We need to compare the total expenses between the two options.
Option 1: We will purchase motherboards
Expenses = $65 * 50,000
Expenses = $3,250,000
Option 2: We will manufacture our own boards
Expenses = ($32*50,000) + ($10*50,000) + ($16*50000) + $75000
Expenses = $2,975,000
We choose option 2 since it is lesser by $275,000.
Answer:
a) Zero
Explanation:
As we know that
beta = Covariance (Stock return , Market return) ÷ market return variance
Now in the case when the covariance of return that lies between the stock and the market equivalent to zero so the beta of the stock would be zero
As if you divide by zero so the result would be zero
Therefore as per the given option, the option A is correct
Answer: 14.59%
Explanation:
The Internal Rate of Return(IRR) is the discount rate that brings the Net Present Value to zero. It is used to decide the viability of projects. The project is generally considered viable if the Cost of capital is less than the IRR.
You can use Excel to calculate the IRR;
= IRR(-15,800,6,500,7,800,6,300)
From the picture attached you can see that the IRR is 14.59%
Answer:
Most insurance companies will waive surrender charges in the event except the person who fake the injury or death