A local couple is deciding to invest their lifetime savings of $68,000.00 into a Fijian business. They are considering two businesses. Business A, in the food and beverage (FNB) industry, provides an annual cash income of about $8,000 for 10 years. Business B, in the clothing and textiles industry, provides an annual cash income of $7,500 for 11 years commensurate with their level of investment. If the couple on the other hand decide to leave their lifetime savings into a fixed deposit at their current bank, which is a large international bank, they would get about 1.5 percent per annum. The economy is currently in the expansionary phase of the business cycle. However, it is forecasted that a severe global downturn is expected in 1 years’ time and the resulting recession will last about 1 year thereafter. During the recession, it is expected that cash flows in the FNB industry will fall by 40 percent per annum. In the clothing and textiles industry, it is expected that cash flows will fall by about 35 percent per annum. The general elections are expected to be held in 4 years’ time. Policy changes around taxation could be expected but at present are uncertain.
Required:
i. Calculate the present value of the cash inflows of both alternatives and compare it against the investment required. Clearly show which investment is preferred

ii. Identify and discuss the key risks faced by the couple in each scenario

iii. Against the type of risks involved, please discuss which investment would you choose

Answers

Answer 1

The best investment option for this couple is the Food and Beverage industry because it is the one that gives them the highest profits within 11 years compared to the other alternatives.

How to calculate the profit of the couple in each investment alternative?

To calculate the pair's gain in each alternative we must perform the following mathematical operations:

Food and beverage (FNB) industry

$8,000 × 10 years = $80,000

$8,000 ÷ 100 = $80$80 × 40% = $3,200

$80,000 - $3,200 = $76,800

$76,800 + $8,000 = $84,800

Clothing and textiles industry

$7,500 × 11 years = $82,500

$7,500 ÷ 100 = $75$75 × 35% = $2,625

$82,500 - $2,625 = $79,875

Current Bank

$68,000 ÷ 100 = $680$680 × 1.5% = $1,020

$1,020 × 11 = $11,200

$68,000 + $11,200 = $79,220

Based on the foregoing, it can be inferred that the best investment option for the couple is the Food and Beverage (FNB) industry because it is the one that leaves the highest profits despite the decrease in profits during the second year.

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Related Questions

Help pretty please?.?.?? Prize is 20 points :)

Answers

Answer:

7

Step-by-step explanation:

Because 2x-4 equals -8

Baseballs are sold 8 to a box. The
league is planning on having 18
games. If they need 3 balls for
each game, how many boxes will
they have to buy?

Answers

You need to multiply 18*3 to get the number of balls needed. Then you have to divide the answer with 8 to get the amount of boxes needed.
18x3= 24
24x8= this will give you your answer

- 16 + ( - 12 ) - ( - 40 )

Answers

Answer:

12

Step-by-step explanation:

Its 12 because when you do -16 + - 40.... then -12 you get =12 There you go

Step-by-step explanation:

Solution ,

Firstly we need to understand that

( - ) × ( - ) = ( + )

( + ) × ( + ) = ( - )

( - ) × ( + ) = ( - )

( + ) × ( - ) = ( - )

Question:

- 16 + ( - 12 ) - ( - 40 )

here ( + ) × ( - ) = ( - )

= - 16 - 12 - ( - 40 )

here ( - ) × ( - ) = ( + )

= - 28 + 40

here the ( + ) has greater variable so....

= + 12

hence 12 is the answer....

Urgent help,

Translate the following words into equations step 2 solve the equation.

8 more than a number is equal to 15

The product of 7 and a number is 35

Answers

Answer:

x+8=15

-8. -8

x=7

7x=35

7. 7

x=5

what is the volume of a cylinder, in cubic feet, with a height of 8 feet and a base diameter of 18 Round to the nearest place​

Answers

it would be 3.14(pie) x 9^2 (radius) x 8 (height) and that would = 2034.72 and rounded 2034.7

1.4
Arrange the number of voters in 2016 - election
per province in ascending order.
5
Calculate the percentage of votes in the 2016-election that went
to "Other" in the National Results, if the total number of voters was
26 660 276.

Answers

Answer:

that would be 57

Step-by-step explanation:

because im smart

A rectangular prism with a length of 3.8 meters and a width of 1.5 meters has a volume of 16.53 cubic meters.

What is the height of the prism?


2.9 m

6.525 m

11.23 m

21.83 m

Answers

16.53/3.8x1.5
Answer. 2.9

PLEASE ANSWER

Given JAM and segment PB such that PB JM, what is the missing justification in the proof that JP/PA = MB/BA

Answers

Since ∠A ≈ ∠A and ∠AJM ≈ ∠APB, hence triangle APB is similar to triangle AJM based on AA (angle-angle) similarity postulate.

What are similar triangles?

Two triangles are said to be similar if they have the same shape and the ratio of their corresponding sides are in the same proportion.

Since ∠A ≈ ∠A and ∠AJM ≈ ∠APB, hence triangle APB is similar to triangle AJM based on AA (angle-angle) similarity postulate.

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Stephan has a piece of wood that measures 18 inches long and 12 inches wide. He wants to make a tray with sides 2 inches high. Maurice says that he can make a tray that has a base measuring 1012 inches by 1012 inches. Is he correct? Use the drop-down menus to explain your answer.

Stephan
Choose...
have enough wood to make the tray because he has
Choose...
square inches, which is
Choose...
than he needs to make the tray,
Choose...
square inches.

Answers

Answer:

i. No, Maurice statement is wrong

ii. Stephan does not have sufficient pieces of wood to make the tray because the square inches required is more than what he has.

Step-by-step explanation:

Stephan's piece of wood measures; 18 inches in length and 12 inches in width. Since the piece of wood has a shape of a rectangle,the area of the piece of wood = length × width                                                 = 18 × 12                                                = 216 square inchesAccording to Maurice's statement, he could make a tray that has a base of 1012 inches by 1012 inches. The base has the shape of a square, so that;     the area of the base = length × width =                                        = 1012 ×1012                                      = 1024144 squared inchesThis shows that Stephan does not have sufficient wood to make the tray because the square inches required is more than what he has.

* Given the following expressions:

I.
[tex] - \frac{5 }{8} + \frac{3}{5} [/tex]
||.
[tex] \frac{1}{2} + \sqrt{2} [/tex]
|||.
[tex]( \sqrt{5} ) \times ( \sqrt{5} )[/tex]
IV.
[tex]3 \times ( \sqrt{49} )[/tex]

Answers

Answer:

sorrry i forget you man ..... or bro .....

The system has ___________ solution(s). y = 2x + 6 4y = 8x + 24

Answers

Answer:

Step-by-step explanation:

4(2x + 6) = 8x + 24

8x + 24 = 8x + 24

infinite many solutions

You wish to test the following claim (
H
a
) at a significance level of
α
=
0.002
.


H
o
:
μ
=
57.7


H
a
:
μ

57.7


You believe the population is normally distributed, but you do not know the standard deviation. You obtain a sample of size
n
=
286
with mean
M
=
59.6
and a standard deviation of
S
D
=
7.7
.

What is the test statistic for this sample? (Report answer accurate to three decimal places.)
test statistic =


What is the p-value for this sample? (Report answer accurate to four decimal places.)
p-value =

Answers

Using the t-distribution, it is found that the desired measures are given as follows:

The test statistic is t = 4.17.The p-value is of 0.0004.

What are the hypotheses tested?

At the null hypotheses, it is tested if the mean is of 57.7, that is:

[tex]H_0: \mu = 57.7[/tex]

At the alternative hypotheses, it is tested if the mean is different of 57.7, that is:

[tex]H_a: \mu \neq 57.7[/tex]

What is the test statistic?

The test statistic is given by:

[tex]t = \frac{\overline{x} - \mu}{\frac{s}{\sqrt{n}}}[/tex]

The parameters are:

[tex]\overline{x}[/tex] is the sample mean.[tex]\mu[/tex] is the value tested at the null hypothesis.s is the standard deviation of the sample.n is the sample size.

The values of the parameters are given as follows:

[tex]\overline{x} = 59.6, \mu = 57.7, s = 7.7, n = 286[/tex]

Hence, the test statistic is:

[tex]t = \frac{\overline{x} - \mu}{\frac{s}{\sqrt{n}}}[/tex]

[tex]t = \frac{59.6 - 57.7}{\frac{7.7}{\sqrt{286}}}[/tex]

t = 4.17.

What is the p-value?

We have a two-tailed test, as we are testing if the mean is different of a value, with 286 - 1 = 285 df and t = 4.17. Hence, using a t-distribution calculator, the p-value is of 0.0004.

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2/5 of every person that attended the Oakland Athletics ball game received an A's ball cap.
If 23,400 people attended the game, how many received an A's ball cap?

Answers

Answer:

9360

Step-by-step explanation:

2/5 is 40%

40% of 23400 is 9360

Complete the long division problem on your own sheet of paper. Then, fill in the digits.

Answers

here’s the answer! 8 divided by 416 is 52

Answer:

52

Step-by-step explanation:

5 goes in the top left under the 4 & 1 is 40 bring the 1 down drop the 6 next to the 1 write 16 under the 16 and you get 2 and at the very bottom write 0

Infusions (or intravenous drips) are used to deliver fluids and drugs to patients.

Nurses need to calculate the drip rate, D, in drops per minute for infusions.

They use the formula D =dv/60n where

d is the drop factor measured in drops per milliliter (mL)
v is the volume in mL of the infusion
n is the number of hours the infusion is required to run.

A nurse wants to double the time an infusion runs for.

Describe precisely how D changes if n is doubled but d and v do not change.

Answers

Answer:

D is halved

Step-by-step explanation:

Given :

D = -dv/60n

If n is doubled :

D' = -dv/60(2n)D' = -dv/120nD' = D/2

When n is doubled, D (the drop factor) is half of its original value.

which equation represents a line that passed through (2,-1:2) and has a sloe of 3

Answers

The equation that represents a line that passed through (2,-1:2) and has a slope of 3 is y = 3x - 18

How to determine the equation of the line?

The points are given as:

(x1, y1) = (2, -12)

The slope is given as:

m = 3

The equation of the line is calculated using:

y = m(x - x1) + y1

So, we have:

y = 3(x - 2) - 12

Open the bracket

y = 3x - 6 - 12

Evaluate

y = 3x - 18

Hence, the equation of the line is y = 3x - 18

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cot Ф = 2

please please please help

Answers

Answer:

Radians:Ф=0.46364... +π n

Degrees:Ф= 26.56505 + 180° n.

Step-by-step explanation:

Apply trig inverse properties

Ф= arccot(2) +π n

Ф=0.46364... +π n

Radians:Ф=0.46364... +π n

Degrees:Ф= 26.56505 + 180° n.

x^2 +8 x+ y^2-12 y =14 what is the center and radius

Answers

Answer:

Step-by-step explanation:

Find the slope, if it exists, of the line containing the pair of points (1, -2) and (1, - 4).​

Answers

Answer:

no answer

Step-by-step explanation:

1, -2 ; 1, -4 : -4-2/1-1 = no solution

Find the measures of all of the angles.

Answers

Answer:

a:

1. ABC = 60°

2. BCA = 90°

3. CAB = 30°

b:

XVR = WVS = 125°

RVS = 55°

RST = VSU = 110°

RSV = UST= 70°

TUS = 39°

Step-by-step explanation:

a:

According this is a Right Triangle ( BCA = 90°) and the sum angles of a triangle is 180° :

90+5x+9x+6=180

14x=84

x=6

Then we have : ABC = 9(6)+6 =60

CBA = 5(6)=30

b :

Given that the size of the opposite angles to a vertex are equal and the sum of the interior angles of a triangle is 180 degrees, the size of all angles can be easily found.

Find the area of the right triangle.

Answers

Answer:

Step-by-step explanation:

Comment

The area of a right triangle is the product of the two smaller legs divided by  2.

Givens

Horizontal Leg =   4 units.

Vertical Leg      =   8 units

Note. you count units by calling the right angle 0,0. As you move to the next square, count 1 then 2 then 3 ...

Solution

Area = 4 * 8 / 2

Area = 32 / 2

Area = 16

Answer

Area  = 16

   

Help with functions!! Thank you!!

Answers

Answer:

(s - t)(x) = 4x^2 - x - 5

(s + t)(x) = 4x^2 + x + 5

(s * t)(-1) = 16

Step-by-step explanation:

(s - t)(x) is simply the same as s(x) - t(x)

(s + t)(x) is simply the same as s(x) + t(x)

(s * t)(x) is simply the same as s(x) * t(x)

(s - t)(x) = s(x) - t(x) = 4x^2 - (x+5) = 4x^2 - x - 5

(s + t)(x) = s(x) + t(x) = 4x^2 + (x+5) = 4x^2 + x + 5

(s * t)(-1) = s(-1) * t(-1) = 4(-1)^2 * (-1+5) = 4 * 4 = 16

Find the missing values. Leave answers in simplified radical form.

Answers

Answer:

See below ~

Step-by-step explanation:

Q3

r = 8 / sin 45°r = 8 / (1/√2)r = 8√2

t  = 8 / tan 45°t = 8 / 1t = 8

Q4

f = 9√3 / sin 60°f = 9√3 / (√3/2)f = 18

o = 9√3 / tan 60°o = 9√3 / √3o = 9

#3

tan45=8/t1=8/tt=8

Simiilary

cos45=8/rr=8√2

#4

sin60=9√3/f√3/2=9√3/f1/2=9/ff=18

And

cos60=0/181/2=0/18o=18/2=9

Write the equation of the conic section shown below.

Answers

Answer:

f(x) = -5/81( x^2 -2x - 80)  

Step-by-step explanation:

The zeroes are -8 and 10 so we can write :

f(x) = -a(x - 10)(x + 8)  

( negative is because the parabola opens downwards).

The maximum value is at the vertex = 5.

f(x) = -a(x^2 - 2x - 80)

       =  a[(x - 1)^2 - 1 - 80)

        = a(x - 1)^2 - 81a

As the vertex is at f(x) = 5

81a = 5 so a = 5/81

So the equation is

f(x) = -5/81( x^2 -2x - 80)    

   

he density of gold is 19.3 g/cm3. What is the volume of a 13 g gold nugget? (Density: D = )

.25 cm3
.67 cm3
1.48 cm3
2.50 cm3

Answers

D=19.3g/cm3
m =13
D= m/v
V=m/D
=13/19.3
=0.67cm3
Answer is No 2

: Find the midpoint of the segment with the following endpoints.
(5,-5) and (2,8)

Answers

Answer:

(3.5; 1.5).

Step-by-step explanation:

1) formula for midpoint:

[tex]x=\frac{X_A-X_B}{2}; \ y=\frac{Y_A-Y_B}{2};[/tex]

2) according to the formula above the required midpoint is:

x=0.5(5+2)=3.5; y=0.5(8-5)=1.5

Please help me with my question!​

Answers

Positive and Negative Numbers on the Number Line

When we add two negative numbers, the result will be negative.

When we add a negative and a positive number, the result can be positive, negative, or equal to zero.

Take the absolute values of both numbers (disregard their signs). If the number that was positive is greater, then the result will be positive.If the number that was negative is greater, then the result will be negative.If the two numbers are equal, then the result will be 0.

When we add two positive numbers, the result will be positive.

Solving the Questionj + k

These are both negative numbers. We know this because they are both to the left of 0. When we add two negative numbers, we will get a result that is less than 0.

Less than 0

k + n

k is a negative number while n is a positive number.

Notice that on the number line, k and n appear to be at a equal distance away from 0. This means that if we were to take their absolute values, they would be equal.

This means that adding k and n would result in an answer of 0.

Equal to 0

m + n

m is a negative number while n is a positive number.

Notice that on the number line, n appears to be further away from 0 than m is. m is very close to 0.

This means that the absolute value of n would be greater than that of m. The result would therefore be positive

Greater than 0

k + m

Both these numbers are negative. Adding them would produce a negative result.

Less than 0

A bag contains 5 red marbles, 10 white marbles, and 9 blue marbles. You draw 3 marbles out at random, without replacement. What is the probability that all the marbles are red?

Answers

Answer:

5/24

Step-by-step explanation:

Number of red marbles = 5

Number of white marbles = 10

Number of blue marbles = 9

Total number of marbles = 24

P(getting red marbles) = (Number of red marbles)/(Total number of marbles)

P(getting red marbles) = 5/24

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Answers

Answer:

31 degrees

Step-by-step explanation:

90-59

=31

~rere

Answer:

<b = 31 °

Step-by-step explanation:

When the sum of two angles is equal to 90 degrees, they are called complementary angles

So . .

Because the sum is 90 subtract!

90 - 59 = 31

<b = 31 °

Simplify 22-2(12/4+2*3)/3+7

Answers

Answer: 23

Step-by-step explanation:

A mathematical symbol, or combination of symbols, representing a value, or relation. Example:  2+2=4 .

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