Answer:
The incremental revenue the company gets is:
= Labor cost decrease - Other cash increase
= 753,000 - 216,000
= $537,000
Depreciation = 105,000/ 9
= $11,667
Annual Cashflows (Year 1 - 9)
= (Incremental revenue - Depreciation) * ( 1 - tax) + Depreciation
= (537,000 - 11,667) * (1 - 34%) + 11,667
= $358,386.78
Cashflow in year 0
= Cost of equipment + Investment in net working capital
= -105,000 - 24,000
= -$129,000
Answer:
Money Supply
Explanation:
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Answer:
The amount of maximum net loss is $100
Explanation:
The butterfly spread comprise of buying 100 options with the strike price of $60 and $70 and the selling 200 options with the strike price of $65.
The maximum loss is when the strike price is less than $60 or be greater than $70. The aggregate payoffs from the options will amount to $0.
The cost of setting up the butterfly spread is:
= 11 × 100 + 18 × 100 - 14 × 200
= $100
Therefore,the net loss will be $100
Answer:
the investment's coefficient of variation is 1.25.
Explanation:
The coefficient of variation relates the units of return to the units of risk. It expresses the unit of risk per 1% of return as follows :
<em>Coefficient of Variation = Standard Deviation ÷ Return</em>
Therefore,
Coefficient of Variation = 10 ÷ 8
= 1.25
Answer: option "A" is correct
Explanation:
It's an official context for other options.
