Answer: arithmetic Average Return =11.33%
Geometric Average Return=10.33%
Explanation:
Returns per year
Year 1 16%
year 2 23%
year 3 15
year 4 -11%
year 5 30 %
year 6 -5%
Total = 68%
Arithmetic Average = Total returns 0f ( year 1 -6) / number of years
= 68%/6 =11.33%
Geometric Average Return is given as
= ((1 + R1) × (1 + R2) × ... × (1 +Rn))(1/n) - 1
((1 + 16%) × (1 + (23%)) × (1 + 15%) x (1+ -11%) x (1+30%) x (1+ -5%))^1/6 - 1
((1.16 x 1.23 x 1.15 x 0.89 x 1.30 x (0.95)) ^1/6
((1.16 x 1.23 x 1.15 x 0.89 x 1.30 x 0.95)) ^1/6 -1
(1.8035073 )^1/6 - 1
= 1.10328 -1 = 0.10328 x 100 = 10.328% =10.33%
Answer:
The correct answer is Psychological.
Explanation:
Advertising is not only limited to advertisements in magazines, newspapers, radio, television or the Internet. In fact, it is practically in everything around us. The way to place the products in the department stores, the color and size of the potato chip packages, the price of the clothes, the subtlety of the words on the radio ... Everything that makes a product attractive and steals our attention serves as a powerful means to advertise it.
Therefore, all of us, when we buy or consume, seek to distinguish ourselves from others. In addition, this desire to stand out, to be different and unique, is what advertising psychology acts on. And when these individual differences are established, other concepts such as motivation arise in parallel.
Answer:
The maximum Southern Tours could pay to acquire the Holiday Vacations is the present is the value of the inflows to be generated from the target company.
The present of the target business is $519,799.59
Explanation:
That amount is the maximum that should be paid for the target business,depending on negotiation skills of Southern Tours' management.
A lower price could be bargained,which better makes the investment more profitable.
Find attached spreadsheet for detailed computations.
Answer:
a. borrowers gain at the expense of lenders
Explanation:
Inflation refers to the sustained increase of the price of a commodity over a period of time.
It can be caused due to increase in production cost or increased demand of a good or service.
The losers during inflation are the creditors because the money loaned out had more value or purchasing power compared to what is repaid. This is due to the fact the borrower will still owe the lender the same amount .
Answer: excused by Delta's failure to pay.
Explanation:
Delta Construction Corporation hires Eagle Electrical Company, as a subcontractor, to wire its new office building. After the completion of the work, Eagles is owed more than $50000.
Eagle's suspension of work is most likely due to the excuse by Delta's failure to pay. Delta has a right to pay up the money owed to Eagle. Lack of payment can lead to court cases.
