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1 year ago

McCann Co. has identified an investment project with the following cash flows.

Business

1 answer:

Shalnov [3]1 year ago

7 0

Answer:

Explanation:

Cash flow is 530 , 690 , 875 and 1090 in 1st to 4 th year respectively

discount rate = 10 %

NPV = 530/ 1.10 + 690 / (1.10)² + 875/(1.10)³ + 1090/ (1.10)⁴

= (530x1.10³ + 690 x 1.10² + 875x 1.10 + 1090)/ 1.10⁴

= (705.43 x +834.9 +962.5 +1090)1.10⁴

= 3592.83 / 1.10⁴

= 2453.95

Discount rate 18%

NPV = 530/ 1.18 + 690 / (1.18)² + 875/(1.18)³ + 1090/ (1.18)⁴

= (530x1.18³ + 690 x 1.18² + 875x 1.18 + 1090)/ 1.18⁴

= (870.80696 +960.756 +1032.5 +1090)1.18⁴

= 2039.46

Discount rate 24%

NPV = 530/ 1.24 + 690 / (1.24)² + 875/(1.24)³ + 1090/ (1.24)⁴

= (530x1.24³ + 690 x 1.24² + 875x 1.24 + 1090)/ 1.24⁴

1010.51072+ 1060.944+1085+1090 / 1.24⁴

= 1796.14

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Emily, age 58, has been a participant in the Icon, Inc. ESOP for fifteen years. She plans to retire at 65. At the end of this ye

Andrej [43]

Answer:

How much must Icon allow Emily to diversify this year?

The answer is $250,000

Explanation:

After attaining the age of 55 years and participating already for ten years in the ESOP.
Emily will be allowed to diversify the value equal to 25% of investments.
50% of the investment is allowed to be diversified if it is final year of participation but in the present case it is not the final year before the retirement of the Emily so she will not be allowed 50% diversification and only up to 25% is allowed on which the percentage of investment already diversified in previous years will also be reduced.
Since here in the past no amount has been diversified by Emily so she will be allowed 25 % of investment to diversify in the current year which comes to $250,000 ($1,000,000* 25%). Thus the answer is $250,000.

7 0

1 year ago

Assume that a six-firm cartel supplies 500 million units of Whatailsya energy drink at a price of $5.00 per unit. Each firm supp

bazaltina [42]

Answer:

The net gain for the firm cheating the cartel is US$ 183 million (rounding the answer to the nearest million).

Explanation:

1. Let's review all the information provided for solving this case:

Number of firms that supply Whatailsya energy drink = 6

Amount of production of the cartel of six firms = 500 million units

Price of the energy drink = US$ 5

Amount of production of the firm that decided to break the cartel = 50 million extra units

Price after the extra production is sold = US$ 4.50

2. Let's find the individual production of each firm before and after the 50 million extra units and the net gains for the cheating firm.

Individual production of each firm of the cartel = Amount of production of the cartel/Number of firms

Individual production of each firm of the cartel = 500 million units/6

Individual production of each firm of the cartel = 83.33 million units

Individual sales of each firm before the 50 million extra units = Individual production * Price of the energy drink

Individual sales of each firm before the 50 million extra units = 83.333 million * 5

Individual sales revenue of each firm before the 50 million extra units = US$ 416.666 million

New production amount of the firm cheating the cartel = 83.333 + 50

New production amount of the firm cheating the cartel = 133.333 million units

Price of the energy drink after the extra production is sold = US$ 4.50

New sales revenue of the firm cheating the cartel = New production amount * Price of the energy drink after the extra production is sold

New sales revenue of the firm cheating the cartel = 133.333 million * 4.50

New sales revenue of the firm cheating the cartel = US$ 600 million

Net gain of the firm cheating the cartel = New sales revenue of the firm cheating the cartel - Individual sales of each firm before the 50 million extra units

Net gain of the firm cheating the cartel = 600 million - 416.666 million

Net gain of the firm cheating the cartel = 183.333 million

Net gain of the firm cheating the cartel = US$ 183 million (rounding the answer to the nearest million)

6 0

2 years ago

What do you feel would be a minimally acceptable rate of pay? (ex. $X.XX or $XX,XXX):_______.

Veronika [31]

Correct question: I do not know if this question is complete or not but if i understand you well enough, I'd say that the minimally acceptable rate of pay will be in accordance to what is obtainable in yur state or area. $X.XX represents pay per hour while $XX.XXX represents pay per year.

Answer:

I would say Negotiable to be on the safe side if you can't come up with a certain amount by yourself.

Explanation:

When you have to fill on an application and it gets to the rate of pay, you either be on the safer side and write Negotiable if you do not want to sell yourself short or be too pricey. But it is almost certain that the rate of pay applicable in your state or area is what you will be getting per hour.

I hope this helps.

5 0

2 years ago

Several factors can contribute to long-term organizational success. one is the establishment of a core ideology that collins and

andrew11 [14]

Original Source Material

Student Version

Merck, in fact, epitomizes the ideological nature--the pragmatic idealism--of highly visionary companies. Our research showed that a fundamental element in the "ticking clock" of a visionary company is a core ideology--core values and a sense of purpose beyond just making money--that guides and inspires people throughout the organization and remains relatively fixed for long periods of time.

References:

Collins, J. C., & Porras, J. I. (2002). Built to last: Successful habits of visionary companies. New York, NY: Harper Paperbacks.

Several factors can contribute to long-term organizational success. One is the establishment of a core ideology that Collins and Porras (2002) describe as "core values and sense of purpose beyond just making money" (p. 48). Also, the importance of a visionary leader that guides and inspires people throughout the organization and remains relatively fixed for long periods of time is hard to over emphasize.

References:

Collins, J. C., & Porras, J. I. (2002). Built to last: Successful habits of visionary companies. New York, NY: Harper Paperbacks.

Which of the following is true for the Student Version above?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

This is not plagiarism.

Answer: Option 3.

Explanation:

Plagiarism in very simple words is the copying of the content of the document that has been written by some one else in to your own document. During this copying the due acknowledgement is also not given to the document from which it has been taken.

The document that has been talked about in the question above is not an example of plagiarism. The proof for this is the due acknowledgement given to the references from whose document the content has been taken into the document.

8 0

1 year ago

The market interest rate related to a bond is also called the a.stated interest rate b.contract interest rate c.effective intere

never [62]

Answer:

The market interest rate related to a bond is also called the

c.effective interest rate.

Explanation:

Another name for the market interest rate is the current interest rate, the yield-to-maturity, or the effective interest rate. One distinguishing factor is that the market interest rate is always changing whereas the stated interest rate does not change. The stated interest rate is the interest rate actually designated on the face of a bond, which determines the amount of interest that the bondholder receives. This means that the market interest rate is just the rate that investors demand to earn for lending their money to the company.

4 0

2 years ago