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3 years ago

in determining the appropriate discount rate for an individual project, the financial manager will be most influenced by the

Business

1 answer:

bulgar [2K]3 years ago

3 0

Answer:

Coefficient of variation

Explanation:

The coefficient variation is determined by dividing the standard deviation from the expected return. It represents the value of the risk that contains to earn one unit of return. The lesser the coefficient of variation the better it is for making the decisions by the finance manager

Therefore according to the given options, the coefficient of variation should be chosen

You might be interested in

What is a future consequence of making minimum payments each month?

Luden [163]

Answer:

A: a longer period in debt

Explanation:

Minimum payments are generally associated with credit card debts. A credit card allows the user to spend on credit. At the end of every month, the credit card company sends the customer a statement detailing the amount they owe. The statement shows the total outstanding amount and the minimum amount payable.

Paying the total outstanding amount clears the total credit card debt helping the customer avoid interest charges. Paying the minimum amount means the customer will have a balance carried forward to the following month, attracting interest charges.

Paying the minimum amount allows the user to continue using the credit card. There will be a balance carried forward and interest charges if only the minimum amount is paid. Due to the high-interest rates that credit cards charge, the debts increase exponentially. The cardholder will require a long time to clear the debts, which means that the interest charges and penalty amounts will be high.

6 0

3 years ago

Nunavet Ocean Cruises sold an issue of 12-year $1,000 par bonds to build new ships. The bonds pay 4.85% interest, semi-annuall

frez [133]

Answer:

bond market value $660

Explanation:

We need to calculate the present value of the maturity and the cuopon payment using the effective rate of 9.7%

First we do the annuity:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 24.25 (1,000 face value x 4.85 bond rate / 2 )

time 24.00 (12 year 2 payment a year)

rate 0.04850 (current rate divide by 2 to get it annually)

$24.25 \times \frac{1-(1+0.0485)^{-24} }{0.0485} = PV\\$

PV $339.55

Then present value of the maturity

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00 the face value of the bond

time 24.00

rate 0.04850

$\frac{1000}{(1 + 0.0485)^{24} } = PV$

PV 320.89

Finally we add them together:

PV coupon payment $339.5545

PV maturity $320.8910

Total $660.4455

rounding to nearest dollar

bond market value $660

7 0

3 years ago

Marginal cost-benefit analysis and the goal of the firm Ken Allen, capital budgeting analyst for Bally Gears, Inc., has been

True [87]

Answer:

1) The marginal (added) benefits of the proposed new robotics.

560,000 - 400,000 = 160,000

2) The marginal (added) cost of the proposed new robotics.

220,000 - 70,000 = 150,000

3) The net benefit of the proposed new robotics.

160,000 - 150,000 = 10,000

4) What should Ken recommend that the company do? Why?

Replace the existing robotics because the net profit is positive

5) What factors besides the costs and benefits should be considered before the final decision is made?

A. Whether there will be additional training necessary with the new robotics.

B. Whether even better robotics may be available in a short while.

C. What will be the energy consumption of the new robotics.

5 0

3 years ago

Assume that you and your best friend each have $1,000 to invest. You invest your money in a fund that pays 10% per year compound

marishachu [46]

Answer:

correct answer is c. You both have the same amount of money

Explanation:

given data

invest = $1000

pay compound interest = 10%

pay simple interest = 10%

time = 1 year

solution

we get here difference in the total amount that is your friend money - your money .................1

so difference in the total amount = invest × $(1+rate)^{time}$ - [ invest + ( invest × rate × time) ] ......................2

put here value

difference in the total amount = $1000 × $(1+0.10)^{1}$ - [$1000 + ( 1000 × 10% × 1) ]

difference in the total amount = 0

so correct answer is c. You both have the same amount of money

7 0

3 years ago

Doug and Kayla formed a partnership with capital contributions of $220,000 and $320,000, respectively. Their partnership agreeme

Mandarinka [93]

Answer:

The correct answer is $79,000 and $37,000.

Explanation:

According to the scenario, the given data are as follows:

Net income = $116,000

Doug's Salary = $52,000

Receive an interest = 10%

So, the amount to be shared equally = [$116,000 - $52,000 - ( 10% × $220,000) - ( 10% × $320,000)] ÷ 2

= $5,000

So, Doug share = $52,000 + ( 10% × $220,000) + $5,000

= $79,000

Kayla share = (10% × $320,000) + $5,000 = $37,000

5 0

3 years ago