Answer: d. Entire initial investment will not be recovered.
Explanation:
The Payback period by definition is the amount of time it will take a Project to recover the initial investment into it. For example, if a project had an investment of $20 million and made $5 million every year, the Payback period would be 4 years.
Now, if the amount of time it will take to recover an investment is longer than the expected amount of time the project will run (expected useful life) then logically speaking that would mean that the Investment would not be entirely recovered because the project will be done before it can pay off the investment hence Option D is correct.
<span>Each of these categories adds to the overall unemployment total. In this case, we would add all four values to find the total number of unemployed persons. (10+12+13+12) gives a total of 47 unemployed persons in the pool. Re-entrants and new entrants might sound like they are not unemployed, but these terms, per BLS definitions, are not yet employed so they do not leave the "unemployed" ranks.</span>
Answer: The answers to the questions are provided below.
Explanation:
1. The Required Rate of Return(RRR) is the absolute minimum return on an investment that an individual or firm would accept for the investment to be considered worthwhile. The required rate of return helps in deciding whether an investment is worth the cost or not.
An expected rate of return helps in knowing out how much one can expect to make from an investment. An expected rate of return is the return on investment that an individual or firm expects to make when investing in a stock.
The RRR is the least possible rate which would entice someone to invest while the expected rate of return is what the person plan to make from that investment and its calculation is based on probability.
When there is difference between the required rate of return and expected rate of return for an asset at a specific period of time, it means that the economic conditions aren't normal as there is either inflation or deflation in the market.
2. The holding period return is the total return gotten from holding an asset over a particular period of time which is known as the “holding” period while the expected return is the return based on probability-weighted average of likely returns from an investment.
3. Diversification is a technique that is applied to reduce risk through the allocation of investments among several financial instrument and industries. Diversification aims to maximize the returns through investment in different sectors because each sector will likely react differently when there's a risk. Investing in more than one asset through diversification is essential because each asset will react differently when a risk occurs.
Answer:
$889.70
Explanation:
The computation of the net present value is shown below:
= Present value of all yearly cash inflows after applying discount factor - initial investment
where,
The Initial investment is $10,000
All yearly cash flows would be
= Annual amount received × PVIFA for 4 years at 4%
= $3,000 × 3.6299
= $10,889.70
Refer to the PVIFA table
So, the net present value is
= $10,889.70 - $10,000
= $889.70
Answer:
C. hiring and laying off employees to match the demand forecast over the planning horizon.
Explanation:
Chase strategy is the strategy in which the demand of the market is looked upon. According to the strategy, the production is made according to the demand of the customer and the action is taken accordingly. By adopting this strategy, the saving in the costs is made. The industries in which the perishable items are made is very common.
