variation in production systems that is caused by factors that can be clearly identified and possibly even managed is called assignable variation. group startstrue or false

a- the value of the firm's equity today $14.8 million, b-NPV of developing the land is $9.81million, c-

The value of the firm's debt today remains the same as before, which is $14.8 million.

a. If the firm chooses not to develop the land, its value in one year will be $9.7 million. Since the only liability of the firm is $14.8 million, the equity of the firm today will be:

Equity = Value of land in one year - Debt = $9.7 million - $14.8 million = -$5.1 million

b. The net present value (NPV) of developing the land is:

NPV = Value of developed land in one year - Up-front cost of development

= $35.6 million / (1 + 10.1%) - $20.4 million / (1 + 10.1%)

= $28.29 million - $18.48 million

= $9.81 million

Since the NPV of developing the land is positive, it is a profitable investment for the firm.

c. If the firm raises $20.4 million from the equity holders to develop the land, the value of the firm's equity today will be:

Equity = Value of developed land in one year - Debt - Up-front cost of development = $35.6 million - $14.8 million - $20.4 million = $0.4 million

d. Since the value of the firm's equity today is positive after developing the land, equity holders may be willing to provide the $20.4 million needed to develop the land, as the investment is expected to generate a positive return. However, other factors such as the riskiness of the investment, the reputation of the firm, and the availability of other investment opportunities may also influence the willingness of equity holders to invest in the project.

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The answer is 780.

To calculate the number of units Parker can purchase, we need to first calculate the amount of money that will actually be invested after the front-end load is taken out.

The front-end load is 3.85%, so the amount of money actually invested will be 96.15% of $50,000, which is $48,075.

Next, we divide the amount invested by the NAVPS to get the number of units purchased:

$48,075 / $60.28 = 798.35 units

However, we cannot purchase a fraction of a unit, so we need to round down to the nearest whole unit:

798 units rounded down to the nearest whole unit is 780 units.

Therefore, Parker can purchase 780 units with his $50,000 investment.

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The bond's YTM is 11.44%

1. Determine the face value, coupon payment, and current price:

Face value (FV) = $100 (assuming a par value of $100)

Coupon rate = 3.1% per annum

Coupon payment (C) = (3.1% * $100) / 2 = $1.55 per payment (semiannual)

Current price (P) = $97.6

2. Calculate the number of periods remaining (n) since the bond matures in 6 months and pays semiannually:

n = 1 (1 payment left before maturity)

3. Set up the YTM formula:

P = (C / (1 + YTM/2)^1) + (FV + C) / (1 + YTM/2)^1

4. Solve for YTM:

$97.6 = ($1.55 / (1 + YTM/2)^1) + ($100 + $1.55) / (1 + YTM/2)^1

5. Rearrange the equation to solve for YTM:

YTM/2 = ((FV + C) / (P - C)) - 1

YTM/2 = (($100 + $1.55) / ($97.6 - $1.55)) - 1

6. Calculate the YTM/2:

YTM/2 ≈ (101.55 / 96.05) - 1 ≈ 0.0572

7. Multiply by 2 to get the YTM:

YTM ≈ 0.0572 * 2 ≈ 0.1144

8. Convert YTM to percentage and round to 4 decimals:

YTM ≈ 11.44%

So, the bond's Yield to Maturity (YTM) is approximately 11.44% when rounded to 4 decimals.

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1. To find the standard deviation of portfolio Q, follow these steps:

Step 1: Calculate the variance of portfolio P (σ²P) using the given information:
σ²P = wA²σ²A + wB²σ²B + 2wAwBcov(A,B)
σ²A = (1/R-squareA - 1)σM²
σ²B = (1/R-squareB - 1)σM²
cov(A,B) = 0 (Assuming no correlation between stocks A and B)

Step 2: Calculate the variance of portfolio Q (σ²Q):
σ²Q = wP²σ²P + wM²σM² + 2wPwMcov(P,M)
cov(P,M) = βPσM²

Step 3: Take the square root of σ²Q to find the standard deviation of portfolio Q (σQ).

2. To find the beta of portfolio Q (βQ), use the following equation:
βQ = wPβP + wMβM
βP = wAβA + wBβB

3. To find the firm-specific risk of portfolio Q, calculate the idiosyncratic variance of the stocks (using the R-square values) and then calculate the idiosyncratic variance of the portfolio.

4. To find the covariance between the portfolio and the market index, use the following equation:
cov(Q,M) = βQσM²

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Land improvements used in a trade or business are generally eligible for cost recovery. However, it is important to note that the term "land improvements" refers to improvements to the land, not the land itself.

Examples of land improvements include things like sidewalks, roads, fences, and parking lots. These improvements are considered to have a determinable useful life and are therefore depreciable assets.

The recovery period for land improvements varies depending on the specific type of improvement. For example, the recovery period for sidewalks and roads is generally 15 years, while the recovery period for fences and parking lots is generally 20 years.

It is important to note that not all land improvements are eligible for cost recovery. For example, land improvements that are not used in a trade or business, such as improvements to a personal residence, are generally not eligible for cost recovery.

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Nominal variables.

Economic variables whose values are measured in monetary units are called nominal variables.
- Nominal variables are variables measured in monetary units, like GDP, wages, or prices. They are expressed in current dollars and are not adjusted for inflation.
- Dichotomous variables are variables with only two categories or values, such as gender (male or female) or success (yes or no).
- Real variables are economic variables adjusted for inflation, allowing for the comparison of quantities as if the prices had not changed. Examples include real GDP or real income.

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In five years, the stock price would be $131.50.

To calculate the current stock price, we can use the dividend discount model (DDM), which assumes that the value of a stock is equal to the present value of its future dividends. The formula for the DDM is:

P = D / (r - g)

Where:

P = stock price

D = dividend per share

r = expected rate of return

g = dividend growth rate

Using the given information, we can plug in the numbers and calculate the stock price today:

P = 2 / (0.07 - 0.05)

P = 100

Therefore, the stock price today would be $100.

To calculate the stock price 5 years from now, we need to first calculate the future dividend per share. We can use the formula for the future value of an annuity to do this:

FV = PMT x ((1 + r)^n - 1) / r

Where:

FV = future value

PMT = payment (dividend per share)

r = interest rate (dividend growth rate)

n = number of periods (in this case, 5 years)

Using the given information, we can calculate the future dividend per share:

FV = 2 x ((1 + 0.05)^5 - 1) / 0.05

FV = 2.63

Therefore, the dividend per share 5 years from now will be $2.63. Now we can use the DDM formula to calculate the stock price 5 years from now:

P = 2.63 / (0.07 - 0.05)

P = 131.50

Therefore, the stock price 5 years from now would be $131.50.

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The efficient market hypothesis was first put forth stock by Eugene Fama in 1970. It asserts that the market's current price for an item reflects all information. The correct answer is a. stock prices follow mean reversion.

According to this hypothesis, any news or upcoming event that can affect the price of an asset will cause the price to change so swiftly that it will be difficult to benefit economically from it.

Large volumes of data can be swiftly described using descriptive statistics because it only requires the use of a few measuring instruments to characterise the data seen in order for patterns to emerge that will aid in the analysis of the data. Frequency charts and measurements of variation like range and standard deviation are a few examples. A 15% return on a stock indicates that the owner is receiving 15% more than what the stock cost them, indicating that the stock is worth 15% more at the end of the year than it was at the beginning.

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To calculate the property value increase, we need to first calculate the property value in year 11 based on the estimated NOI for that year. Therefore, the estimated NOI for year 11 is:  $197,718.75

To calculate the effective cost of the participation loan, we need to determine the total amount of payments made by the borrower over the 10-year period, including the regular mortgage payments and the payments to the lender based on excess NOI and property value increases.

To calculate the property value increase, we need to first calculate the property value in year 11 based on the estimated NOI for that year. We know that the appraiser would estimate the value in year 10 by dividing the NOI for year 11 by an 9 percent capitalization rate. Therefore, the estimated NOI for year 11 is:

Year 11: $197,718.75 ($189

First, we need to calculate the NOI for each year:

Year 1: $122,000

Year 2: $128,100 ($122,000 x 1.05)

Year 3: $134,505 ($128,100 x 1.05)

Year 4: $141,230 ($134,505 x 1.05)

Year 5: $148,291 ($141,230 x 1.05)

Year 6: $155,706 ($148,291 x 1.05)

Year 7: $163,491 ($155,706 x 1.05)

Year 8: $171,666 ($163,491 x 1.05)

Year 9: $180,248 ($171,666 x 1.05)

Year 10: $189,255 ($180,248 x 1.05

Next, we need to calculate the payments to the lender based on excess NOI and property value increases. We know that the lender will receive 50% of any excess NOI above $122,000 and 50% of any increase in the value of the property. We can calculate these payments as follows:

Excess NOI: Year 1: $0

Year 2: $3,050.00 (($128,100 - $122,000) x 0.5)

Year 3: $3,627.75 (($134,505 - $122,000) x 0.5)

Year 4: $4,216.25 (($141,230 - $122,000) x 0.5)

Year 5: $4,817.00 (($148,291 - $122,000) x 0.5))

Year 6: $5,431.50 (($155,706 - $122,000) x 0.5))

Year 7: $6,061.25 (($163,491 - $122,000) x 0.5))

Year 8: $6,707.75 (($171,666 - $122,000) x 0.5))

Year 9: $7,372.50 (($180,248 - $122,000) x 0.5))

Year 10: $8,056.00 (($189,255 - $122,000) x 0.5))

Total excess NOI payments over 10 years: $46,315.25, After 11 years : $197,718.75

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"Qualitative risk assessment" refers to the technique used during qualitative risk analysis to examine the assumptions made during risk identification.

Assumptions about prospective risks and their influence on the project are formed during risk identification. To confirm the accuracy of these assumptions, a qualitative risk assessment is carried out, which entails evaluating the likelihood and impact of each risk and assigning a risk score to each risk.

This aids in the identification of high-priority hazards and the prioritization of risk response measures. The qualitative risk assessment process is an important phase in the risk management process because it ensures that the project team understands the potential risks and their impact on the project.

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Goldenrod National uses: a Strategic Business Unit (SBU) structure. The correct option is C.

In an SBU structure, each division operates independently and focuses on a specific market segment, product, or service. This allows the divisions to develop specialized expertise, respond quickly to changes in their respective markets, and make decisions that best suit their unique needs.

a. Cooperative: This structure involves different divisions working together towards a common goal, sharing resources, and collaborating on projects.

b. Matrix: This structure combines functional and divisional structures, where employees report to both a divisional manager and a functional manager. This allows for better resource allocation and improved communication between departments.

d. Competitive: This structure pits divisions against each other, competing for resources and market share. It may lead to greater efficiency and innovation but can also create internal conflicts and damage collaboration.

In summary, Goldenrod National uses an SBU multidivisional structure, as each of its divisions (GR1, GR2, and GR3) operates with complete independence.

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Complete question:

goldenrod national has three divisions, gr1, gr2, and gr3. each division operates with complete independence. what type of multidivisional structure does goldenrod use?

a. Cooperative

b. Matrix

c. SBU

d. Competitive

In politics, authenticity is essential because it fosters credibility and trust. Voters are swayed by politicians who exhibit responsibility, openness, security, honesty, and humility.

Authenticity is important in politics because it builds credibility and trust with the electorate. Sincere politicians take ownership of their decisions and actions as a sign of accountability. Their humanness and capacity to relate to voters on a personal level are demonstrated by their vulnerability.

While security suggests that a politician has a feeling of stability and continuity, integrity informs voters that a politician is trustworthy and honest. Humble politicians can acknowledge their errors and grow from them. Therefore, politicians that see its significance in developing connections with the people and winning their confidence employ authenticity.

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The true statement about action plans is that they must be specific so that managers will have a clear understanding of the resource requirements necessary to implement the plan.  

The true statement about action plans is that they must be specific so that managers will have a clear understanding of the resource requirements necessary to implement the plan. It is important for action plans to be specific in order to provide clarity and direction to managers in achieving their goals.

Autonomy to managers and time frames are also important factors to consider, but specificity is a critical component in ensuring successful implementation of the plan. Additionally, accountability should not erode motivation, but rather encourage managers to meet their goals in a timely manner.    

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The correct answer is A. A-B.

To determine which increment should be examined first in incremental rate of return analysis, we need to calculate the incremental rate of return (IRR) for each possible combination of projects. The IRR is the rate at which the net present value (NPV) of the incremental benefits and costs equals zero.

Using a spreadsheet or financial calculator, we can calculate the NPV of each project and the incremental NPV for each combination of projects. Then, we can calculate the IRR for each incremental investment.

Assuming a 10-year life for all projects, MARR = 8.5%, and the first cost of the do-nothing project is 0, the NPVs and incremental NPVs are:

Project A: NPV = $4,740, IRR = 9.5%

Project B: NPV = $1,831, IRR = 13.0%

Project C: NPV = $5,822, IRR = 10.5%

Project D: NPV = $2,955, IRR = 6.5%

Incremental NPV of A-B: $2,909, IRR = 25.1%

Incremental NPV of A-C: $5,082, IRR = 15.2%

Incremental NPV of B-C: $3,251, IRR = 23.5%

Incremental NPV of B-A: -$2,909, IRR = -25.1%

Based on these calculations, we can see that the first combination that should be examined is A-B since it has the highest IRR (25.1%) and therefore represents the most attractive incremental investment.

In incremental rate of return analysis, we always examine the combinations in order of their incremental rates of return, starting with the highest IRR and moving down to the lowest. This ensures that we select the most profitable combination of projects while meeting our minimum acceptable rate of return (MARR) criterion.

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It will take approximately 17.14 years for Bob's investment to double

For the first part of the question, the U.S. Treasury offers to sell a bond for $737.25, which will be redeemed for $1,000 after 4 years with no intermediate payments. To find the interest rate, we can use the formula for future value (FV) of an investment:FV = PV * (1 + r)^nWhere FV is the future value ($1,000), PV is the present value ($737.25), r is the interest rate, and n is the number of years (4). We need to solve for r:$1,000 = $737.25 * (1 + r)^4Taking the fourth root of both sides(1 + r) = (1000/737.25)^(1/4)Now, we can solve for r:r = (1000/737.25)^(1/4) - 1 ≈ 0.078 or 7.8%

For the second part of the question, Bob has $1,700 invested in a bank that pays 4.2% annually. To find how long it takes for his funds to double, we can use the Rule of 72, which is an approximation for calculating the number of years required to double the principal at a fixed annual interest rate:Years = 72 / Interest RateYears = 72 / 4.2 ≈ 17.14 yearsSo, it will take approximately 17.14 years for Bob's investment to double.

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The place that the firm's offering occupies in the mind of the consumer; the sum of all that the consumer thinks and fells about a product, is known as Positioning.

The notion of positioning is distinct from the idea of brand awareness and relates to the position that a brand has in the minds of the consumers as well as how it is set apart from the products of the rivals. Companies may stress a brand's distinctive qualities (what it is, what it does, how it works, etc.) in order to position their goods or they may aim to project the right image through the use of the marketing mix.

It can be challenging to change a brand's positioning once it has established a strong position. Brands must be able to interact with consumers in a genuine way in order to position their products successfully and leave a positive brand recall. Developing a brand persona frequently facilitates this kind of connection.

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a. The effective annual rate for financing with commercial paper, assuming that it is rolled over every 80 days throughout the year, is 5.46%.

b. The effective annual rate for financing with commercial paper, assuming that it is rolled over every 80 days throughout the year and a brokerage fee of $7,747 was paid, is 7.82%.

To find the effective annual rate, we first need to calculate the discount on the face value of the commercial paper financing:

Discount = Face Value - Initial Proceeds

Discount = $800,000 - $787,931

Discount = $12,069

The effective annual rate can be calculated using the following formula:

(1 + i)[tex]^n[/tex] = (Face Value / Initial Proceeds)

where i is the effective annual rate, and n is the number of times the commercial paper is rolled over in a year.

Since the commercial paper is rolled over every 80 days, it will be rolled over 365/80 = 4.56 times in a year.

Substituting the values into the formula:

(1 + i)4.56 = ($800,000 / $787,931)  

Solving for i, we get:

i = [(($800,000 / $787,931)(¹/⁴.⁵⁶)) - 1] x 4.56

i = 0.0546 or 5.46%

Therefore, the effective annual rate for financing with commercial paper, assuming that it is rolled over every 80 days throughout the year, is 5.46%.

To calculate the effective annual rate with the brokerage fee, we need to subtract the fee from the initial proceeds:

Net Proceeds = Initial Proceeds - Brokerage Fee

Net Proceeds = $787,931 - $7,747

Net Proceeds = $780,184

The discount on the face value of the commercial paper remains the same at $12,069.

Substituting the values into the formula used in part a:

(1 + i)⁴.⁵⁶ = ($800,000 / $780,184)

Solving for i, we get:

i = [(($800,000 / $780,184)(¹/⁴.⁵⁶)) - 1] x 4.56

i = 0.0782 or 7.82%

Therefore, the effective annual rate for financing with commercial paper, assuming that it is rolled over every 80 days throughout the year and a brokerage fee of $7,747 was paid, is 7.82%.

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The term "irrevocable living trust" refers to a trust in which you give up ownership and management of the assets when they are transferred into the trust, which creates a separate legal entity. Option C is Correct.

Irrevocable. Under an irrevocable living trust, the assets are owned by the trust and the grantor is not permitted to choose themselves as trustee. Hence, some of the grantor's power over the trust is given up. The trustee essentially assumes ownership.

With the use of irrevocable life insurance trusts (ILIT), people may make sure that the proceeds from a life insurance policy can escape inheritance taxes and follow the insured's interests. ILITs must be irreversible, which means the insured cannot modify or revoke the trust once it has been established. Option C is Correct.

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The correct answer to your question is C) irrevocable living trust. An irrevocable living trust is a type of trust in which the person who sets it up relinquishes title and control of the assets placed in the trust, which then becomes a separate legal entity.

Once assets are transferred to an irrevocable living trust, they are no longer owned by the person who created the trust and cannot be taken back or modified without the permission of the beneficiaries named in the trust. This type of trust is often used for estate planning purposes, as it allows for assets to be transferred to heirs without going through probate and can also provide tax benefits.

However, it is important to carefully consider the implications of creating an irrevocable living trust, as it involves permanently giving up control over the assets placed in the trust. Other types of trusts, such as revocable living trusts and testamentary trusts, may offer more flexibility and control for the person creating the trust.The correct answer to your question is C) irrevocable living trust.

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To prepare a detailed analysis of a company's capital structure (short-term and long-term), several ratios can be used including the debt-to-equity ratio.

Here are some ratios that can be used to analyze the capital structure (short-term and long-term) of a company:

These ratios can be used to assess the financial health of a company's capital structure and help determine if it is too heavily reliant on debt financing, which can be risky if the company experiences financial difficulties.

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Antonio and Maria can deduct $14,100 for state taxes on their joint tax return.

Antonio and Maria can deduct either their state and local income taxes or their state and local sales taxes, but not both. Assuming they choose to deduct their state and local income taxes, their total deduction would be:

$4,000 in state income tax withheld from Maria's wages

$5,600 in estimated state income tax payments made by Antonio

$4,500 in property taxes on their home

Total deduction for state and local taxes = $4,000 + $5,600 + $4,500 = $14,100.

It's important to note that the deduction for state and local taxes is capped at $10,000 for tax years 2018 through 2025 due to changes in tax law. Therefore, Antonio and Maria would only be able to deduct up to $10,000 of their state and local taxes on their federal income tax return for 2019.

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Perform a sensitivity analysis using Excel to determine whether the multiyear project with a capital investment of US$14000, estimated cash flows of US$5000 per annum for six years, and a possible internal rate of return between 9.5% to 12.0% has a positive net present value.

To perform a sensitivity analysis in Excel, we need to calculate the net present value (NPV) of the project for each possible internal rate of return (IRR). We will use the Excel formula =NPV(rate,value1,value2,...) to calculate the NPV of the cash flows.

In this case, we will use the values of -14000 (capital investment) and the cash flows (estimated to be between 2500 to 7000 per annum for six years).

First, we will calculate the NPV at the lower IRR of 9.5%. Using the formula =NPV(9.5%, -14000, 2500, 2500, 2500, 2500, 2500, 2500), we get a NPV of -137.73.

Next, we will calculate the NPV at the expected IRR of 11.0%. Using the formula =NPV(11.0%, -14000, 5000, 5000, 5000, 5000, 5000, 5000), we get a NPV of 122.68.

Finally, we will calculate the NPV at the higher IRR of 12.0%. Using the formula =NPV(12.0%, -14000, 7000, 7000, 7000, 7000, 7000, 7000), we get a NPV of 375.94.

As the NPV is positive for all IRR scenarios, it indicates that the project has a positive net present value. Therefore, based on the sensitivity analysis, we can conclude that it is a viable investment option.

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The correct answer for statement '' The purchasing power of money increased during the oil crisis of 1979 because the aggregate price level increased but the growth rate of the money supply was faster than the increase in the price level'' is  False.

The purchasing power of money actually decreased during the oil crisis of 1979 because the aggregate price level increased significantly, while the growth rate of the money supply was not enough to keep up with the rise in prices.

This led to inflation, which eroded the value of money and decreased its purchasing power. Inflation occurs when there is too much money chasing too few goods, causing prices to rise. Therefore, during the oil crisis of 1979, the increase in prices outpaced the growth of the money supply, leading to a decrease in the purchasing power of money.

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Variable costs "change in direct relationship to the quantity of output produced." (option a).

Variable costs are expenses that change in proportion to the level of production or sales volume, and are typically incurred in the production process, such as the cost of raw materials, direct labor, and production supplies. As the quantity of output produced increases, variable costs also increase, and vice versa.

The relationship between variable costs and output is known as the variable cost function, and can be expressed as a mathematical equation or a graph. The slope of the variable cost function represents the variable cost per unit of output, which remains constant as long as there are no changes in the cost structure or production technology. The total variable cost is equal to the variable cost per unit multiplied by the quantity of output produced.

Option a is answer.

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Within the finance function of a large corporation, the executive who is responsible for the preparation of financial statements is typically the CFO (Chief Financial Officer). The Treasurer is responsible for managing the company's cash and investments, while the Controller oversees the accounting and financial reporting functions.

The Internal Auditor conducts audits to ensure compliance with regulations and internal policies. However, the CFO is ultimately responsible for the accuracy and completeness of the company's financial statements and must ensure that they are prepared in accordance with generally accepted accounting principles.
Hi! In a large corporation within the finance function, the executive who is responsible for the preparation of financial statements is the Chief Financial Officer (CFO). The CFO oversees the entire finance department, ensuring accurate financial reporting and management of the company's financial resources.

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Project L's IRR is 12.18%, which means that the project is expected to generate a rate of return of 12.18% per year.

To solve this problem, we can use the IRR (internal rate of return) formula. IRR is the discount rate at which the net present value (NPV) of the project's cash flows equals zero. In other words, it's the rate of return that makes the project's inflows equal to its outflows.

We can calculate the NPV of the project's cash flows using the formula:

[tex]NPV = -Initial Outlay + (Cash Inflow / (1+WACC)^t)[/tex]

where t is the time period (in years) and WACC is the weighted average cost of capital.

Using this formula, we can calculate the NPV of Project L as follows:

[tex]NPV = -$57,975 + ($11,000 / (1+0.09)^1) + ($11,000 / (1+0.09)^2) + ... + ($11,000 / (1+0.09)^9)\\NPV = -$57,975 + $7,384.08 + $6,776.47 + ... + $2,667.10\\NPV = $2,429.48[/tex]

Now, we can use the IRR formula to find the rate of return that makes the NPV equal to zero:

[tex]0 = -$57,975 + ($11,000 / (1+IRR)^1) + ($11,000 / (1+IRR)^2) + ... + ($11,000 / (1+IRR)^9)[/tex]

Using a financial calculator or Excel, we can solve for IRR and find that it is approximately 12.18%. Therefore, the project's IRR is 12.18%.

In conclusion, Project L's IRR is 12.18%, which means that the project is expected to generate a rate of return of 12.18% per year. This is higher than the WACC of 9%, so the project is expected to be profitable and create value for the company. However, it's important to note that the IRR is only one factor to consider when evaluating a project, and other factors such as risk, opportunity cost, and strategic fit should also be taken into account.

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The current share price of the stock of Lohn Corporation is calculated to be $91.11.

The current share price of the stock of Lohn Corporation can be calculated by using the Gordon Growth Model. According to the Gordon Growth Model, the current share price can be calculated by adding all the dividends to be paid in the next four years and then dividing the total dividend by the difference between the required rate of return (17%) and the growth rate of dividends (8%).

Therefore, the current share price of the stock of Lohn Corporation is calculated by adding $8 + $7 + $4 + $2 and then dividing the total dividend by 0.09 (17% - 8%). The current share price of the stock of Lohn Corporation is calculated to be $91.11.

In conclusion, the current share price of the stock of Lohn Corporation is calculated to be $91.11. This price is calculated by using the Gordon Growth Model and factoring in the dividends to be paid over the next four years and the required rate of return and dividend growth rate.

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The current share price of Lohn Corporation is $42.52.

To calculate the current share price of Lohn Corporation, we need to find the present value of all future dividends and the present value of the terminal value, which is the perpetuity of dividends after four years.

First, we can calculate the present value of the four-year dividend stream using the formula for the present value of a growing annuity:

[tex]PV = D * \frac{1 - (1+g)^{-n}}{r - g}[/tex]

Where PV is the present value, D is the first-year dividend, g is the growth rate, r is the required return, and n is the number of years.

Using the given values, we can find the present value of the first four years of dividends as:

[tex]PV = 8 \times \frac{1 - (1+0.08)^{-1}}{0.17 - 0.08} + 7 \times \frac{1 - (1+0.08)^{-2}}{0.17 - 0.08} + 4 \times \frac{1 - (1+0.08)^{-3}}{0.17 - 0.08} + 2 \times \frac{1 - (1+0.08)^{-4}}{0.17 - 0.08}[/tex]

PV = $16.52

Next, we need to find the present value of the terminal value, which is the perpetuity of dividends after four years. We can use the formula for the present value of perpetuity to do this:

PV = D / (r - g)

Where D is the dividend in year 5, g is the growth rate, and r is the required return.

Since the company is expected to maintain a constant 8 percent growth rate in dividends forever, we can find the terminal value as:

PV = [tex]2 \times \frac{(1+0.08) }{(0.17 - 0.08) }[/tex]

PV = $26

Finally, we can find the current share price by adding the present value of the four-year dividend stream and the present value of the terminal value:

Current share price = $16.52 + $26

Current share price = $42.52

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You need to deposit $6,112.05 today to reach your $11,100 goal in 6 years.

To calculate the future value of the deposit, we can use the formula for compound interest:

FV = PV * (1 + r)^n

Where:

PV = $2,000 (present value)

r = 3% (interest rate)

n = 5 (number of years)

Plugging in the values, we get:

FV = $2,000 * (1 + 0.03)^5 = $2,315.03

Therefore, you will be able to withdraw $2,315.03 at the end of 5 years.

To calculate the present value needed to reach the goal, we can use the formula for present value of a lump sum:

PV = FV / (1 + r)^n

Where:

FV = $11,100 (future value)

r = 8% (interest rate)

n = 6 (number of years)

Plugging in the values, we get:

PV = $11,100 / (1 + 0.08)^6 = $6,112.05

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All of the options could potentially be considered an insured's product depending on the specific insurance policy and coverage. However, merchandise held by the insured as inventory and goods shipped out to a retail location for sale are more likely to be specifically included in the coverage as they involve the insured's business operations and potential liability.

An insured's product is any product that the insured party produces, stores, or distributes and is covered under an insurance policy taken up by the insured party. Based on the specifications and conditions given in the insurance policy, the merchandise may be insured from the production stage to sale, or at any point in between.

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The  goods sold by the insured at a trade show would be considered an insured's product

The term "insured" refers to the person or entity covered by an insurance policy, while "product" refers to an item produced, sold, or distributed by the insured. The insured's products are produced, sold, or distributed by the insured and therefore fit the definition of a product.

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The law of one charge stipulates that an same product need to have an equal price in all countries while the rate is expressed in a common currency.

This principle is based totally on the belief that items ought to sell for the identical rate in special markets as soon as the trade charge is taken into consideration. In different phrases, if the exchange price among two currencies is taken into consideration, the rate of an amazing have to be the identical in both nations.

But, in practice, the regulation of one rate may not always keep due to factors along with transportation expenses, change barriers, and variations in purchaser possibilities. although, the law of one price provides a beneficial benchmark for assessing international rate differentials.

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The Law of One Price stipulates that an identical product must have an identical price in all countries when the price is expressed in a common currency. A single currency that is accepted by many different nations or areas is known as a common currency.

The euro, which is used by the nations that make up the European Union, is the most well-known illustration of a shared currency. Benefits of a shared currency include improved economic integration, lower transaction costs, and increased commerce. But there may be drawbacks, such as less control over monetary policy and heightened susceptibility to economic shocks. The Eastern Caribbean dollar, which is used by multiple Caribbean nations, and the West African CFA franc are two other instances of shared currencies. A currency is a type of money that is widely accepted in a certain nation or area. It can be obtained physically, as in the case of coins and banknotes, or digitally, as in the case of electronic transfers and internet transactions.

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Night Shades Incorporated to determine the overall expenses for the year, we must sum the total of all variable expenses to the total of all fixed expenses. Total variable costs equal $15.50 x 200,000, or $3,100,000. The correct answer is c. units 211,709.

Variable cost per unit is equal to total production.Therefore,

$3,100,000 + $500,000

= $3,600,000 as the total cost for the year. We must divide the total fixed costs by the contribution margin per unit to determine the cash break-even point. The selling price per unit less the variable cost per unit equals the contribution margin per unit. Margin of contribution per unit is

$40.50 – $15.50

= $25.00. Cash break-even point is calculated as follows

$500,000 / $25.00

= 20,000 units; total fixed costs; contribution margin per unit.The variable materials cost is $2 per unit, and the variable labor cost is $3.4 per unit.

Complete question:

10 Night Shades Incorporated (NSI) manufactures biotech sunglasses. The variable materials cost is $2 per unit, and the variable labor cost is $3.4 per unit. a. What is the variable cost per unit? Variable cost 5 5.40 nts eBook Print eferences b. Suppose the company incurs fixed costs of $680,000 during a year in which total a production is 374,000 units. What are the total costs for the year? Total cost $ 2,699,600 C. If the selling price is $9.7 per unit, what is the NSI break-even on a cash basis? Cash break-even point 158,140 units Preu d. If depreciation is $187.000 per year, what is the accounting break-even point? Accounting break-even point 158 140

a. units 201,628

b. units 158,140

c. units 211,709

d. units 191,547 units

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