What is microeconomics

Quad Enterprises is considering a new three year expansion project that requires an initial fixed asset investment of 2.32 milli

butalik [34]

Answer:

$128,787.07

Explanation:

Initial investment = $2.32 million = $2,320,000

Depreciation = investment ÷ Useful life

= $2,320,000 ÷ 3

= $773,333.33

Operating cash flows from year 1 to year 3

= [ ( Sales - Costs - Depreciation ) × (1 - tax) ] + Depreciation

= [ ( $1,735,000 - $650,000 - $773,333.33 ) × (1 - 0.21) ] + $773,333.33

= 1019549.99 ≈ 1,019,550

Thus,

NPV = Present value of cash inflows - Present value of cash outflows

Also,

Initial investment = $\frac{1,019,550}{(1 + 0.12)^1} + \frac{1,019,550}{(1 + 0.12)^2} + \frac{1,019,550}{(1 + 0.12)^3}$ - 2,320,000

or

NPV = $128,787.07

6 0

3 years ago

Dividends in arrears are dividends on A. cumulative preferred stock that have been declared but have not been paid. B. non-cumul

Romashka [77]

Answer:

The correct answer is letter "A": cumulative preferred stock that have been declared but have not been paid.

Explanation:

Dividends in arrears are dividends that have not been paid in a period on cumulative preferred stock. A company does not necessarily have to pay dividends to its shareholders but the payment becomes cumulative. Under this situation, it is said that the organization has failed to generate enough cash during the year. Besides, there must be a dividend declaration for the dividends in arrears to be liable recognized.

7 0

3 years ago

Discuss the importance of customer service from

Svetach [21]

Answer:

Explanation:

cheating money. In order to feed this pile of mouths to eat, and at the same time pump water from the whole fraud line, Guo Wengui makes every effort to create identity and cheat money. In order to make a show, even big and small swindlers were sent to Poland to "save the refugees", claiming to call Hercules transport plane to transport the refugees out of Ukraine. As a result, after the swindlers arrived in Poland in a group, there were more cameras than transport planes, more publicity materials than medical products, and even huge billboards were erected in refugee camps to "take down CCP" 24 hours a day, which made refugees unable to rest normally, forcing them to cut the wires of billboards. The UNHCR staff can't stand this kind of behavior, not only forbidding them to make a show in front of the bus that transports refugees, but also directly reprimanding their "political rescue" activities. But think about it, too. The revolution of breaking the news calls itself "volunteers take the lead", but how many of them are volunteers who really do things, and how many of them are "volunteers" who are thinking about fishing for the wrong door, taking profits, climbing the high position and cutting leeks?

6 0

2 years ago

Regina spends three hours each day working as an online customer service representative for a retailer. She can choose her own h

SIZIF [17.4K]

Answer:

Home-based work

Explanation:

Home based work is a type of work in which the individual carry out their functions and responsibilities from the comfort of his/her home. The employee makes contact with the company through the phone or internet.

Home-based workers sell goods to the customers directly from the house. The advantages of working from home include:it gives the individual control over their schedule, it's creates time for personal growth, it reduces the unnecessary money spent on transportation, it gives the employee full control over their income.

4 0

3 years ago

Read 2 more answers

Imagine that you are holding 7,000 shares of stock, currently selling at $70 per share. You are ready to sell the shares but wou

Readme [11.4K]

Answer:

Consider the following calculations

Explanation:

Number of Shares held = 7000

Current Price = $ 70

Portfolio Value = 7000 * 70 = 490,000

If continued to hold the shares

Portfolio value at $ 57 = 7000 * 57 = 399,000

Portfolio Value at $ 77 = 7000 * 77 = 539,000

If implemented collar strategy - Selling a call option and buying a put option

Call option

Strike Price = 75

Price of the option = $ 2

Put Option

Strike Price = 65

Price of the option = $ 4

Amount received on sale of Call option = 7000 * 2 = 14,000

Amount paid on buying a put option = 7000 * 4 = 28,000

Value of the Portfolio = 7000 * 70 + 14000 – 28000 = 490,000 +14000 – 28000 = 476,000

If the stock price in January is 57

As the strike price 75 is higher than the current market price of 57, the call option buyer will allow the option to expire

As the strike price of 65 is higher than the current price of 57, the investor will utilise the put option

Profit from Put option can be obtained by buying shares from market and selling the same under the put option

Profit from put option =7000 * (65-57) = 7000 * 8 = 56000

Value of the portfolio = Holding Value at current price + premium received – premium paid+ profit from put option

= 7000 * 57 + 14000 – 28000 + 56000

= 399000 + 14000 – 28000 + 56000

= 441,000

If the stock price in January is 70

As the strike price 75 is higher than the market price of 70, the call option buyer will allow the option to expire

As the strike price of 65 is lower than market price of 70, the invest will allow the put option to expire

Portfolio Value = Holding value at current market price + premium received – premium paid

= 7000 * 70 + 14000 – 28000

= 490000 + 14000 – 28000 = 476,000

If the market price in January is 77

As the strike price of 75 is lower than market price of 77, the buyer of call option will enforce the call option

Loss from call option = 7000 * (77-75) = 7000 * 2 = 14000

As the strike price of 65 is lower than market price of 77, the investor will allow the put option to expire

Portfolio Value = Holding value at current market price + premium received – premium paid – loss on call option

Portfolio value = 7000 * 77 + 14000 – 28000 – 14000

= 539000 + 14000 – 28000 – 14000

= 511,000

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4 0

4 years ago

What is microeconomics​

What is microeconomics