Answer:
Alima will pay 40 dollars in management of her fund.
Explanation:
A basis point is equivalent of 1/100th of 1%
an expense ratio of 8 baiss point will be equivalent to 0.08%
0.08/100 = 0.0008
The managenement will get this as expense ratio while invesotr will see their investment yield decreases for this amount.
On a yearly basis Alima will pay $50,000 x 0.0008 = 40 dollars
Answer:
Which shop will benefit the most from its expansion?
- B. Donny, because his workers currently have less available capital to work with
The law of marginal returns applies here, that is why Sunshine donuts didn't produce twice as many by using more machines
How much should Donny realistically expect his production to increase with the new equipment?
Similar to the additional production that Sunshine had in the past.
How much should Sunshine realistically expect her production to increase with the new equipment?
Maybe even a little more than 50 dozen, but definitely less than 80 or 100.
Answer:
a. project A; because its NPV is about $335 more than the NPV of project B.
Explanation:
As in the question it is mentioned that the required rate of return for project A and project B is 11.25% and 10.75% respectively.
Here we have to determined the net present value for both projects having different required rate of return
So based on the net present value the first option is correct as the project A is more than the project B
Therefore the first option should be accepted
Answer:
$71,520
Explanation:
we must first determine the monthly payment:
monthly payment = present value / annuity factor
- present value = $608,000
- PV annuity factor, 0.675%, 300 periods = 128.46
monthly payment = $608,000 / 128.46 = $4,732.99
Then I prepared an amortization schedule using an excel spreadsheet. After the 18th payment, the principal balance is $596,005.
The investor will have $667,525 - $596,005 = $71,520
Yes, how many peoples luggage they can manage to loose and still be in buisness
