I think it is Carry a risk of losing money (A)
Answer:
C. Satisficing model
Explanation:
Satisficing model aims at reaching and receiving the results which makes the desired person satisfied with the results.
It basically provides the company and its management to not only find an optimal solution but a solution which is satisfying for the management.
Thus, in the given instance management sets a prescribed percentage as results they desire for sales, and related profit which further results in desired level of growth.
Thus, this is about satisfactory results that is Satisficing model.
Answer:
The correct answer is b) The first tranche has the highest prepayment risk.
Explanation:
A collateralized mortgage obligation (CMO) is a type of security backed by mortgage. It is comprised of a pool of mortgages that are bundled together and sold as an investment. Prepayment risk is the risk of loss of interest income due to early repayment of the principal by the borrower.
In the given situation, there are three tranches. The first tranche has the highest prepayment risk because it is receiving principal at the earliest. Hence, there is more of a chance of this principal being returned early and the CMO holder losing out on potential interest. Therefore, the prepayment risk of the first tranche is the highest among all three tranches.
Answer:
The total appraisal cost that would appear on the quality cost report is $63,300.
Explanation:
Appraisal costs can be described as costs that are incurred by a company in order to detect some of its products that have defects before they delivered to customers.
Examples of appraisal cost include costs incurred to inspect work-in-process materials, costs incurred to inspect finished goods, supplies used to conduct inspections, and among others.
Based on the above explanation, the total appraisal cost that would appear on the quality cost report can be calculated as follows:
Total appraisal cost = Test and inspection of in-process goods + Final product testing and inspection = $19,500 + $43,800 = $63,300
Therefore, the total appraisal cost that would appear on the quality cost report is $63,300.
Answer:
a. $141,086,622.46.
Explanation:
Calculation for how much must it deposit today
Using this formula
Present Value = Future Value / [ ( 1 + r) n]
Where,
Future Value = 440,000,000
r = rate of Interest= 4%
n = Number of years = 29
Let plug in the formula
Present Value = 440,000,000 / [ ( 1 + 0.04)29]
Present Value= 440,000,000 / 3.1186514519
Present Value= $141,086,622.46
Therefore the amount it must deposit today to fund this liability will be $141,086,622.46
