The idea that many media products are digital files of ones and zeros sold in physical containers, is known as: atoms to bits
<span>Future Value=Payment*[(1+i)^n-1]/i where i is the interest rate and n is the number of payments. N is 36 (3 years *12 months per year) and our monthly interest rate is 4.4%/12.
Doing the math, 10000=Payment/38.4089665
Payment=260.36</span>
Answer:
a. The Coefficient of variation is expressed as;
= Standard Deviation/Expected return
Choice A
= 1,520/1,870
= 0.813
Choice B
= 840/2,000
= 0.42
Choice C
= 710/1,590
= 0.447
b. The coefficient of variation measures the volatility of the return of the investment. The more volatile it is, the more risky it is. A risk Averse investor would go for the one with the least Coefficient which is Choice B in this case.
$42.25
- trade prices that are shown on the tape DO NOT include commission.
Answer:
a. $2,465.82
b. $3,539.68
c. Yes, we should
Explanation:
Annual cost to maintain old forklift is $5,000
Equivalent Annual Cost (EAC) of new forklift = (Asset price x discount rate)/(1-(1+discount rate)-n), in which n is the number of year for usage of this forklift?
If discount rate is 4% per year, the EAC of new forklift is $2,465.82
= ($20,000x4%)/(1-(1+4%)-10)
If discount rate is 12% per year, the EAC of new forklift is $3,539.68
= ($20,000x12%)/(1-(1+12%)-10)
We should replace because with such above discount rate, the old forklift is more costly than the new one
