variable cost are 5,865 in total
while: 5,865 / 220 = 26,66 per unit