Answer:
The answer is: $6,900
Explanation:
To determine how much the insurance company should charge, we must first calculate the amount of money they expect to pay:
- total loss $200,000 x 0.002 = $400
- 50% loss $100,000 x 0.01 = $1,000
- 25% loss $50,000 x 0.1 = $5,000
Total $6,400
If the insurance company expects to pay $6,400 per year, they will have to charge $6,900 ($6,400 + $500) to cover their expenses and earn a $500 profit.
Answer:
Explanation:
A) using 2-year moving average :
Year 6 : (3800 + 3700) = 7500 / 2 = 3750
2) Mean absolute deviation based on the forecast above :
(3000 + 4000) = 7000/2 = 3500
(4000 + 3400) = 7400/2 = 3700
(3400 + 3800) = 7200/2 = 3600
3000
4000
3400 __3500__100
3800__3700__100
3700__3600__100
Mean absolute deviation = (100 + 100 + 100) /3 = 300/3 = 100
C) weight of 0.4 and 0.6
(0.4*3000 + 0.6*4000) = 3600
(0.4*4000 + 0.6*3400) = 3640
(0.4*3400 + 0.6*3800) = 3640
3000
4000
3400 __3600__200
3800__3640__160
3700__3640__60
(200 + 160 + 60) = 420 / 3 = 140
Answer:
D
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Flying Car
Cash flow in year 0 = -$200,000
Cash flow in year 1 = 50,000
Cash flow in year 2 = 50,000
Cash flow in year 3 =80,000
Cash flow in year 4 =100,000
IRR = 13%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Answer:
Senior Manager.
Explanation:
The Senior manager has a substantial role in the company as they formulate objectives and policies of the organization. Manager's intuition, experience, instincts, and personal experience is needed to approach specific problems in a rational, logical and systematic way.
Senior managers have a responsibility towards the company ensuring that targets can be met and the company stays profitable. That is why they need to have a wide variety of skills to perform their jobs successfully.
Answer: $8,391.90
Explanation:
So the company borrowed $40,000 from a bank.
They are to pay 7% interest on the note per year for 6 years.
We are to find the annual payments.
7% represents a constant payment schedule per year so we can use an Annuity formula.
Seeing as the Annuity factor has been calculated for us already we don't need to formula though.
The present value of an annuity factor for 6 years at 7% is 4.7665.
Calculating the present value of the annual payment can be done as follows,
= Amount / PVIFA (Present Value Interest Factor for an Annuity)
= 40,000/4.7665
= 8391.90181475
= $8,391.90
The annual payments equal $8,391.90.
