When buying or selling a futures contract, the trader commits what amount of funds the amount of the initial margin. A futures contract is a legal agreement to buy or sell assets, mainly commodities, at a set price but it will be delivered and paid for later. Based on the definition of a futures contract, the trader will have to commit to the initial amount that was set to be traded when the legal agreement was made.
Answer:
The NPV from opening the branch office is negative ( -$106668.08). Thus the branch office should not be opened.
Explanation:
The decision to open the branch office will be taken based on the NPV provided by opening of the branch office. If the NPV of a project is positive based on the required rate of return used as a discount rate fro cash flows, the investment is worth undertaking.
The net present value (NPV) for a project can be calculated as,
NPV = CF1 / (1+r) + CF2 / (1+r)² + ... + CFn / (1+r)^n - Initial Outlay
Where,
- r is the appropriate discount rate
- Initial Outlay is the Initial cost of the project
- CF represents cash flows from the project
As the required return is 16%, we will take this as the appropriate discount rate.
NPV = 45000 / (1+0.16) + 120000 / (1+0.16)² + 150000 / (1+0.16)³ +
150000 / (1+0.16)^4 + 150000 / (1+0.16)^5 - 485000
NPV = - $106668.08
As the NPV from project is negative at a required return of 16%, the project should not be under taken and the branch office should not be open.
The answer is flighting advertising schedule. It is a publicizing progression or timing design in which promoting messages are booked to keep running amid interims of time that are isolated by periods in which no publicizing messages show up for the promoted thing.
Answer: 189400
Explanation:
The dollar amount of sales that must be made to produce the target income would be:
= (Fixed costs + Target profit) / Contribution margin ratio
= (80000 + 14700) / 50%
= 94700 / 50%
= 94700 / 0.5
= 189,400
Answer:
Some of these funding options are for Indian business, however, similar alternatives are available in different countries.
- Bootstrapping your startup business
- Crowdfunding As A Funding Option
- Get Angel Investment In Your Startup
- Get Venture Capital For Your Business
