Answer:
e. portfolios P's expected return is equal to the expected return on stock B
Answer:
Long-term fixed-rate plan-$220,320.00
Short-term variable-rate plan-$224,280.00
The long-term fixed-rate plan is less costly as it has a lower interest expense
Explanation:
Total interest under the first plan=principal amount*interest rate*3 years
principal amount is $720,000
interest rate is 10.20%
total interest expense=$720,000*10.20%*3=$220,320.00
Interest expense under second plan=($720,000*8.50%)+($720,000*12.90%)+($720,000*9.75%)=$224,280.00
1. It’s probably B and 2 . It’s bit hard but if I had to go with something it would be C
Answer:
The initial outlay of this project is $240.000
Explanation:
Consider the following formula and variables
new machine cost 220.000
installation 7.000
shipping 3.000
working capital 10.000
Initial investment outlay = new machine cost + installation+ shipping+ working capital
=220.000+7.000+3.000+10.000=240.000
Sales: 48,000
Sales returns and allowances: <u>( 6,000)</u>
Net Sales 42,000
Cost of Sales:
Beginning Inventory: 900
net purchases 9100
ending inventory <u> (2,300) (7,700)</u>
Gross Margin 35,000
Operating Expenses <u> (6,200)</u>
Gross profit 28,800
