Answer:
1. 3 years
2. 3.375 years
3. The storage facility project
Explanation:
The payback period measures how long it takes for the amount invested in a project to be recouped from cummulative cash flows.
When there are more than 1 project to be chosen from, the project whose payback period is the least should be chosen.
Therefore, the storage facility project should be chosen.
Explanations on how the payback period is calculated can be found in the attached images. Please contact me if you need clarification.
I hope my answer helps you.
Answer:
The compensation to the fund manager is based on the performance of the pension fund. If the fund performs well and earns significant profit, then the compensation to the mangers should increase.
If it incurs losses, then the argument for capping the compensation of funds managers will gain ground. Note that the manager is being paid according to the pay-for-performance scheme. Thus it is unjustified that his compensation is reduced when there is no significant evidence that his performance was responsible for the poor performance of the fund. The manager has earned over $1.2 million last year. Hence fixing the compensation of managers to $100,000 should be considered only when the fund has under performed drastically. Without such evidence, such capping will only demoralize them and the profitability of the company will fall.
Explanation:
Answer:
YTM = 2.84%
Explanation:
We know,
YTM = 
Here,
I = Coupon payment = It is calculated by multiplying the coupon interest rate by the par value of the bond.
M = Bond's par value.
Vo = Bond's current market price.
n = Number of years or periods.
Given,
n = 18
I = Semiannual coupon bonds rate = $1,000*7%*(1/2) = $70 ÷ 2 = $35
M = Par value of a bond = $1,000
Vo = Market value of the bond = $1,102.50
Therefore,
YTM = 
or, YTM = 
or, YTM = $29.32 ÷ $1,034.08
or, YTM = 0.0284
Therefore, YTM = 2.84%
All of the following represent cash outflows except E; Depreciation.
Further Explanation:
Cash outflows to a firm/business is how much cash for the business is available after taxes and capital are paid for. Interest payments, dividends and the purchase of equipment for the plant is considered into the cash flows.
Depreciation will not be part of the cash flow. This is considered to be a non-cash expense to the business/firm. This is an ongoing charge to the fixed assets of the business. This actually reduces the cash flow by reducing the monies paid for income taxes.
Learn more about depreciation at brainly.com/question/9862781
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Answer:
"Pursuit of monopoly power" is the correct solution,
Explanation:
- Through a party, the shareholders of such a monopoly have had the authority to adjust rates, eliminate rivals, thereby dominate the competition within the specific geographical region.
- Antitrust laws in the United States discourage monopolies and whatever other practices which unduly restrict competitor's commerce. The form of trade restriction shown by this illustration is the acquisition of monopoly control.
Therefore the answer to the above was its right one.
