Capital budgeting is the process in which organizations identify, evaluate, and make selections that require a lot of money to start but have long lasting benefits into the future. In this situation, making sure they can retain customers indefinitely is the ultimate goal so spending the money on capital budgeting and making the most lucrative business choices is important.
Answer:
<em>(A). Law of 68 per cent </em>
range = mean + /- 1(standard deviation)
= 9 + / -1(10)
= 9 - 1(10) to 9 + 1(10)
= -1 to 19
<em>(B). Law of 95 per cent </em>
range = mean +/- 1.96(standard deviation)
= 9 +/- 1.96(10)
= 9 - 1.96(10) to 9 + 1.96(10)
<em>= -10.6 to 28.6</em>
<em>(C). Law of 99 per cent </em>
range = mean +/- 3(standard deviation)
=9 +/- 310()
=9 - 3(10) to 9 + 3(10)
<em>= -21 to 39</em>
Answer:
The company could pay up to 866,965.89 dollars today to solve the current heat exchanger situation
Explanation:
We have to determinate the present value of 7 year annuity which increase at a rate of 7% when the cost of capital is 15% being the first quota 175,000 dollars
grow rate 0.07
required return 0.15
Cuota 175,000
n 7
PV = 866,965.89
Answer:
6.5%
Explanation:
Number of people unemployed = 237,000
Labor force = 5 million - 1.3 million - 50,000
Labor force = 3.65 million
Unemployment rate = Number of people unemployed/Labor force*100
Unemployment rate = 237,000/3.65 million*100
Unemployment rate = 6.4931501%
Unemployment rate = 6.5%
Answer:
-21%
Explanation:
Initial share price = $50
Share price after 1 year = $46
net return = (200 x $46) - $10,000 - ($5,000 x 5%) = $9,200 - $10,000 - $250 = -$1,050
rate of return of margined position = -$1,050 / $5,000 = -0.21 = -21%
when you operate on the margin, your earnings can increase or decrease dramatically. In this case, an 8% price decrease resulted in a 215 lose.
