Answer:
Operating cash flows
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV is a capital budgeting method used to determine profitable investments
<h2>"Innovative" traits best describes Carol</h2>
Explanation:
Based on the given statement, Carol Bates is very much interested in grabbing the latest gadgets. It means that,
- Carol is updated
- Adaptable to change
- Have exploring capability to upgrade
- A technology savvy
- Monitors market and has good knowledge on current trends
- Self-motivated to be on track
- Has creative skills to use the latest gadgets
All the above qualities describes that Carol Bates is innovative.
Answer: Machine B
Explanation:
Average rate of return = Average Income / Average Investment
Machine A
= 47,932.64/342,376
= 14%
Machine B
= 85,282.20/284,274
= 30%
Machine C
= 68,037/453,580
= 15%
<em>Machine B has best average rate of return. </em>
Answer:
A) Lend PV of $100 and buy two calls.
Explanation:
For the option expiration date, it is mentioned that the stock price could be either $100 or $200 so it would be the final payoff either in $100 or $200
Now the lending of the present value i.e. $100 would be compulsory
So, the two calls values would be
= ($200 - $150) × 2
= 100
Total value be
= $100 + $100
= $200
Therefore the first option is correct
And all the other options are wrong
