Answer:
Option C is correct one.
<u>The investment strategy is conservative.
</u>
Explanation:
This is so because most of the money is either in cash or certificates of deposits. Portfolio also consists 40% of bonds with 6% interest rate and 40% equities are also only of the employer's stock. The rate of appreciation and dividend is also very low on this stock. Hence due to all these factors we can say the strategy is conservative.
Answer: Option A
Explanation: Capital budgeting is the process by which an analyst using different tools such as discounted cash flow, future cash flow and payback period tries to evaluate the prospective long term investments of an organisation.
Accrual accounting method is an accounting convention and not a capital budgeting tool. It states that every transaction of the entity must be recorded on accrual basis.
Thus from the above we can conclude that the correct option is A.
Answer:
730 items
Explanation:
The objective of the given information is to determine the number of hamburgers UAHH should order for the following conditions:
Average daily demand 600
Standard deviation of demand 100
Desired service probability 99%
Hamburger inventory 800
The formula for a given order quantity in a fixed period of time can be expressed as :

where;
= order quantity = ???
= daily demand average = 600
L = lead time in days = 1
T = time taken = 1
z = no of standard deviation = ???
= standard deviation of usage in lead time and time taken = ???
I = present inventory level = 800
=
× standard deviation of daily demand
= 
= 1.4142 * 100
= 141.42 items
From the Desired service probability 99% = 0.99; we can deduce the no of standard deviation by using the excel function (=NORMSINV (0.99))
z = 2.33
From 



q = 729.5086 items
q ≅ 730 items
Therefore; the number of hamburgers UAHH should order from the following given conditions = 730 items
Answer:
-11.8%
Explanation:
the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:

so in this particular case that one year later there are 29 years to maturity so we have:


so as we have a higher rate the investment has the next return:

