Answer:
Explanation:
Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 12 percent.Year Project F Project G0 –$ 126,000 –$ 196,000 1 64,500 44,500 2 45,500 59,500 3 55,500 85,500 4 50,500 115,500 5 45,500 130,500 Required:(a) Calculate the payback period for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)Payback period Project F years Project G years(b) Calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)Net present value Project F $ Project G $ (c) Which project should the company accept?
Answer:
$100; $75
Explanation:
Given that:
- Tax revenue falls by 100 million dollars
- marginal propensity to consume (MPC) is 0.75.
Due to the fall in tax revenue, disposable income will increase by the same amount, that is, $100 million.
Consuption spending will initially increase by $75 million, as shown below:
= MPC × tax revenue fall
= 0.75 × $100,000,000 = $75,000,000
Answer:
A) $50
Explanation:
The computation of the intrinsic value of the stock is shown below:
But before that the required rate of return is computed by using CAPM
Required rate of return = Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)
= 5% + 0.5 × (13% - 5%)
= 5% + 0.5 × 8%
= 5% + 4%
= 9%
Now the intrisinc value is
= Dividend ÷ (required rate of return - growth rate)
= $6 ÷ (9% - (-3%)
= $6 ÷ 12%
= $50
Hence, the intrinsic value of the stock is $50
Therefore the correct option is A.
Answer: (2) Conformity
Explanation:
The conformity is one of the principle value and it basically refers to the behavior, attitude and the beliefs for the social and the political group.
The term conformity is basically used to describe the person behavior and also beliefs so that the person are able to fit in the specific groups.
It is the process of matching the norms that are implicit and shared by the individual groups for the interaction and this principle value are adversely affected.
Therefore, Option (2) is correct.
Answer:
False
Explanation:
Few of the characteristics of administrator account that a member of administrator group doesn't have is that an administrator account cannot be removed from administrators group, it cannot be locked out/deleted due to incorrect logon attempt and it has a blank password by default.
With this, a member of the administrator group does not have all the characteristics of the administrator account.
