Answer:
Project A
Years Cashflows Discount factor Present values
0 250,000 1 -250,000
1-10 45,100 6.144 277,094.40
Sum of all present value=NPV=27,094.40
IRR (by using trial and error method) = 12.4696%
Note: Discount factor for the year 1-10 is calculated by using annuity formula i.e [1-(1+10%)]/10% = 6.144
Project B
Years Cashflows Discount factor Present values
0 (350,000) 1 (350,000)
1 72,500 0.91 65,975
2 65,500 0.83 54,365
3 73,800 0.75 55,350
4 71,500 0.68 48,620
5 69,800 0.62 43,276
6 75,500 0.56 42,280
7 31,000 0.51 15,810
8 47,500 0.47 22,325
9 55,500 0.42 23,310
10 29,200 0.38 11,096
Sum of all present values=NPV=32,407
IRR(by using trial and error method=12.4186%
On the basis of NPV project B is better because it gives higher NPV than project A. Whereas, Project A is better than project B on the basis of IRR because project A has slightly higher IRR than project B.
b)The conflict between both the investment appraisal technique is likely due to different cash flow patterns of both the project. In such situation decision should be based on NPV because this is an absolute measure
Answer:
amount of commission (load) Jan must pay is $1755
Explanation:
given data
investment = $39,000
charges commission (load) = 4.5 percent
to find out
Calculate the amount of commission (load) Jan must pay
solution
we get amount of commission will be here as
amount of commission = investment × charges commission % ......................1
put here value we will get
amount of commission = $39000 × 4.5%
amount of commission = $39000 × 0.045
amount of commission = $1755
so amount of commission (load) Jan must pay is $1755
Answer:
solution below
Explanation:
(gain - loss)x35%
for megan
(5500 - 2242) * 35%
= $1140.3 is owed
a.) for megan
(5500-2100)*35%
= $1190
b. for margaret
(4000-2000) x 35%
=$700
c. For melissa,
It doesnt matter if she took this withdrawal at 65 years of age.
d. for morgan
110 - 100 = 10 this is the gain per share
total gain = 10 x 100 = 1000
income tax = 1000 x 0.35 = 350 dollars
e. for murphy,
his income tax would fall by
4000 x35% = 1400.
After this, selling the stock would have no effect on current taxes.
Answer:
The personal selling process can be defined as the personal contact between a seller and a potential buyer. In order to complete this process it is necessary to identify some steps that are implicit in the purchase.
Explanation:
The personal selling process can be defined as the personal contact between a seller and a potential buyer. In order to complete this process it is necessary to identify some steps that are implicit in the purchase.
Prospecting
Pre-approach
Approach
Presentation
Meeting objections
Closing the sale
Follow-up
Pre-approach: In Jane`s case, she first identify the prospects by list she purchase with the subscribers to the journal once normally people who buy this media are normally the ones who work in offices and therefore they may have some economic power.
Approach: Jane personally called the list in order to narrow the path and classify the ones that could be possible customers for her by having a closer and more friendly approach.
Presentation: The moment of the presentation occurs during the call when Jane explains that she is calling in order to know about their investment needs, once she is letting the possible customer know in an implicit way that she offers investment advice.
Meeting objections : In the second call, Jane is offering some information about the possible good investment customers can have, according to each subject she called there can be different kinds of questions that the seller would have to answer during the meeting objections step.
Closing the sale: and finally, Jane is trying to close the sale with the question she asks, would you like to open an account?
Answer:
b."just enough to meet the desires of the target market," anything else is waste.
Explanation: A Distribution Network is an interconnected Distribution centres or channels which are used for the transfer of materials from one point to another,a Distribution centre links up smaller retailers, wholesalers,customers etc
The intensity of a Distribution network or process should be made in such a way as to be enough to meet the desires and needs of the customers, there will not be any need to make more Distribution centres Available,as it will amount to waste of Resources.
