Answer: $2.1 million
Explanation:
It is mentioned the project is independent of the outcome of general market which means that
=> beta = 0
Using the CAPM formula which is,
r=rt + B* (rm -rf)
=> r = 3% + 0*(12%-3%) = 3%
Expected value of Project in one year = $1 billions * 0.1
Expected value of Project in one year = $100 millions
NPV = Expected value of Project in one year/ (1 + 0.03) - Initial cost
NPV = 100/ (1 + 0.03) - 95
NPV = 97.1 - 95
NPV = $2.1 million
Answer:
The answer is: I would do a cost benefit analysis to try to determine which option is the best.
Explanation:
In a cost-benefit analysis you examine the pros and cons of taking an action. You estimate all the costs involved in taking that action and all the possible benefits (or profits) that you will receive by taking that action.
A company will usually perform cost benefit analysis to try to decide which investments to make. For instance, I have $1 million to invest in different projects, my cost benefit analysis should tell me in which projects I should invest that return the largest profit.
If you are trying to decide how can you lose weight more efficiently, you would first estimate the costs of each activity. How much time you are going to spend? How much you have to pay or are they free?
Then you also estimate what benefits you might get form doing each activity. How much weight can I lose by doing each one? Can I save money by doing them? Will I enjoy doing it?
After you have estimated all possible outcomes, you will be able to decide which, if any, activity or activities you should do to lose some weight.
Answer:
c. interest rates on bonds of different maturities move together over time.
Explanation:
"When riding the yield curve, an investor will purchase bonds with maturities longer than the investment horizon and sell them at the end of the investment horizon. This strategy is used in order to profit from the normal upward slope in the yield curve caused by liquidity preferences and from the greater price fluctuations that occur at longer maturities."
Reference: Chen, James. “Riding the Yield Curve.” Investopedia, Investopedia, 25 July 2019
It would be letter C - <span>To state the reason for the existence of a business.
</span>A mission statement<span> of a company defines what an organization is, why it exists, its reason for being. It is a sentence that states the company's function and the business's goals and philosophies. </span>
