True or false the risk premium is primarily concerned with business risk, financial risk, and inflation risk.

kobusy [5.1K]

The answer is D because if u were in a flood it would mess up ur car

5 0

2 years ago

Three mutually exclusive design alternatives are being considered. The estimated sales and cost data for A B C Investment cost $

forsale [732]

Answer:

Alternative B has a higher annual worth

Explanation:

project A B C

initial outlay $30,000 $60,000 $50,000

units sold 15,000 20,000 18,000

selling price $3.50 $4.40 $4.10

var. costs $1 $1.40 $1.15

fixed expenses $15,000 $30,000 $26,000

salvage value $0 $20,000 $15,000

useful life 10 years 10 years 10 years

contribution $2.50 $3 $2.95

margin per unit

NCF 1 - 9 $22,500 $30,000 $27,100

NCF 10 $22,500 $50,000 $42,100

annual worth A = [-$30,000 x .2385 (A/P, 20%, 10 years)] + $22,500 = $15,345

annual worth B = [-$60,000 x .2385 (A/P, 20%, 10 years)] + $30,000 + [$20,000 x .0385 (A/F, 20%, 10 years) = $16,460

annual worth C = [-$50,000 x .2385 (A/P, 20%, 10 years)] + $26,000 + [$15,000 x .0385 (A/F, 20%, 10 years) = $14,652.50

6 0

2 years ago

Jeff starts writing a report for one of his classes. since the report is similar to a previous one he has written, he opens the

Nata [24]

The aspect of his resource that has been compromised is the availability. It is because he changed his report because he has a similarity to one of the reporters, he decided to changed it, making the first report unavailable as it is changed and replaced. Because of it, availability has been compromised as he changed his first report that could still have been used.

8 0

2 years ago

Relevant financial information for Gordon, Inc. andJordan, Inc. for the current year is provided below. ($ in millions) Net sale

Yakvenalex [24]

Answer:

C) Return on Assets is 7.8% for Gordon and 6.2% for Jordan. Thus, Gordon is more profitable than Jordan

Explanation:

please find attached a clear image of the table used in answering this question

Return on assets = net income / average total assets

average total assets = (beginning assets + ending asset) / 2

for gordon

average total assets = (1420 + 1600) / 2 = 1510

ROA = 118 / 1510 = 0.078146 = 7.8%

For Jordan,

average total assets = (2,230 + 2,020) / 2 = 2125

ROA = 132 / 2125 = 0.062118 = 6.2118%

The ROA figure shows how well a company converts assets into net income. The higher the ROA number, the better as it means the firm earns more money on less investment

3 0

2 years ago

A project will not produce any cash flows for two years. Starting in the third year, it will produce annual cash flows of $11,90

dusya [7]

Answer:

The NPV of the project at 8.7 percent will be 4,802.58‬

Explanation:

We will calcualte the present value of the cash inflow:

$\frac{Inflow}{(1 + rate)^{time} } = PV$

year 3:

Inflow 11,900.00

time 3.00

rate 0.087

$\frac{11900}{(1 + 0.087)^{3} } = PV$

PV 9,265.28

Year 4:

Inflow 11,900.00

time 4.00

rate 0.087

$\frac{11900}{(1 + 0.087)^{4} } = PV$

PV 8,523.71

Year 6:

Inflow 50,500.00

time 6.00

rate 0.087

$\frac{50500}{(1 + 0.087)^{6} } = PV$

PV 30,613.58

Then, we will add them together and subtract the investment amount

NPV: 30,613.59 + 8,523.71 + 9,265.28 - 43,600 = 4,802.58‬

3 0

2 years ago