You are opening up a brand new retail strip mall. You presently have more potential retail outlets wanting to locate in your mall than you have space available. What is the most appropriate tool to use if you are trying to determine the optimal allocation of your retail space? O A. payback period OB. profitability index OC. internal rate of return (IRR) O D. discounted payback period O E. net present value (NPV)
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- please i just need a multiple choice answer Opportunity cost can best be defined as the a. value of the best alternative foregone when the alternative at hand is chosen. b. cost of the resources used to produce a good or service. c. money cost of a good or service. d. money cost plus interest on money borrowed to buy a good or service.Which of the following is not an advantage of the average rate of return method? a.includes the amount of income earned over the entire life of the proposal b.takes into consideration the time value of money c.emphasizes accounting income d.easy to useDefine Concept about these topics1.Payback method 2.Discounted payback method 3.Net present value 4.Internal rate of return 5.Profitability Index 6.MIRR
- Alex is considering one of two options for reducing her heating bill during the winter: New windows New furnace $3,800 $650/y 10 y Purchasing price $4.500 Annual savings $650/y Lifespan 15 y Assuming her MARR is 5%, use any comparison means (PW/AW/FW) to determine which option she should consider. Salvage value for both options is zero.1. Savings can replace a client need for insurance products. A. True B. False 2. SafeSave of Dhaka is an example of a high frequency saving model solution. A. True B. False 3. Ideally your marginal utility today will be equal to your marginal utility in the future adjusted for time value of money, or MUt = (1+r) / (1+δ) Et [MUt+1] A. True B. False 4. Moral hazard is not present for insurance products. A. True B. False 5. Mandatory savings which cannot be accessed by microloan clients until repayment can be seen as collateral or a fee for services. A. True B. FalseConsider an individual facing the prospect of having high income, YH > 0, with probability 7 and low income, YL, with probability 1 – T, YH > YL. Prior to learning whether realized income is high or low, the individual is able to go into the market and purchase (or sell) two types of assets. Let the Asset 1 have a return structure such that it pays R1.H units of goods if y = YH and pays R1,L units of goods if y = YL. Similarly, let Asset 2 have a return structure such that it pays R2.H units of goods if y = YH and pays R2,L units of goods if y to spend in the asset market but this wealth is not storable and hence cannot be save to purchase consumption goods. Denote by a1 the amount of Asset 1 purchased by the individual and az the amount of Asset 2 purchased by the individual. The individual's problem is to maximize the expected utility from consumption sub- ject to the constraints that consumption must be financed out of income and the realized return from the asset portfolio as well…
- Time value of money question: Envision you are approached with an investment opportunity. You aregiven two alternatives to choose from. Investment A has a higher interest rate than Investment B.Investment A requires a greater number of periods until you receive the benefit than Investment B. Applying concepts from the PV = FV/(1+r)^n (the NPV formula and discounting) describe the process ofhow you would decide which investment option would be better to invest in. Discussing how changes inboth the interest rate and the number of periods would affect this decision will help.What type of question is finding the detail to more clearly understand why net income is decreasing when revenues are increasing? Multiple Choice What happened? What is happening? Why did it happen? What are the root causes of past results? Will it happen in the future? What is the probability something will happen? Is it forecastable? What should we do based on what we expect will happen? What should we do based on what we expect will happen? How do we optimize our performance based on potential constraints?The simple model of finacnial planning assumes which of thr following: Only assest are expected to increase the same rate as the sales projection The sales projextion is the inly thing expected to increase Assets liabilities equity and expenses are projected to increase at the same rate as the sales projections
- Match each term with the best definition or descriptor. NPV is __________ ( a unitless ratio, a unit of time, a dollar vallue, or a rate of return). IRR is ___________ ( a unitless ratio, a unit of time, a dollar vallue, or a rate of return). Profitability index is __________( a unitless ratio, a unit of time, a dollar vallue, or a rate of return).Rank the following goods, according to how much their present price responds to expected future prices. (1-most responsive; 4=least responsive). Hint: You should think about the relative costs of storing the good, and the ease of buying and selling it (liquidity) because both help to determine the feasibility of adjusting the timing of purchases and sales. < Iron. Stocks. Apples. Gold.According to Wald's criterion, which investment is decided by looking at the profitability of three investments such as S1, S2 and S3 in the following economic environments? Economic Conditions S1 S2 S3 Vivid Economic Situation 13 6 7 Normal Economic Condition 10 9 8 Stagnant Economic Condition 7 14 4 Recession Condition 8 7 15