Answer:
No, the cost of the annual premium for 10 years was less than the accident claims
Explanation:
Since in the question it is mentioned that the annual premium is $1,200, $200,000 is the bodily injury coverage and $100,000 should be the property damage coverage
Also the $40,000 and $20,000 represent the medical cost and the car damage
So here the cost should not outweight the benefit of the transferring the risk as the annual premium cost for ten years should be lower than the accident claims
Answer:
d. directly investing in a foreign country
Explanation:
A subsidiary is a firm that is wholly or partially owned by another bigger corporation. A foreign subsidiary is a business owned by another company whose headquarters are in a different country. The foreign subsidiary is formed and managed as per the laws of the country in which it operates.
A corporation establishing a foreign subsidiary will be directly investing in another country. Foreign direct investment is an investment performed by an entity in one country into business interests located in another country. Jose's company will acquire a business, and its assets be located in a foreign country.
Answer:
$115,035
Explanation:
Calculation for what the The net present value of the project is closest to:
First step is to calculate the Present value of annual cash flows
Using this formula
Present value of annual cash flows = Annual Cash Flow * PVA of * (11%, 4 years)
Let plug in the formula
Present value of annual cash flows = $ 137,000 * 3.1024456895909
Present value of annual cash flows =$425,035
Now let calculate the net present value of the project
Net present value of the project =$425,035-$ 310,000
Net present value of the project=$115,035
Therefore the The net present value of the project is closest to: $115,035
