Correct option: Long term loan
In finance, short term refers to a period less than one year or 365 days while long term is a period greater than one year or 365 days. Here the borrower is borrowing $5000 for a period of four years which is greater than 365 days. This is why it is a long-term loan. In the personal balance sheet, this loan should be reflected under long term liabilities.
Answer:
Diversification
Explanation:
When constructing a risky portfolio consisting only of risky assets, an investment manager should offer _Diversification____. the same risky portfolio to all clients a customized risky portfolio to each client based on their required return a customized risky portfolio to each client based on their risk aversion a customized risky portfolio to each client based on their ability to cope with losses
Answer: <em> = =0.4114
</em>
Explanation:
Given that ;
p=0.20
n = 20
Therefore we can compute the probability as;
where,
P[X=0] = 0.0115
P[X=1] = 0.0576
P[X=2] = 0.1369
P[X=3] = 0.2054
Therefore;
=0.0115+0.0576 +0.1369 + 0.2054
=0.4114
Answer:
$33,540,000
Explanation:
initial investment:
- opportunity cost of land (resale price of land) = $10,700,000
- building cost of the facilities = $21,900,000
- other expenses related to the site (grading) = $940,000
- total $33,540,000
The purchase cost of the land is considered a sunk costs, since it is not relevant now. What is relevant is the price at which the land could be sold at the moment of starting the project.
Answer:
Margin of Safety = $124,038
Explanation:
Given:
Total Sale = $825,000
Sales price = $275 per unit
Variable cost per unit = $135
Fixed costs total = $356,860
Find:
Margin of Safety
Computation:
BEP Sale = FC / [(Sales per unit - VC) / Sales per unit]
BEP Sale = $700,962
Margin of Safety = Total Sale - BEP Sale
Margin of Safety = $825,000 - $700,962
Margin of Safety = $124,038