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pshichka [43]
3 years ago
10

Kermit plans to open a boutique. The initial investment is $10,000. He has to spend $1,500 in annual operations and maintenance.

The boutique generates $3,000 in revenues every year. Kermit uses a 10 year planning horizon and a MARR of 12%. The correctly calculated Rate of Return for this project is ________________%.
Business
2 answers:
bekas [8.4K]3 years ago
7 0

Year Initial Annual Maintenance Annual Revenue Total Cash Flow

0 -$10,000 -$10,000

1 -$1,500 $3,000 $1,500

2 -$1,500 $3,000 $1,500

3 -$1,500 $3,000 $1,500

4 -$1,500 $3,000 $1,500

5 -$1,500 $3,000 $1,500

6 -$1,500 $3,000 $1,500

7 -$1,500 $3,000 $1,500

8 -$1,500 $3,000 $1,500

9 -$1,500 $3,000 $1,500

10 -$1,500 $3,000 $1,500

Internal Rate of Return 8.1442% [IRR() in excel]

The rate of return is 8.1442 which is less than MARR of 12% investment is not worth it

Setler [38]3 years ago
3 0

Answer:

8.14

Explanation:

The Rate of Return is 8.14 from my calculations which you can find in the attached file.

Now since the Rate of return is 8.14. Which is less than MARR of 12%, it shows that investment is not good.

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Answer:

She owes 4500 because she leased the apartment for 1 year and her yearly total would be 6,000 but since she left after three months the amount she paid was 1,500 and 6,000 - 1,500 is 4,500 that is how much she owes.

Explanation:

I hope this helped have a great day!

5 0
3 years ago
Steaks n’ Fries Restaurant Company’s decision makers view a particular risk in the consumption of Steaks n’ Fries’ products as o
sasho [114]

Answer:

The correct option is D, outcome-based ethics.

Explanation:

Duty-based  ethics preaches the idea that one should be seen doing the right thing at all times regardless of the consequences of one's actions, it is unlike the utilitarian approach to ethics where what is wrong or right is a function of having the greatest good for the greatest number of people not minding whether the approach used is wrong or right.

Corporate social responsibility involves the additional efforts put in by corporations in  a bid to give back to society.

Religious ethical principles is about concluding on right or wrong using the lenses of religion.

Outcome-based ethics is a sharp contrast to duty-based ethics, as the outcome or consequence is what justifies the moral right or wrong. in other words the end justifies the means.

8 0
3 years ago
in forward and futures contracts, the risk of non-fulfilment of contract terms is most likely borne by:
topjm [15]

In forward and futures contracts, the risk of non-fulfillment of contract terms is most likely borne by <u>both parties</u><u> to the contract</u>.

<h3>What are forward and futures contracts?</h3>

The difference between a forward and futures contract lies in their establishment.

A forward contract is a personal arrangement traded over the counter whereas, a futures contract is a standardized contract made through an established exchange.

Thus, in forward and futures contracts, the risk of non-fulfillment of contract terms is most likely borne by <u>both parties</u><u> to the contract</u>.

Learn more about forward and futures contacts at brainly.com/question/15581105

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7 0
2 years ago
The news division of WEXS Channel 10 wanted to hire a new morning news anchor. As part of the interview process, candidates were
jolli1 [7]

Answer:B

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5 0
3 years ago
You want your portfolio beta to be 0.90. Currently, your portfolio consists of $4,000 invested in stock A with a beta of 1.47 an
Tatiana [17]

Answer:

31.47%

Explanation:

Total investment = 4000 + 3000 +9000 = $16,000

% of investment in A = 4000/16000 = 25%

% of investment in B = 3000/16000 = 18.75%

% of investment in Asset beta and risk-free asset = 100% - 25% -18.75% = 56.25%

Let the % of investment in asset with beta of 1.74 is A, % of investment in risk free asset is B.

We have the following simultaneous equations:

0.9 = (0.25 x 1.47) + (0.1875 x 0.54) + (A x 1.74) + (B x 0)

A+B = 56.25%

From the first equation, we get A = 24.78%

--> B = 56.25% - 24.78% = 31.47%

*** Note: Portfolio beta is the weighted sum of individual asset betas, according to the proportions of the investments in the portfolio

*** Note: Beta of risk free asset is 0

6 0
3 years ago
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