Are you agree with the phrase(sentence): "In the following case. a risk aversion person will not prefer project B to project A at all"? explain why? - Project A 100 25 ENPV 6 Project B 130 30

Q: 1. Mala Inse Co. is evaluating the purchase of a P500,000 machine. The cash inflow from the…

A: Factor Value  =   Cash Outflow  / Cash Inflow Factor Value  =  500,000 / 145,000 Factor Value  =…

Q: With an annual inflation rate of 1.57%, how much did an item that now costs $5700 cost 4 years…

A: Inflation rate is 1.57% Current Cost of Item is $5700 Time period is 4 years To Find: Cost of an…

Q: You are looking at two investment options, A and B. Investment A is a 13-year annuity that needs an…

A: Compounding: Compounding is the method through which interest is added to both the principle balance…

Q: Delta Games Private Limited is a digital gaming company creating fun-to-play games for millenials.…

A: Seed funding is the first equity that a company raises for its functioning. A Series-A investment is…

Q: Find the future value of the following ordinary annuities. Payments are made and interest is…

A: Given, The payments $4000 Interest rate is 10% Term is 20 years

Q: firm a recieves an average of 1000 checks a day. the average check amount is 400. the collection…

A: A lockbox system is an arrangement in which a bank-operated mailing address is provided by banks to…

Q: In an efficient market, a one-year call option on stock S with K = $25 is traded at $7.06, the…

A: Options:  Options come in two varieties: calls and puts. Options of the American variety may be…

Q: Eton Company is analysing a proposed project. It expects to sell 150 units, give or take 4%. The…

A: Having an optimistic outlook entails focusing on the good in situations. It is also an optimistic…

Q: What type of variable is the New York stock exchange

A: Variable- It can be referred to as any measured characteristics or attributes that are different…

Q: roblem 1. Mala Inse Corporation is contemplating to buy P2,000,000 par value bonds at an effective…

A: Price of bond is the present value of coupon payment and present value of bond taken on the yield to…

Q: berto opened a savings account for his daughter and Dosited $800 on the day she was born. Each year…

A: The future value of the annuity includes the amount being deposited and amount of compounded…

Q: Why did the analysts add back stock expenses to get to free cash flows?

A: Stock Compensation: It is a method used by companies to motivate employees by paying them with…

Q: Notes: a. The firm has an 8-year financial lease requiring annual beginning-of-year payments of…

A: Vertical analysis : Under this system, each item in the financial statement  is shown in the…

Q: Galina Works trades regularly with customers in different countries. Its home currency is the…

A: There are multiple sub parts. First three sub parts have been answered. This is a question on…

Q: Cash  2,000,000  Accounts Payable and Accruals  18,000,000  Accounts Receivable  28,000,000…

A: Weighted average cost of capital will be the weighted cost of debt, weighted cost of equity and…

Q: What are the four P's of effective software project management?

A: The four P's of effective software product management are: 1. Product 2. People 3. Process 4.Project…

Q: A company is being investigated by the Securitites Exchange Commission (SEC). The chief executive…

A: Authority bias

Q: Suppose a firm uses a constant WACC in determining the value of capital budgeting  projects rather…

A: WACC is the weighted average return that a company pays over all its assets. The WACC of a company…

Q: Describe the economic importance of Multi-national Corporations (MNC) with specific reference to the…

A: MNCs are those companies that has its business operations not limited just to its home country.…

Q: Mr. X established the following spread on the Delta Corporati (1) Purchased one 3-month call option…

A: A call option is a contract between a buyer and a seller to purchase a certain stock at a certain…

Q: What are the implications of interest rate parity theorem.

A: Interest rate Parity:- The interest rate parity (IRP) theory states that the difference between the…

Q: QUESTION B1 An investor is holding a portfolio which comprises £4 million of Bond A and £6 million…

A: Note:  Parts a and b have been solved below.

Q: You were offered to buy shares of stock of a newly listed company. You decided to take 300 shares at…

A: Using a Future value formula we can determine the time it takes to double the initial amount when…

Q: How many months does it take to pay off the card, and what is the total amount paid including…

A: APR is the annual interest rate. It's like the annual fee for your borrowing. exist In other words,…

Q: Although the company does not have an option to delay construction, it does have the option to…

A: Given, The expected price is $7 million Cost of capital is 12%

Q: Draw a cash flow diagram

A: Cash flows in different periods are not comparable; therefore, we use the concept of time value of…

Q: explain your solution Operating margin Market Ratio Operating income Current Ratio = Ravenue 6957873…

A: Ratio analysis is a quantitative method to know the liquidity, operational efficiency, and…

Q: Consider the following information:     Cash Flows ($) Project C0 C1 C2 C3 C4 A –5,300 1,300 1,300…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Answer the following questions by including the appropriate cash flow diagrams, solution, and final…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Dividend Policy The following represents the stockholder's equity account of Security Data Company:…

A: Given, preferred stock R200,000 Common stock R200,000

Q: The two main approaches to equity analysis are the relative valuation models and… a. The discounted…

A: Stock valuation is very useful to ascertain whether the stock is trading at premium or discount.…

Q: The risk-free rate is 4% and the expected market return is 10%. A stock with a  beta of 0.9 is…

A: The dividend discount model says that fair value or intrinsic value of a stock today is the present…

Q: Refer to Table 10-6. Price quotes are stated in 1/64ths. a. How many Exxon Mobil June 2020 $40 put…

A: The open interest: The open interest in a derivative quote chart refers to the number of outstanding…

Q: What are the expected return, risk premium., standard deviation, and ratio of risk premium to…

A: Information Provided: y = 0.60 (Weight of risky asset) Rf (Risk free rate) = 2% Rp (Return on risky…

Q: 3. Please, explain (with an example for each) ... a real world situation, where Future Value and…

A: Present value : It is the current value of future  cash flows i.e., how much the future sum of money…

Q: Estimate the equation of the efficiency frontier.

A: An efficient portfolio offers either the lowest risk for a given expected return or the highest…

Q: The income tax T owed in a certain state is a function of the taxable income I, both measured in…

A: Given , The equation of tax is as follows: T=0.13I-300…

Q: Stufful Corporation currently manufactures a subassembly for its main product. The costs per unit…

A: Whenever business has more than one alternative, it should choose that alternative which has maximum…

Q: Mosaic is evaluating a manufacturing plant that has the potential to generate revenue of $2…

A: Given: Particulars Amount in Millions Stock price $2 Up price % 20.00% Lower price % 25.00%…

Q: The stock price of Heavy Machine (HM) changes only once a month: Either it goes up  by 20% or it…

A: Call option is one of the form of future contracts. Under this, agreement is being made for…

Q: Anirudh Corporation has the following capital structure as at December 31, 20x3: Convertible bonds,…

A: Basic and Diluted EPS: The net income of a company represents the earnings that belong to the…

Q: assume you purchased a house on january 1, 2020 for $200,000. you had made a down payment of 20% on…

A: Loans are paid by the monthly payments and these payments carry the payment for interest and payment…

Q: Find the compound amount and the amount of interest earned by the following deposit. $5,000 at 7.59%…

A: A=P* (e)^rt A = Amount of money after a certain amount of time P = Principle or the amount of money…

Q: You deposit $7,000 into an account earning interest at a 7% APR.  You keep the money in the account…

A: Initial deposit = $7,000 Interest rate = 0.07 or 7% Period = 5 years Money in account at the end of…

Q: You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is…

A: Value of Most Expensive Car that could be afforded = Down payment + Present Value of Annuity…

Q: A woman deposits $10,000 at the end of each year for 14 years in an account paying 7% interest…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: For a three year bond of $2,600 at a simple interest rate of 11% per year, find the semiannual…

A: Value of Bond is $2,600 Time period of bond is three years Simple interest rate is 11% To Find:…

Q: Consider the following information:     Cash Flows ($) Project C0 C1 C2 C3 C4 A –5,300 1,300 1,300…

A: Several projects have been given. We have to find their payback period. Payback period is the time…

Q: a) Bond has a face value of ₡3000 and pays coupon of 12% per annum for 4 years, if the  market…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: 7 A company operating in Japan has today effected sales to an Indian company, the payment being due…

A: Workings shown in step 2 Final answer  You saved 0.6 Lakkhs (3.33-2.73)Through headging

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.