How did you get the 0.1212 or 12.12% value from this problem?

Q: Suppose that demand is given by the equation: P = 10 - 0.2QD and supply is given by the equation: P…

A: The equilibrium price and quantity refer to the point where the supply and demand curves intersect…

Q: What could a drop in the current ratio indicate

A: Solution...     A drop in current ratio indicates

Q: Brand B car costs $79,000 and has a life of 8 years. It costs $2,500 a year in  insurance, and $525…

A: given Cost of Brand B $79000 and Brand M us $67000 Life of Brand B is 8 years and life of Brand M is…

Q: For each of the following, compute the future value.

A: Future Value (FV)= To determine value of cash flow at a future date. Formula used to determine…

Q: lue (NPV) anc g decisions? Pl

A: Introduction : Net present value  can be understood as the value which depicts the actual worth…

Q: Can you make me a comparison and contrast of present value and future value?

A: Financial Accounting:- Financial accounting includes recording, summarizing and reporting a…

Q: he net present value is incorrect. Can you try the problem again?

A: Net Present Value (NPV) The difference between the present value of the cash outflow and inflow at…

Q: Given the following historical returns, what is the standard deviation?  Year 1 = 9%; year 2 = -11%;…

A: Step 1:Given :n = 5Year 1 = 9%Year 2 = -11%Year 3 = 8%Year 4 = -12%Year 5 = -9% Step 2:Calculate the…

Q: : (b) Write a detailed note on Minimum Attractive Rate of Return.

A: The minimum attractive rate of return (MARR) is the affordable rate of return utilized in the choice…

Q: What is a yield curve, and what information would you need todraw this curve?

A: Yield curve: It could be a line plotting bond yields (coupon rates) of comparative credit quality…

Q: False. Please Justify. The discount function [a(t)]^−1 is generally a decreasing

A: Decreasing function is which whose value go on decreasing with increase in value of variable.

Q: ected rate of return concept differ from that of the rea

A: There are many method of valuation of stock based on expected rate and realized return and dividends…

Q: Can we compute the IRR for each option without knowing the revenue figure? Why?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: just a,b,c and d. please also give explanation (working out)

A: Given the information provided in the table, let's analyze the question and solve it step-by-step.…

Q: What does it mean when you have a risk-free guaranteed rate? Give an example as well as the…

A: Theoretically, an investor anticipates a return of no less than the risk-free rate on any investment…

Q: How do you calculate a weighted beta?

A: In portfolio there are number of stock present in portfolio. We have to calculate weight of each…

Q: An investor invests £10,000,000 in a new factory, which takes a year to build. After construction…

A: Yield of investment refers to the return earned by the project over the investment made initially…

Q: What is meant by the term abnormal rate of return?

A: Abnormal rate of return is return earned above or below the normal rate of return.

Q: can you solve the apr and effective rate without excel ?

A: Solution:- When an equal amount is paid each period, it is known as annuity. We know, present value…

Q: What is nifty. Explain in 2 lines

A: In the stock market, a stock index refers to the group of shares and stocks which are used to…

Q: Is an higher NPV better than a lower NPV and why?

A: The net present value is the difference between sums of the present value of cash inflows and…

Q: What is the difference between the possible returns and the expected return?

A:

Q: Which one of the following is the annuity present value formula? OCx ((1 [1/(1+r)t]} -r) OCx ((1…

A: Solution:-When an equal amount is paid each period, it is known as annuity.

Q: Assume benefit is unchanged, how to manipulate  the cost to have positive NPV (net present value)

A: Net Present Value is the difference between PV of all cash inflows (benefits) and PV of all cash…

Q: The internal rate of return is: discount rate that makes the profitability index (PI) greater than…

A: IRR and PI are important tools of capital budgeting along with NPV. IRR refers to the internal rate…

Q: The break-even value calculation is similar to the calculation we use for theinternal rate of…

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: How can we calculate the Rate-of-Return with Excel?

A: The question is based on the concept of calculation of rate of return (ROR), (ROR) is percentage…

Q: For compounding more frequently than annual, the effective i Select one: a. is lower than the…

A: Effective annual interest rate is a rate that is actually paid or charged.

Q: The IRR of the project is _____ %?

A: IRR refers to the internal rate of return.   It is the rate at which NPV of a project is nil.

Q: Suppose the demand functions for two products are q1 = f(p1, p2) and q2 = g(p1, p2) where p1, p2,…

A: Given  Demand function for q1 = f(p1, p2) Demand function for q2= g(p1, p2) where (p1, p2, q1, q2)…

Q: Describe the process of computing the PW for this infinite series which is reffered to as the…

A: An infinite series of cash flows is also known as “perpetuity”. In the case of perpetuity, a fixed…

Q: Is a negative Sharpe ratio good or bad?  EXPLAIN

A: What sharpe ratio measure? It measure the excess return earn by portfolio over risk free rate at…

Q: The correct answer is 0.0200 different from yours. Can you clarify and need to show the right…

A: Risk free rate = 1% Beta = 1.4 Market rate = 2%

Q: A net present worth equation is used to solve for a ROR by setting the net present worth equation…

A: ROR or rate of return of project also known as internal rate of return of project is the interest…

Q: What happens to a future value is you increased the rate, r? What happens to a present value?

A: When the interest rate increases, the future value of a sum now will increase. This is because the…

Q: #7 For context NPV is net present value, IRR is internal rate of return, and ARR is accounting rate…

A: The chart you're referring to is likely a financial analysis chart used in capital budgeting. It…

Q: payback period, NPV, and IRR always lead to the same decision? Why or why not? If not, which one…

A: Step 1   One of the most essential choices a business owner or management will ever make is capital…