Explanation:
Integrity is the quality of having strong ethical or moral principles and following them at all times, no matter who's watching. A person with integrity acts with honesty, honor, and truthfulness.
Answer:
To increase profit from interests by increasing duration of balance repayment.
Explanation:
The purpose of every business is to make profits and the reason why every credit card company includes a minimum payment is not just to make it easier to pay but by only making minimum payments, credit card holders could be kept as customers and paying interests on debt for longer.
Secondly, the more the periods the more likely you'll default on some of them and pay penalty fees which means additional income for the companies
Answer:
year net cash flow
0 -$150,000
1 $80,000
2 $65,000
3 $50,000
4 $40,000
A) NPV = -$150,000 + ($80,000 x .87) + ($65,000 x .756) + ($50,000 x .658) + ($40,000 x .572) = -$150,000 + $69,600 + $49,140 + $32,900 + $22,880 = -$150,000 + $174,520 = $24,520
B) Yes , because the net present value indicates that the return on the proposal is greater than the minimum desired rate of return of 15%. Since the NPV is positive ($24,520), it means that the cash inflows are higher than the cash outflows when we use a 15% discount rate.
Answer: 14.84%
Explanation:
To calculate the rate of return the investors received we will do a simple return formula to find out by how much, in terms of the Opening NAV, the fund has increased.
To find out how much the fund has increased by we can add up all the figures then deduct the opening balance.
= 39.71 + 0.64 + 1.13 - 36.12
= $5.36
$5.36 is the how much the fund has increased by.
Expressing it in percentage of the opening NAV per share we have,
= 5.36/36.12
= 0.14839424141
= 14.84%
14.84% is the rate of return that an investor received on the Yachtsman Fund in 2016.
