To complete the above question, please see below:
Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.)
<span>WACC 10.0% </span>
<span>Opportunity cost $100,000 </span>
<span>Net equipment cost (depreciable basis) $65,000 </span>
<span>Straight-line depreciation rate for equipment 33.333% </span>
<span>Annual sales revenues $123,000 </span>
<span>Annual operating costs (excl. depreciation) $25,000 </span>
<span>Tax rate 35%
</span>
The answer is <span>12,271</span>
$60 one year ago. The stock is now worth $70. During the year, the stock paid a dividend of $2.25. The total return to George from owning the stock would be 20% (after rounding off the answer to the nearest whole percent).
- Total return on share is the summation of dividend and price appreciation.
- Since, the dividend = $2.25
- Then, to ascertain price appreciation we need to subtract the dividend from the total return on the share.
- Price appreciation = $70 - $60 = $10
- Total return can be calculated hence.
- Total return = $10 + $2.25 = $12.25
- Therefore, the total return for George was $12.25.
- To round off the answer to the nearest whole percentage:
- Total return percent = $12.25/$60 = 20% approximately
Therefore, the total return to George from owning the stock would be 20%.
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Answer: centralization
Explanation:
When the decisions of a company are very risky and low-level managers lack decision-making skills, the company will tend to centralize.
Centralization is simply when an organizational activities especially those that has to do with decision making, planning, framing policies and strategies are all concentrated in a particular location group.
Nate finds the language of the contract to buy bedroom furniture difficult to understand due to "procedural unconscionability".
<h3>What is
procedural unconscionability?</h3>
Unconscionability that results from the contract-making process rather than from a contract's terms that are inherently unfair or unreasonable
Examples of Procedural Unconscionability is-
- influencing an underprivileged party who would not have otherwise signed the contract to do so.
- minimising important clauses in contracts for the sake of the underdog.
- If one side uses threats of violence against the other party, his family, or friends, this is known as coercion.
Therefore, Procedural unconscionability is based on elements that deprive a party of a meaningful choice, such as customer ignorance or a significant amount of unclear fine print.
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