Which of the following is an example of a soft skill?

When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected retur

Bezzdna [24]

Answer:

e. None of the above.

Explanation:

When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due due to new information related to the stock". This is because any new information on stock which is unrelated to stock prices will lead to an increase/decrease in the stock price over a period of time.

3 0

3 years ago

Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 37,500 –$ 37,50

sp2606 [1]

Answer:

Year Cash Flow (A) Cash Flow (B)

0 -37,500 -37,500

1 17,300 5,700

2 16,200 12,900

3 13,800 16,300

4 7,600 27,500

1) Using an excel spreadsheet and the IRR function:

IRR project A = 20%

IRR project B = 19%

2) Using the IRR decision rule, Bruin should choose project A.

3) In this case, since the length of the projects is only 4 years, then there should be no problem with the IRR decision rule, but for projects with longer time lengths, the discounts rates might vary and the best option is to use the modified internal rate of return (MIRR). But in this case the NPV of project B is higher, then Bruin should probably project B because it has a higher NPV. The NPV is always more important then the IRR.

4) Again using an excel spreadsheet and the NPV function:

NPV project A = $6,331

NPV project B = $8,139

5) first we must subtract cash flows from A by the cash flows from B:

1 $11,600

2 $3,300

3 -$2,500

4 -$19,900

then we calculate the IRR = 16%

Bruin should be indifferent between the two projects at a 16% discount rate. That means that at discount rates above 16%, you should choose project A, but at discount rates below 16%, you should choose project B

6 0

3 years ago

Appalachian Airlines began operating in 2010. The company lost money the first year but has been profitable ever since. The comp

Aleksandr [31]

Answer:

$800,000

Explanation:

The computation of the taxes paid by the company in 2013 is shown below:

Year Taxable Income Carry forward amount Year-end amount

2010 -$4,000,000 $0

2011 $1,000,000 - $4,000,000 $3,000,000

2012 $2,000,000 -$3,000,000 $1,000,000

2013 $3,000,000 -$1,000,000 $2,000,000

Now the tax paid is

= $2,000,000 × 40%

= $800,000

4 0

3 years ago

You want to provide spending money for your 4 year old during their college years. You can afford to deposit $600/year for the n

umka2103 [35]

Answer:

The Annual investment that you will to make will be $1,069.01

Explanation:

In order to calculate the uniform annual investment that will you have to make on the child's 8th through 17th birthdays to meet this goal, we have to make the following calculations:

First we need to calculate the Amount you have at the end of child's 8th year = 600*(1+0.05)^4 + 600*(1+0.05)^3 + 600*(1+0.05)^2 + 600*(1+0.05)^1 = $2,715.38

Therefore, Value of this amount at the end of 17th year = $2715.38 * (1+0.05)^9 = $4,212.45

So, Amount required to be saved = $16,000 - $4,212.45 = $11,787.55

Therefore, to calculate the annual investment we would have to use the following formula:

FV of annuity = P*[((1+r)^n - 1)/r]

P - Periodic payment =?

r - rate per period = 0.05

n - number of periods = 17-8 = 9

$11787.55 = P*(((1+0.05)^9 - 1)/0.05)

P = $11,787.55/11.03 = $1,069.01

The Annual investment that you will to make will be $1,069.01

8 0

3 years ago

The recent global boom in the market price for scrap steel and aluminum leads to a sudden rise in the theft of everyday metal ob

Kipish [7]

Answer:

C

Explanation:

The recent global boom in the market price for scrap steel and aluminum has led to a sudden rise in the theft of everyday metal objects like manhole covers, guard rails, and empty beer kegs.

8 0

3 years ago