Suppose you have a choice of investing in one of the following:a. A zero-coupon bond, which costs $513.60, today, pays nothing during its life, and then pays $1,000 after 5 years.b. A bond that costs $1,000 today, pays $113 in interest semiannually, and matures at the end of five years with a par value of $1,000 to be repaid. Which bond would provide the higher yield?

Answers

Answer 1

The two yields, the zero-coupon bond (option a) offers a higher yield at approximately 14.20%.

To determine which bond provides a higher yield, we need to calculate the yield to maturity (YTM) for both options:

a. For the zero-coupon bond, we'll use the formula: (Future Value / Present Value)^(1/n) - 1
YTM_a = ($1,000 / $513.60)^(1/5) - 1 ≈ 14.20%

b. For the semiannual bond, we'll use a financial calculator or spreadsheet software:
Present Value (PV) = -$1,000 (negative because it's an outflow)
Future Value (FV) = $1,000
Payment (PMT) = $113
Number of periods (N) = 5 years × 2 = 10
Solve for the interest rate (I/Y) and multiply by 2 to get the annual YTM:
YTM_b ≈ 11.30%

For more about zero-coupon bond:

https://brainly.com/question/14473546


#SPJ4


Related Questions

Martha consumes two goods: pizza and bottled water. If Martha increased her consumption of both goods when her income increased, both Pepsi and bottled water A must be perfect complements, must be goods on which she does not have to pay sales tax. B must both exhibit the property of diminishing marginal utility о с. D. must be normal goods.

Answers

Option A is Correct. Both Pepsi and bottled water must be perfect complements because a complement is a good that is consumed with another good in fixed proportion.

If the consumption of one good increases, the consumption of the other good should also increase by the same proportion. Martha's consumption of both pizza and bottled water must be unaffected by sales tax because a good that is subject to sales tax will have a higher price and a lower quantity demanded than the same good without sales tax. If sales tax affected her consumption of both goods, it would imply that the good on which she pays sales tax is not a perfect complement.

Martha's consumption of both pizza and bottled water must be unaffected by income because income affects the quantity demanded of a good only if it affects the individual's ability to purchase the good. If income affects the individual's ability to purchase the good, it would imply that the good is a normal good.

Learn more about complements Visit: brainly.com/question/28420400

#SPJ4

Suppose the reserve requirement ratio is 0.10 and the central bank carries out an open market purchase of government bonds with Bank A in the amount of $5,000.
a) How much of this $5,000 does Bank A lend out?
$ 4,500.00 Numeric Response 1.Edit Unavailable. 4,500.00 correct..
b) Assuming all of these new loans end up as new deposits in Bank B, how much can Bank B lend out?
$ 4,050.00 Numeric Response 2.Edit Unavailable. 4,050.00 correct..
c) As the process of banks creating loans and deposits continues, the additional contribution to the increase in money supply for each subsequent bank gets smaller Correct.
d) The total ultimate increase in the money supply as a result of an open market purchase of $5,000 when the reserve requirement ratio is 0.10 is $ 50,000.00 Numeric Response 3.Edit Unavailable. 50,000.00 correct..

Answers

The correct statement is that the total ultimate increase in the money supply as a result of the open market purchase of $5,000 when the reserve requirement ratio is 0.10 is $50,000.

a) Bank A can lend out 90% of the $5,000 received from the open market purchase, considering a reserve requirement ratio of 0.10. Therefore, Bank A can lend out:

$5,000 * (1 - 0.10) = $4,500

b) If all the new loans from Bank A end up as new deposits in Bank B, Bank B can lend out 90% of the $4,500 received. Therefore, Bank B can lend out:

$4,500 * (1 - 0.10) = $4,050

c) Correct, as the process of banks creating loans and deposits continues, the impact of each subsequent bank's lending on the increase in the money supply becomes smaller. This is due to the reserve requirement, which limits the amount banks can lend out.

d) The total ultimate increase in the money supply as a result of the open market purchase of $5,000, considering a reserve requirement ratio of 0.10, can be calculated using the money multiplier formula:

Total increase in money supply = (Initial deposit) / (Reserve requirement ratio)

Total increase in money supply = $5,000 / 0.10 = $50,000

learn more about reserve here:

https://brainly.com/question/31800442

#SPJ11

Which of the following is an external setup for a printer with a single paper tray and ink cartridge? Multiple Choice Canceling all printing tasks to remove a paper jam Changing the paper tray for a different kind of paper stock needed Preparing a paper tray with the paper stock needed for the next printing task Changing the ink cartridge of a printer

Answers

According to the question the correct answer is: Changing the ink cartridge of a printer.

An ink cartridge replacement is an external setup for a printer with a single paper tray and ink cartridge. It involves removing the old ink cartridge and installing a new one to ensure the printer has an adequate supply of ink for printing. This process is necessary when the ink level is low or depleted and allows the printer to continue producing high-quality prints.

The other options mentioned in the question are not related to external setup but rather involve internal maintenance or operational tasks.

To learn more about ink cartridge
https://brainly.com/question/30832175
#SPJ11

pick the advantage of a certificates of deposit from this list of possibilities.

Answers

One advantage of a certificate of deposit (CD) is its relatively low risk compared to other investments, providing a secure and guaranteed return on the deposited amount.

Investments refer to the allocation of funds or resources with the expectation of generating returns or profits over time. They can take various forms, including stocks, bonds, real estate, mutual funds, commodities, and more. Investing allows individuals and businesses to grow their wealth, preserve capital, and achieve financial goals. Investments also provide opportunities for diversification, income generation, and potential capital appreciation. However, investments inherently carry risks, including the possibility of losses. Proper research, risk assessment, and a well-balanced portfolio are essential for successful investing.

Learn more about Investments here:

https://brainly.com/question/29859128

#SPJ11

Which of the following represents the correct journal entry to record a taxable cash sale of $1,080 if the sales tax rate is 5%?

A debit to cash for $1,134, a debit to sales tax expense for $54, and a credit to sales revenue for $1,080.

A debit to cash for $1,134, a credit to sales tax payable for $54, and a credit to sales revenue for $1,080.

A debit to cash for $1,080, a credit to sales tax payable for $54, and a credit to sales revenue for $1,026.

None of these answer choices is correct.

Answers

The appropriate journal entry to document a $1,080 taxable cash sale with a 5% sales tax would be:

a $1,080 debit to cash, a $54 credit to sales tax due, and a $1,026 credit to sales revenue.

The reason for the journal entry is as follows:

Debit of $1,080 to cash: This indicates the growth in the cash account as a result of the sale.

Credit for the $54 in sales tax that is due: This documents the obligation the business has to pay the sales tax that was collected. The amount of tax that the business must pay to the tax authorities after being collected from customers is represented by the sales tax payable account.

Credit to sales revenue for $1,026: This represents the portion of the cash sale that is attributable to the actual goods or services provided, excluding the sales tax amount.

By recording the above journal entry, the company properly recognizes the cash received, establishes the sales tax liability, and accurately records the sales revenue net of the sales tax. This ensures compliance with tax regulations and provides an accurate representation of the company's financial transactions.

For more such question on journal

https://brainly.com/question/618225

#SPJ11

on january 1, 2018, brunswick corporation issued 100, 3-year bonds with a stated rate of 12%. at the time of issuance, similar bonds had an interest rate of 10%. assume coupon payments every six months and a $1,000 face value per bond. prepare a journal entry for the bond issuance on 1/1/2018 and the final two journal entries required on december 31st of 2020.

Answers

The difference is recorded in the Discount/Premium on Bonds Payable account. The interest payment is recorded as a decrease in cash, and the accrued interest payable is reduced.

Journal Entry for Bond Issuance on January 1, 2018:

Debit: Cash ($100,000) - [$1,000 face value per bond x 100 bonds]

Credit: Bonds Payable ($100,000) - [$1,000 face value per bond x 100 bonds]

Explanation: Brunswick Corporation issues 100 bonds with a face value of $1,000 each, resulting in a total cash inflow of $100,000. The corresponding liability, Bonds Payable, is recorded.

Journal Entries on December 31, 2020:

Accrued Interest Expense:

Debit: Interest Expense ($12,000) – [$100,000 face value × 12% stated rate × (12/12)]

Credit: Accrued Interest Payable ($12,000) – [$100,000 face value × 12% stated rate × (12/12)]

Explanation: As of December 31, 2020, Brunswick Corporation needs to accrue interest expense on the bonds. The interest expense is calculated based on the face value of the bonds, the stated interest rate, and the time period (12 months).

    2. Bond Interest Payment and Amortization of Discount/ Premium:

Debit: Bond Interest Expense ($10,000) – [$100,000 face value x 10% market rate x (6/12)]

Debit/Credit: Discount/Premium on Bonds Payable (varies) – Difference between stated rate and market rate

Debit: Accrued Interest Payable ($2,000) – [$100,000 face value x 10% market rate x (6/12)]

Credit: Cash ($12,000) – [$100,000 face value x 12% stated rate x (6/12)]

Explanation: On December 31, 2020, Brunswick Corporation records the semi-annual bond interest payment. The interest expense is calculated based on the face value of the bonds, the market interest rate, and the time period (6 months). If the market rate is higher than the stated rate, a discount is amortized. If the market rate is lower than the stated rate, a premium is amortized. The difference is recorded in the Discount/Premium on Bonds Payable account. The interest payment is recorded as a decrease in cash, and the accrued interest payable is reduced.

To learn more about interest expense, Click here: brainly.com/question/29492215

#SPJ11

Find the expected percentage of employment growth if the percentage of product or process innovators is 2%. Round your answer to three decimal places. E(Y2) = %

Answers

The expected percentage of employment growth (E(Y2)) when the percentage of product or process innovators is 2% is approximate -5.2832%.

Based on the given regression line equation, y = -5.399 + 5.790x, we can determine the relationship between the percentage of small firms that are product or process innovators (x) and the yearly percentage of employment growth (y) for small firms in Argentina.

To find the expected percentage of employment growth when the percentage of product or process innovators is 2%, we can substitute x = 0.02 into the regression line equation and solve for y.

Substituting x = 0.02 into the equation y = -5.399 + 5.790x:

y = -5.399 + 5.790(0.02)

y = -5.399 + 0.1158

y ≈ -5.2832

To learn more about product follow the link:

https://brainly.com/question/30164713

#SPJ4

The correct question is:

A recent study considered the effects of innovation on employment in Latin America. It seems reasonable that as more firms produce new products, they would need more workers, and employment would rise. For small firms in Argentina, let y be the yearly percentage of employment growth and let x be the percentage of small firms that are product or process innovators. Assume the estimated regression line is y = -5.399 + 5.790x. Find the expected percentage of employment growth if the percentage of product or process innovators is 2%. Round your answer to three decimal places. E(Y2) = %

which type of business is least likely to be bought by large companies?

Answers

The type of business that is least likely to be bought by large companies is one that is very niche or specialized.

This is because large companies often have their own specialized departments that can handle these tasks in-house.

Additionally, if a business is too small or focused, it may not be seen as profitable enough for a larger company to invest in.

For example, a small artisanal chocolate shop may not be attractive to a large food corporation because the profits may not be significant enough to justify the acquisition.

So, in short, a business that is too niche or too small may be the least likely to be bought by a large company.

Know more about niche busieness here:

https://brainly.com/question/1519816

#SPJ11

the cash budget should be broken down into time periods that are as long as feasible. group startstrue or false

Answers

The statement is True. A cash budget is a financial plan that outlines a company's projected cash inflows and outflows over a specific period. This budget is critical for businesses as it helps them to determine whether they have enough cash to meet their financial obligations, such as paying bills, buying inventory, or paying salaries.

When creating a cash budget, it is essential to break it down into time periods that are as long as feasible. The reason for this is that it allows businesses to have a clear understanding of their cash flow over different periods, whether it's weekly, monthly, or quarterly. By breaking down the budget into smaller time frames, businesses can identify any potential cash flow problems and take corrective action before it's too late.
For example, if a business has a monthly cash budget, they can quickly identify when they may have a cash shortfall and take steps to address it, such as delaying payments or increasing sales. On the other hand, if the budget was only broken down into an annual period, the business may not realize they have a problem until it's too late.
In summary, breaking down the cash budget into feasible time periods is essential to ensure that businesses have a clear understanding of their cash flow and can take corrective action when necessary.

To know more about cash budget visit :

https://brainly.com/question/31541270

#SPJ11

if the firm produces q1 units of output with two inputs, the firm will be experiencing which of the following in the short run and in the long run? responses short run long run increasing marginal returns economies of scaleshort run long run increasing marginal returns economies of scale , short run long run increasing marginal returns diseconomies of scaleshort run long run increasing marginal returns diseconomies of scale , short run long run diminishing marginal returns economies of scaleshort run long run diminishing marginal returns economies of scale , short run long run diminishing marginal returns diseconomies of scaleshort run long run diminishing marginal returns diseconomies of scale , short run long run constant marginal returns diseconomies of scale

Answers

Answer:

It is not possible to determine the answer to this question without more information. The relationship between the inputs and the output is not known, so we cannot determine whether the firm will experience increasing, diminishing, or constant marginal returns. Similarly, we do not know how the firm's costs will change as it produces more output, so we cannot determine whether the firm will experience economies or diseconomies of scale.

a loan of l is taken over ten years and will be repaid using the sinking fund method with equal size quarterly payments (i.e. end of quarter) each of size 387.57 at a nominal annual interest rate of q% compounded quarterly. the outstanding balance for this loan after the 20th payment is 0.59774l. calculate l. give your answer rounded to the nearest whole number (i.e. x).

Answers

To calculate the loan amount (l), you can use the sinking fund formula with the given information and adjust it based on the outstanding balance after the 20th payment.

To calculate the loan amount (l), we will use the sinking fund method formula and the given information. Here's a step-by-step explanation:

1. Since the nominal annual interest rate is q% compounded quarterly, the quarterly interest rate (i) is q/4%.

2. Convert the interest rate to decimal form: i = (q/4)/100.

3. The sinking fund formula is: P = R * [(1+i)ⁿ - 1]/i, where P is the present value (loan amount), R is the quarterly payment, i is the quarterly interest rate, and n is the number of payments.

4. We know that after the 20th payment, the outstanding balance is 0.59774l. So, we can find the present value (P) of the remaining payments (n = 40-20 = 20) using the same formula: 0.59774l = 387.57 * [(1+i)²⁰ - 1]/i.

5. Divide both sides of the equation by 0.59774: l = 387.57 * [(1+i)²⁰ - 1] / (0.59774 * i).

6. To find the value of l, you would need to know the value of q. Once q is known, you can substitute it into the equation, solve for l, and round it to the nearest whole number. Knowing the nominal annual interest rate (q) would allow you to solve for l.

For more about sinking fund:

https://brainly.com/question/32258655


#SPJ4

When importing data records from MS Excel, which of the following is FALSE? a) You can use the Append button b) The column widths and row heights in the Excel table must match the Access table defaults c) The formats should match d) The first row of the Excel file must contain the field names from the Access table

Answers

When importing data records from MS Excel, the false statement is "The column widths and row heights in the Excel table must match the Access table defaults." Option b is  answer.

When importing data records from MS Excel to Access, it is not necessary for the column widths and row heights in the Excel table to match the Access table defaults. The column widths and row heights can vary between the two applications without affecting the import process. The important factors to consider are the data formats, such as text, numbers, and dates, which should match between Excel and Access.

The first row of the Excel file should contain the field names from the Access table, as this helps in mapping the data correctly during the import. Additionally, the Append button can be used to add the imported data records to an existing table in Access.

Option b is  answer.

You can learn more about MS Excel at

https://brainly.com/question/24749457

#SPJ11

Which of the following are general principals associated with lean operations? I. Reduce fixed ordering and set-up costs associated with your system. II. Improve the material handling and facility layout within your system. III. Increase the number of outside vendors (suppliers) you deal with. a. I, II and III b. ll only c. I and II d. I only e. Il and III

Answers

The correct option, "The following are general principles associated with lean operations" is c. I and II.

The general principles associated with lean operations focus on maximizing efficiency, reducing waste, and continuously improving processes. With this in mind, the correct option to the question is option c, which includes the principles of reducing fixed ordering and set-up costs associated with the system and improving material handling and facility layout.

These principles are aimed at streamlining operations, reducing lead time, and increasing customer satisfaction by delivering high-quality products or services on time. The third option, increasing the number of outside vendors or suppliers, is not a general principle of lean operations.

Instead, lean operations focus on reducing the number of suppliers to improve communication and reduce complexity. In conclusion, lean operations require a systematic approach to process improvement, and the general principles associated with it involve simplifying processes, minimizing waste, and optimizing efficiency.

Thus, "The following are general principles associated with lean operations" is c. I and II.

Know more about the lean operations

https://brainly.com/question/29347116

#SPJ11

.Because of the emerging demand, Amazon decided to start new warehouses in the Gulf Coast. Based on their studies, four potential locations for warehouses have been identified, each of which having a specific capacity and also a specific average cost-per-unit for shipping to any of the five Gulf Coast states. The capacity of each warehouse and its operating cost, in addition to the average cost-per-unit for shipping a product to any of the states are given in the following table.

TX LA MS AL FL Ops Cost Capacity
WH1 $2.00 $4.00 $3.00 $2.50 $1.50 $10,000 14,000
WH2 $3.00 $2.50 $3.75 $2.00 $1.75 $8,000 18,000
WH3 $2.75 $2.00 $3.25 $3.00 $4.00 $7,000 16,500
WH4 $1.25 $1.75 $4.00 $3.50 $3.00 $12,000 16,000
The average demand for each of the states is given in this table.

TX LA MS AL FL
Demand 8,000 units 3,500 units 4,000 units 2,000 units
7,000 units

Question: Build a model in Excel and use Solver to find which warehouses should Amazon operate to meet demand in the most cost-effective manner. In addition, based on the designed model, have to come out the LP math formula to explain the design.

Answers

To solve this problem using Excel and Solver, we can set up a linear programming model.

The objective is to minimize the total cost of operating warehouses while meeting the demand for each state. Let's define the decision variables, constraints, and objective function.

Decision Variables:

Let:

x1 = Number of units shipped from Warehouse 1

x2 = Number of units shipped from Warehouse 2

x3 = Number of units shipped from Warehouse 3

x4 = Number of units shipped from Warehouse 4

Objective Function:

Minimize the total cost of operating warehouses:

Total Cost = (Cost per unit from WH1 * x1) + (Cost per unit from WH2 * x2) + (Cost per unit from WH3 * x3) + (Cost per unit from WH4 * x4) + (Operating cost of WH1) + (Operating cost of WH2) + (Operating cost of WH3) + (Operating cost of WH4)

Subject to:

Demand constraints for each state:

x1 + x2 + x3 + x4 >= Demand for TX

x1 + x2 + x3 + x4 >= Demand for LA

x1 + x2 + x3 + x4 >= Demand for MS

x1 + x2 + x3 + x4 >= Demand for AL

x1 + x2 + x3 + x4 >= Demand for FL

Capacity constraints for each warehouse:

x1 <= Capacity of WH1

x2 <= Capacity of WH2

x3 <= Capacity of WH3

x4 <= Capacity of WH4

Non-negativity constraints:

x1, x2, x3, x4 >= 0

You can set up this linear programming model in Excel using the Solver add-in. Here are the steps to follow:

Open Excel and enter the data for warehouses' costs, capacities, operating costs, and demand.

Define the decision variables by creating cells for x1, x2, x3, and x4.

Set up a cell to calculate the total cost using the objective function formula.

Create cells to represent the constraints based on the demand and capacity constraints mentioned above.

Use Solver to find the optimal solution:

a. Go to the "Data" tab and click on "Solver" in the "Analysis" group.

b. Set the objective to minimize the total cost cell.

c. Set the decision variable cells as adjustable cells.

d. Set the constraints based on the demand and capacity constraints.

e. Click "Solve" to find the optimal solution.

Once Solver finds the optimal solution, it will populate the decision variable cells (x1, x2, x3, x4) with the values that meet the demand in the most cost-effective manner.

The LP math formula to explain the design is as follows:

Minimize:

Total Cost = (Cost per unit from WH1 * x1) + (Cost per unit from WH2 * x2) + (Cost per unit from WH3 * x3) + (Cost per unit from WH4 * x4) + (Operating cost of WH1) + (Operating cost of WH2) + (Operating cost of WH3) + (Operating cost of WH4)

Subject to:

x1 + x2 + x3 + x4 >= Demand for TX

x1 + x2 + x3 + x4 >= Demand for LA

x1 + x2 + x3 + x4 >= Demand for MS

x1 + x2 + x3 + x4 >= Demand for AL

x1 + x2 + x3 + x4 >= Demand for FL

x1 <= Capacity of WH1

for more such questions on model

https://brainly.com/question/24553900

#SPJ11

observers say that in contemplating one's business, one must start with

Answers

When contemplating one's business, observers often emphasize the importance of starting with a clear understanding of the customer or market needs.

This customer-centric approach recognizes that the success of a business ultimately depends on its ability to satisfy customer demands and create value for them.

By starting with an understanding of customer needs, entrepreneurs and business owners can:

1. Identify Opportunities: Recognizing customer needs helps identify gaps in the market or areas where existing solutions are inadequate. This insight enables entrepreneurs to develop innovative products or services that address those needs and offer unique value propositions.

2. Tailor Offerings: Understanding customer needs allows businesses to customize their offerings to meet specific requirements. By aligning products, services, features, pricing, and customer experiences with customer preferences, businesses can enhance their competitiveness and increase customer satisfaction.

3. Build Relationships: Customer needs provide a foundation for building strong relationships. By consistently meeting and exceeding expectations, businesses can foster customer loyalty and develop long-term partnerships, resulting in repeat business and positive word-of-mouth referrals.

4. Drive Innovation: Customer needs act as a driving force for innovation and continuous improvement. By staying attuned to evolving customer demands, businesses can proactively adapt their offerings, introduce new features, or explore new market segments, ensuring their relevance and competitiveness in the long run.

Starting with a customer-focused mindset helps businesses orient their strategies, decisions, and actions towards meeting customer needs effectively. It sets the stage for sustainable growth, profitability, and success by placing customers at the heart of the business's mission and value proposition.

Learn more about :  

customer-centric approach : brainly.com/question/28342552

#SPJ11

the terminology of defender is the proposed new equipment, and challenger is the current equipment in place. True or False

Answers

False. The terminology of defender is the proposed new equipment, and challenger is the current equipment in place.

The terminology of "Defender" and "Challenger" does not specifically refer to new or current equipment. These terms are commonly used in various contexts, such as sports competitions or decision-making processes, to describe opposing sides or entities. In a given scenario, the defender could represent the existing equipment or system being used, while the challenger could represent a new or alternative option being considered. However, without specific context, it is not accurate to assume that "Defender" always refers to proposed new equipment and "Challenger" always refers to the current equipment in place.

Learn more about defender and challenger here:

https://brainly.com/question/32094159

#SPJ11

which total dollar amount would an an insurance plan pay toward the cost of dental care over a specific period?

Answers

The total dollar amount an insurance plan would pay toward the cost of dental care over a specific period is typically referred to as the maximum annual benefit or maximum allowable benefit.

Insurance plans, including dental insurance, often have a maximum annual benefit limit. This limit represents the maximum amount of money the insurance plan will pay toward dental care expenses within a specific period, usually a calendar year. The maximum annual benefit varies depending on the specific insurance plan and can range from a few hundred dollars to several thousand dollars.

Once the maximum annual benefit is reached, the insurance plan will no longer provide coverage for dental care expenses during that specific period. Any additional costs incurred beyond the maximum benefit would be the responsibility of the individual receiving the dental care.

It's important for individuals to review and understand the details of their dental insurance plan, including the maximum annual benefit, to ensure they have a clear understanding of their coverage and any potential out-of-pocket expenses they may incur.

To learn more about Insurance  click here

brainly.com/question/989103

#SPJ11

in the context of business ethics, _____ refers to a decision that involves a conflict of values.

Answers

In the context of business ethics, a dilemma refers to a decision that involves a conflict of values.

When can this happen?

This can occur when a company or individual is faced with a situation where there are multiple options, but each option comes with its own set of ethical considerations.

For example, a company may be faced with the decision to cut costs by outsourcing labor to a country with lower wages, but this may conflict with their values of fair labor practices and social responsibility.

Dilemmas require careful consideration of all the options and their potential consequences to ensure that the decision aligns with the company's ethical principles.

Ultimately, ethical dilemmas require individuals and companies to balance their values and obligations in a way that upholds their integrity and social responsibility.

To know more on business ethics visit:

https://brainly.com/question/30397877

#SPJ11

A client has requested advice on a potential investment opportunity involving an income producing property. She would like you to determine the internal rate of return of the investment opportunity based on the following information:

a. Expected Holding Period:5 years

b. End of first year NOI estimate: $113,900

c. NOI estimates in subsequent years will grow by 5% per year

d. Price at which the property is expected to be sold at the end of year 5: $1,615,205.22

e. Current market price of the property: $1,475,667.71

f. Use the Trial and Error method with discount rate of 9% and 11% for NPV calculation them determine the IRR between it.

Answers

To calculate the internal rate of return (IRR) for the investment opportunity, we need to determine the discount rate at which the net present value (NPV) of the cash flows is zero.

We'll use the trial and error method with discount rates of [tex]9[/tex]% and [tex]11[/tex]% to calculate the NPV and determine the internal rate of return. First, let's calculate the expected cash flows for each year. The net operating income (NOI) estimates in subsequent years will grow by [tex]5[/tex]% per year:

Year 1: $[tex]113,900[/tex]

Year 2: $[tex]113,900 * 1.05 = $119,595[/tex]

Year 3: $[tex]119,595 * 1.05 = $125,575.75[/tex]

Year 4: $[tex]125,575.75 * 1.05 = $131,854.54[/tex]

Year 5: $[tex]131,854.54 * 1.05 = $138,447.27[/tex]

Next, calculate the NPV using the formula:

NPV = [tex](Cash Flow Year 1 / (1 + Discount Rate)^1) + (Cash Flow Year 2 / (1 + Discount Rate)^2) + ... + (Cash Flow Year 5 + Sale Price / (1 + Discount Rate)^5)[/tex]

Using a discount rate of 9%:

[tex]NPV = ($113,900 / (1 + 0.09)^1) + ($119,595 / (1 + 0.09)^2) + ($125,575.75 / (1 + 0.09)^3) + ($131,854.54 / (1 + 0.09)^4) + ($138,447.27 + $1,615,205.22 / (1 + 0.09)^5)[/tex]

Calculating the NPV using the discount rate of 9% yields a negative value.

Similarly, using a discount rate of 11%:

NPV = [tex]($113,900 / (1 + 0.11)^1) + ($119,595 / (1 + 0.11)^2) + ($125,575.75 / (1 + 0.11)^3) + ($131,854.54 / (1 + 0.11)^4) + ($138,447.27 + $1,615,205.22 / (1 + 0.11)^5)[/tex]

Calculating the NPV using the discount rate of 11% yields a positive value.

Since the NPV is negative at 9% and positive at 11%, we can conclude that the IRR falls between these two rates. To determine the exact IRR, further, iterations using a narrower range can be performed until a more precise rate is obtained.

To learn more about internal rate of return, visit here

https://brainly.com/question/29569213

#SPJ4

the gross profit ratio is computed as gross profit divided by__. multiple choice question. a. cost of goods sold b. total assets c. net income d. net sales

Answers

The gross profit ratio is computed as gross profit divided by net sales (option d).

The gross profit ratio is an important financial ratio used to measure a company's profitability and efficiency in generating revenue from the sale of goods. It is calculated by dividing the gross profit by the net sales. The gross profit is the difference between the cost of goods sold and the net sales revenue. When computing the gross profit ratio, it is important to use the correct denominator. The multiple-choice options provided are cost of goods sold, total assets, net income, and net sales.

This is because the gross profit is derived from the sales revenue, and the ratio is used to assess the company's ability to generate revenue and manage costs effectively. The gross profit ratio is a useful tool for investors and analysts to evaluate a company's profitability and compare it to industry benchmarks. A higher gross profit ratio indicates that a company is able to generate more revenue from its products, while keeping its costs under control.

A lower ratio may suggest that a company is struggling to manage its costs or may be experiencing pricing pressures from competitors. In conclusion, the gross profit ratio is an important financial metric used to evaluate a company's profitability and efficiency. When computing the ratio, it is crucial to use the correct denominator, which in this case is net sales. The correct option is d.

For more about net sales:

https://brainly.com/question/28903071

#SPJ4

Suppose the amounts presented here are basic financial information (in millions) from the 2014 annual reports of Nike and adidas.
Nike Adidas
Sales Revenue $19,320.0 $10,352
Allowance for doubtful accounts, beginning 84.0 130
Allowance for doubtful accounts, ending 108.5 138
Accounts receivables balance gross, beginning 2,915.7 1,623
Accounts receivable balance gross, ending 3,061.7 1,431
Calculate the accounts receivable turnover for both companies. Round answers to 1 decimal place
Nike Adidas
Accounts receivable turnover _____times _____times
Calculate the average collection period for both companies. Round answers to 1 decimal place.
Nike Adidas
Average collection period _____days _____days

Answers

The accounts receivable turnover for Nike is 12.4 times, while for Adidas, it is 7.2 times.

The accounts receivable turnover is a financial metric that measures how quickly a company collects payments from its customers. It is calculated by dividing the sales revenue by the average accounts receivable balance.
Nike's accounts receivable turnover = Sales Revenue / Average Accounts Receivable
Nike's accounts receivable turnover = $19,320.0 / (($2,915.7 + $3,061.7) / 2)
Nike's accounts receivable turnover ≈ $19,320.0 / $2,988.7 ≈ 6.5 times

Adidas' accounts receivable turnover = Sales Revenue / Average Accounts Receivable
Adidas' accounts receivable turnover = $10,352 / (($1,623 + $1,431) / 2)
Adidas' accounts receivable turnover ≈ $10,352 / $1,527 ≈ 6.8 times
Therefore, Nike's accounts receivable turnover is approximately 12.4 times, and Adidas' accounts receivable turnover is approximately 7.2 times.
The average collection period is calculated by dividing the number of days in a year by the accounts receivable turnover.
Average Collection Period = 365 days / Accounts Receivable Turnover
Nike's average collection period ≈ 365 days / 12.4 ≈ 29.4 days
Adidas' average collection period ≈ 365 days / 7.2 ≈ 50.7 days
Therefore, Nike's average collection period is approximately 29.4 days, and Adidas' average collection period is approximately 50.7 days.:

To know more about Sales Revenue, click here https://brainly.com/question/28580932

#SPJ11

an administrator at ursa major solar wants to allow a sales user to relate an opportunity to a campaign. what are two ways to accomplish this goal? choose 2 answers a. choose the primary campaign source for the opportunity. b. use the campaign hierarchy related list on the opportunity. c. select the campaign record type when creating the opportunity. d. utilize the campaign influence related list on the opportunity.

Answers

To allow a sales user at Ursa Major Solar to relate an opportunity to a campaign, two ways to accomplish this goal are:

Choose the primary campaign source for the opportunity.

Use the campaign hierarchy related list on the opportunity.

a. Choose the primary campaign source for the opportunity: When creating or editing an opportunity, the sales user can manually select the primary campaign source from a list of available campaigns. This establishes a direct relationship between the opportunity and the chosen campaign.

b. Use the campaign hierarchy related list on the opportunity: The sales user can access the campaign hierarchy related list on the opportunity record. This list displays the campaigns associated with the opportunity, allowing the user to relate or add campaigns as needed. It provides a visual representation of the campaign hierarchy and allows for easy management of campaign relationships.

To know more about Ursa Major Solar, click here:

https://brainly.com/question/30144798

#SPJ11

because a monopolist is the sole producer in its market, it can necessarily alter the price of its good (i) without affecting the quantity sold. (ii) without affecting its average total cost. (iii) by adjusting the quantity it supplies to the market. a. (ii) only b. (ii) and (iii) only c. (iii) only d. (i) and (ii) only

Answers

A monopolist, as the sole producer in its market, has the ability to alter the price of its good without affecting the quantity sold and without affecting its average total cost.

The correct answer is option d) (i) and (ii) only. As a monopolist, the firm has significant control over the price of its goods due to its market power and lack of competition.

Firstly, a monopolist can alter the price of its good without affecting the quantity sold. Since it is the sole producer in the market, it can set the price based on the demand elasticity and its desired profit level. The monopolist can increase or decrease the price without worrying about losing customers to competitors, as there are none. However, altering the price may still have an impact on the quantity demanded by consumers, as a higher price may lead to a decrease in demand and vice versa.

Secondly, a monopolist can adjust the price without affecting its average total cost. The average total cost is determined by the firm's production and cost structure, and it remains constant regardless of the price set by the monopolist. The monopolist's ability to charge a price higher than its average total cost allows for the potential to earn economic profits in the long run.

Option (iii) is incorrect because a monopolist does not adjust the quantity it supplies to the market solely to change the price. Instead, the monopolist determines the quantity supplied based on the profit-maximizing level, considering both market demand and cost factors.

Learn more about monopolist here:

https://brainly.com/question/28938683

#SPJ11

a clothing firm promotes coats regularly, but advertises more in september, for back-to-school and also in december/january for the holidays and then also in april when it rains more. therefore, they run ads continuously but have 3 occasions of heavier placement. this is called:

Answers

The term for this type of advertising strategy is seasonal advertising. Seasonal advertising refers to the practice of promoting products or services during specific times of the year when consumer demand is higher or when there are special events or occasions that are relevant to the product or service being offered.

In the case of the clothing firm, they promote their coats regularly but increase their advertising efforts during three specific times of the year when there is a higher demand for their products due to weather changes or special occasions. This allows them to make the most of their advertising budget by strategically placing ads during times when they are most likely to reach their target audience and generate the most sales.

Pulsing is a combination of continuous and flighted advertising schedules. It involves running ads continuously but with heavier placements during specific periods or occasions, such as September for back to school, December/January for the holidays, and April for increased rainfall in the case of the clothing firm promoting coats. This strategy allows the firm to maintain a consistent presence while capitalizing on key moments when their products are in higher demand.

To know more about advertising visit:

https://brainly.com/question/11376756

#SPJ11

currently microland produces fewer cars and trucks than it can efficiently produce. we can illustrate the situation by drawing a point where microland is its production possibilities frontier for cars and trucks

Answers

Microland is operating below its production possibilities frontier for cars and trucks, indicating that it is producing fewer vehicles than it is capable of producing efficiently.

Microland's production possibilities frontier represents the maximum output of cars and trucks that the company can produce given its available resources and technology. When operating below this frontier, it means that Microland is not utilizing its resources efficiently and is producing below its potential.

There could be several reasons for Microland's underutilization of production capacity. It could be due to factors such as inefficient production processes, inadequate workforce, limited access to raw materials, or low demand for cars and trucks in the market. It may also indicate that Microland is facing constraints in terms of capital investment or technological advancements that hinder its ability to produce at its full potential.

To rectify the situation and move towards the production possibilities frontier, Microland can focus on improving its operational efficiency, optimizing its production processes, investing in research and development, and exploring opportunities to increase market demand for its vehicles. By identifying and addressing the underlying factors causing underproduction, Microland can enhance its productivity and move closer to its production possibilities frontier.

Learn more about production here: brainly.com/question/30333196

#SPJ11

The shift from managers planning their work" (, strategy formulation) to " working their plan" (i.e., strategy implementation) includes all but which of the following things :

A) identifying short-term objectives.
B) initiating specific functional tactics.
C) communicating policies that empower people in the organization.
D) developing corporate and business strategies.
E) designing effective rewards.

Answers

According to the question the D) developing corporate and business strategies.

The shift from strategy formulation to strategy implementation focuses on executing the strategies that have already been developed. It involves translating the high-level strategies into actionable plans and activities. The options A, B, C, and E all relate to aspects of strategy implementation:
A) Identifying short-term objectives: This is part of the process of breaking down the overall strategy into specific, measurable objectives that can guide actions in the short term.
B) Initiating specific functional tactics: This involves determining the specific actions and tactics to be employed by different functional areas or departments to support the strategy and achieve the defined objectives.
C) Communicating policies that empower people in the organization: Effective communication of policies that empower employees and provide them with the necessary authority and autonomy to execute the strategy is crucial for successful implementation.
E) Designing effective rewards: Designing reward systems that align with the strategic goals and motivate employees to perform their best in implementing the strategy is an important aspect of successful strategy implementation.
However, D) developing corporate and business strategies is part of the strategy formulation stage, where managers analyze the internal and external environment, set overall objectives, and decide on the broad strategies to achieve them. It is not part of the shift from planning to working the plan in the context mentioned in the question.


To learn more about corporate
https://brainly.com/question/28284743
#SPJ11

a straddle requires purchasing one call and one put on the same asset with the same strike price. for this data the payoff for a straddle is
a.52
b.-51
c.50
d.-57
e.-55

Answers

Without any additional information on the asset's current price, it is impossible to calculate the exact payoff for the straddle. Therefore, none of the provided options can be selected as the correct answer.

Based on the given information, the straddle strategy involves purchasing one call and one put option on the same asset at the same strike price. The payoff for a straddle is the difference between the call option's payoff and the put option's payoff, at expiration. A straddle involves purchasing one call and one put on the same asset with the same strike price. The payoff for a straddle can be calculated as the sum of the payoffs from the call and put options. Based on the data provided, it's not possible to determine the exact payoff. Please provide more information about the call and put options, including their strike prices and premiums, to help calculate the correct payoff.

To learn more about strike price, visit:

https://brainly.com/question/17055829

#SPJ11

Identify a component in the formation of rust. A) salt B) moisture C) acid D) all of the above E) none of the above

Answers

The component in the formation of rust is moisture. Therefore, the correct answer is B) moisture.

Rust is a type of corrosion that occurs on iron or iron alloys when they are exposed to oxygen and water. Moisture plays a crucial role in the formation of rust because it provides the necessary water molecules for the oxidation process to occur.

When iron or iron alloys come into contact with moisture, a chemical reaction called oxidation takes place. Oxygen from the air combines with the iron atoms, forming iron oxide or rust. This reaction is accelerated in the presence of water because it facilitates the movement of ions and electrons, allowing for the transfer of oxygen and the corrosion process to occur more rapidly.

While salt and acid can contribute to the corrosion process, they are not essential components in the formation of rust. Salt, such as sodium chloride, can accelerate the rusting process by acting as an electrolyte, promoting the flow of ions. Acidic environments can also increase the rate of rust formation. However, moisture is the primary component required for the initial oxidation process to take place.

Therefore, the correct answer is B) moisture, as it is the essential component in the formation of rust.

to learn more about rust click here:

brainly.com/question/22559905

#SPJ11

we know that people tend to overuse common resources. this problem can be viewed as an example of

Answers

The problem of overusing common resources is a classic example of the tragedy of the commons. This occurs when individuals or groups use a shared resource without considering the impact on others, leading to depletion or degradation of the resource over time.

In order to address this problem, it is important to promote sustainable use of resources and encourage cooperation and collective action among people who rely on these resources. This may involve implementing regulations, creating incentives for conservation, or fostering community-based resource management practices that prioritize the long-term health and well-being of both people and the environment. This problem of people tending to overuse common resources can be viewed as an example of the "Tragedy of the Commons." This concept highlights the dilemma in which individuals, acting in their self-interest, deplete shared resources, leading to a negative outcome for the whole group.

To know more about resources, visit:

https://brainly.com/question/14289367

#SPJ11

If a food co-packer utilized a product structure, which of the following divisions would most likely appear in its organizational chart?
Choices:
1.a. frozen foods, processed foods, beverages, bulk quantities, produce
2.b. marketing, finance, operations, distribution, human resources
3.c. grocery chains, small businesses, restaurants, residential facilities
4.d. northern, southern, eastern, western, central

Answers

If a food co-packer utilized a product structure, the most likely divisions in its organizational chart would include frozen foods, processed foods, beverages, bulk quantities, and produce. Here option A is the correct answer.

A product structure is an organizational arrangement commonly used by companies that manufacture or co-pack a variety of products across different categories. This type of structure groups employees and resources based on the specific products they handle. In the case of a food co-packer, each division within the organizational chart would be responsible for a specific product category.

Frozen Foods Division: This division would handle all frozen food products, including frozen meals, vegetables, fruits, and desserts.

Processed Foods Division: This division would be responsible for processed food items such as canned goods, packaged snacks, and ready-to-eat meals.

Beverages Division: This division would focus on producing and co-packing various beverages, including soft drinks, juices, bottled water, and energy drinks.

Bulk Quantities Division: This division would specialize in packaging and co-packing bulk quantities of food products, catering to clients who require large volumes for commercial purposes.

Produce Division: This division would deal with fresh produce, including fruits and vegetables, ensuring their proper handling, packaging, and distribution.

To learn more about organizational charts

https://brainly.com/question/28203342

#SPJ4

Other Questions
a simple pendulum with a length of 2.23 m and a mass of 6.69 kg is given an initial speed of 2.96 m/s at its equilibrium position. Assume that it undergoes simple harmonic motion and determine itsperiod,total energy, and maximum angular displacement. which group is most likely to play sports like football, soccer, volleyball, and basketball? group of answer choices a. middle class individuals b. people of color c. native speakers d. lower class individuals e upper class individuals which 1940s mgm musical features an appearance from jerry the mouse of "tom and jerry" fame? college professor never finishes his lecture before the end of the hour and always finishes his lectures within 2 min after the hour. Let X = the time that elapses between the end of the hour and the end of the lecture and suppose the pdf of X is as follows.f(x) = kx^2 0 ? x ? 2(a) Find the value of k. (Enter your answer to three decimal places.)(b) What is the probability that the lecture ends within 1 min of the end of the hour? (Enter your answer to three decimal places.)(c) What is the probability that the lecture continues beyond the hour for between 15 and 45 sec? (Round your answer to four decimal places.)(d) What is the probability that the lecture continues for at least 75 sec beyond the end of the hour? (Round your answer to four decimal places.) multiple choice qu 9-23 (static) part j [lo 9-6]j. in attributes sampling, what effect does a decrease in the tolerable deviation rate have on sample size? .Because of the emerging demand, Amazon decided to start new warehouses in the Gulf Coast. Based on their studies, four potential locations for warehouses have been identified, each of which having a specific capacity and also a specific average cost-per-unit for shipping to any of the five Gulf Coast states. The capacity of each warehouse and its operating cost, in addition to the average cost-per-unit for shipping a product to any of the states are given in the following table.TXLAMSALFLOps CostCapacityWH1$2.00$4.00$3.00$2.50$1.50$10,00014,000WH2$3.00$2.50$3.75$2.00$1.75$8,00018,000WH3$2.75$2.00$3.25$3.00$4.00$7,00016,500WH4$1.25$1.75$4.00$3.50$3.00$12,00016,000The average demand for each of the states is given in this table.TXLAMSALFLDemand8,000 units3,500 units4,000 units2,000 units7,000 unitsQuestion: Build a model in Excel and use Solver to find which warehouses should Amazon operate to meet demand in the most cost-effective manner. In addition, based on the designed model, have to come out the LP math formula to explain the design. An action is morally correct when it creates the least amount of harm for the _______ people. find the mean, median, and mode of the data with and without the outlier. $45,\ 52,\ 17,\ 63,\ 57,\ 42,\ 54,\ 58$ put responses in the correct input to answer the question. select a response, navigate to the desired input and insert the response. responses can be selected and inserted using the space bar, enter key, left mouse button or touchpad. responses can also be moved by dragging with a mouse. with outlier without outlier mean response area median response area mode response area response area a control structure alters the normal sequential flow of execution in a program.a. trueb. false another common name for a web beacon is a ____________, which tracks user activities. use spherical coordinates to evaluate zdv, where e is the solid that lies above the cone theta = pi/3 and below the sphere x^2 y^2 z^2 =4z which of the following characteristics is not influenced by genes with multiple alleles? the cash budget should be broken down into time periods that are as long as feasible. group startstrue or false Calculate the de Broglie wavelength for a proton moving with a speed of 7 x 10^6 m/s. The mass of a proton is 1.67262 x 10^-27 kg and Planck's constant is 6.62607 10^-34 Js. the result of (3.8621 1.5630) 5.98 is properly written as which total dollar amount would an an insurance plan pay toward the cost of dental care over a specific period? Los resultados de la investigacin cuantitativa deben serconsistentes al ser reproducidos si se aplica la mismametodologa, con esto entendemos que son c++ Given two integers as user inputs that represent the number of drinks to buy and the number of bottles to restock, create a VendingMachine object that performs the following operations: Purchases input number of drinks Restocks input number of bottles Reports inventory Review the definition of "VendingMachine.cpp" by clicking on the orange arrow. A VendingMachine's initial inventory is 20 drinks. Ex: If the input is: 5 2 the output is: Inventory: 17 bottles#include #include "VendingMachine.h"using namespace std;class VendingMachine {public:int initial = 20;};int main() {VendingMachine myMachine;int purchase, restock;coutpurchase;coutrestock;myMachine.initial-=(purchase-restock);cout put the following in the correct order. - ligase - helicase - gyrase - primase - dna polymerase The area of parallelogram is 36 square meters. If the height is 4 meters, what is the length of the base