Answer:
Discounted amount luxury hotel suite = $56.25
Explanation:
Given:
Discount rate on luxury hotel suite = 15%
Cost of luxury hotel suite = $375 per night
Find:
Discounted amount luxury hotel suite
Computation:
Discounted amount luxury hotel suite = Discount rate on luxury hotel suite x Cost of luxury hotel suite
Discounted amount luxury hotel suite = 375 x 15%
Discounted amount luxury hotel suite = 375 x 0.15
Discounted amount luxury hotel suite = $56.25
Answer:
Portfolio beta = 0.904
Explanation:
<em>The portfolio beta is the weighted average of all the beta associated with each of the different stock making up the portfolio. The betas are weighted using the probability associated with each of the stock. </em>
Portfolio beta = WaRa + Wb+Rb + Wn+Rn
W- weight of the beta, R- Stock beta -
W- Probability of the beta, R- stock beta
Note that the sum of the probability of different outcomes should equal to one. Hence, the probability of economy being normal is
Portfolio beta = (0.4 × 1.24) + (0.15 × 1.49) + ( 0.45 ×0.41) =0.904
Portfolio beta = 0.904
Answer:
vast
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Hope this helps
Answer:
B. $2,190
Explanation:
Calculation for the net present value of the proposal
Using this formula
Net present value=(Annual cash flow×Discounted present value)- Machine purchase amount
Let plug in the formula
Net present value=($14,000 ×5.335)-$72,500
Net present value=$74,690-$72,500
Net present value= $2,190
Therefore the Net present value will be $2,190