A listing of all possible returns on an investment, with a chance of occurrence assigned to each return is known as ____

Assume you have two projects with different lives. Project A is expected to generate present value cash flows of $5.2 million an

Alex787 [66]

Answer:

$1,033,190.69 ; better

Explanation:

Given:

Present value of cash flow of Project A (PV) = $5,200,000

Maturity (nper) = 7 years

Required return (rate) = 9%

Annual annuity (pmt) can be computed using spreadsheet function =pmt(rate,nper,PV,FV). Substituting the values, we get,

=pmt(0.09, 7, -5200000)

=$1,033,190.69

FV is 0. Present value is negative as it's cash outflow.

Annual annuity of Project A is $1,033,190.69

Project B:

Given:

Present value of cash flow of Project A (PV) = $3,800,000

Maturity (nper) = 5 years

Required return (rate) = 9%

Annual annuity (pmt) can be computed using spreadsheet function =pmt(rate,nper,PV,FV). Substituting the values, we get,

=pmt(0.09, 5, -3800000)

=$976,951.34

FV is 0. Present value is negative as it's cash outflow.

Annual annuity of Project B is $976,951.34

Annual annuity of Project is more than that of Project B, So Project A is better than Project B.

8 0

3 years ago

What are the fundamental differences between mutual funds and hedge funds?

Nady [450]

The correct answers are:

<span>A.)mutual funds are more strictly regulated than hedge funds
</span><span>D.)mutual funds collect money from investors while hedge funds from companies

Mutual funds are investment programs that are funded by shareholders while hedge funds are invested funds from borrowed money. In terms of an investment program, mutual funds are more effective.</span>

6 0

3 years ago

Read 2 more answers

The following is the Bravo Unlimited adjusted Trial Balance.

ivanzaharov [21]

Explanation:

The preparation of the Assets section is shown below:-

Alpha Dog Company

Adjusted Trial Balance

December 31, 2016

Particulars Assets

Cash $88,450

Accounts Receivable $150,000

Supplies $29,255

Total current assets $179,255

Fixed Assets

Equipment $295,285

Accumulated Depreciation -$238,760 $56,525

Stock Investment $172,000

Total Fixed assets $228,525

Total Assets $407,780

Total Assets = Total current assets + Total fixed assets

7 0

3 years ago

Which of the following is an incorrect way to avoid struck-by rolling hazards?

finlep [7]

The answer is: A.Position a worker to signal you when operating a vehicle in reverse gear without audible forward alarm

When operating vehicle in reverse gear, the operator cannot always see whether the worker who gives the signal able to see the moving vehicles or not.

Which is why an audible sound for moving vehicles is needed so the other workers could notify the location of your vehicles and avoid themselves from being crushed.

3 0

3 years ago

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A homebuilder negotiates a deal with a farmer to give the farmer a percentage of the profit on homes the homebuilder builds and

Tcecarenko [31]

Answer:

C. Yes, because the farmer is making a percentage of the profit

Explanation:

If the farmer is being used as sales man and is making a 50% profit on the home he sells, then this means he is an employee and to do his job the right way he needs to have a real estate licence for that.

Hope this Helps.

Goodluck.

4 0

3 years ago

Read 2 more answers

A listing of all possible returns on an investment, with a chance of occurrence assigned to each return is known as _____.