Answer:
It will take 1 year and 307 days to cover the initial investment.
Explanation:
Giving the following information:
Initial investment= $6,900
Cash flows:
Cf1= $4,200
Cf2= $5,100
Cf3= $6,300
Cf4= $5,500
Discount rate= 15%
<u>The payback period is the time required to cover the initial investment. We need to discount each cash flow.</u>
<u></u>
Year 1= 4,200/1.15 - 6,900= -3,247.83
Year 2= 5,100/1.15^2 - 3,247.83= 608.50
<u>To be more accurate:</u>
(3,247.83 / 3,856.33)*365= 307 days
It will take 1 year and 307 days to cover the initial investment.
1. Look for her toys in her toy chest. She didn’t even know that her brother hid her toys in the first place, so she’ll look for her toys in her toy chest, assuming she wants to play with them after dinner.
Hope this helps!
Answer:
The expected return on a portfolio is 14.30%
Explanation:
CAPM : It is used to described the risk of various types of securities which is invested to get a better return. Mainly it is deals in financial assets.
For computing the expected rate of return of a portfolio , the following formula is used which is shown below:
Under the Capital Asset Pricing Model, The expected rate of return is equals to
= Risk free rate + Beta × (Market portfolio risk of return - risk free rate)
= 8% + 0.7 × (17% - 8%)
= 8% + 0.7 × 9%
= 8% + 6.3%
= 14.30%
The risk free rate is also known as zero beta portfolio so we use the value in risk free rate also.
Hence, the expected return on a portfolio is 14.30%
Answer:
Credit card companies can invade your privacy by monitoring all your credit card transactions and making decisions, whether correct or incorrect, about your credit worthiness and your character.
Explanations:
All credit card transactions are logged into a data base which is accessible to credit card companies.
Therefore credit card companies can form opinions about your credit worthiness on the basis of your credit card transactions.
For example, if you use your credit card to pay for groceries, utilities, and ordinary bills, a credit card company could assume that you are in financial distress and make a decision to reduce your credit limit.
If a person uses a credit card often at a casino or gambling locations, that could also signify to credit card issuers that the person may not be using money wisely, and may not be willing to provide more credit to the gambler.
To sum it up, personal privacy is lost whenever a person uses a credit card. Credit card issuers may form opinions about a card holder that may be correct or incorrect, based on the person's credit card transactions.
