mutually exclusive projects. The cash flows of the projects are as follows: Year | Project A | Project B | 0 | -$2‚000‚000 | -$2‚000‚000 | 1 | 500‚000 | | 2 | 500‚000 | | 3 | 500‚000 | | 4 | 500‚000 | | 5 | 500‚000 | | 6 | 500‚000 | | 7 | 500‚000 | 5‚650‚000 | a. Compute the NPV and IRR for the above two projects‚ assuming a 13% required rate of return. b. Discuss the ranking conflict. c. What decision should be made regarding these two projects? Answer: a.
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3 Factors that Influence Rate of Return Any bondholder‚ or any investor for that matter‚ will allow three factors to influence his or her required rate of return. The three factors are the following: real (pure) rate of return‚ inflation‚ and risk premium. These three factors equal the risk free rate which is the rate of return of an investment with no risk of financial loss. This is also the rate that investors would expect from an absolutely risk-free investment over a period of time.
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LINEAR PROGRAMMING FORMULATION PROBLEMS AND SOLUTIONS 7-14 The Electrocomp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air conditioner takes 3 hours of wiring and 2 hours of drilling. Each fan must go through 2 hours of wiring and 1 hour of drilling. During the next production period‚ 240 hours of wiring time are available and up to 140 hours of drilling
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BUSN300-1005B-10 Unit 2 Individual Project 2: Expected U.S. Unemployment Rate: A look into the future January 18‚ 2011 Professor Lynn Moore Introduction The economy is in a real crisis regarding the rapid decline of employment across the nation. The United States unemployment rate at the end of 2010 was reported at 9.4 percent‚ however‚ despite the high percentage of unemployment nationwide there may be a light at the end of this very dark tunnel. The national unemployment rate between November of 2010
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is likely to generate a sustainable competitive advantage for Nucor? 6. Should Nucor commit to thin-slab casting? C ase Analysis Question M ake a recom m endation r egarding w hether Nucor should go forward with the t hin - slab casting project. In developing your recom m endation‚ you should a ddress s everal qu estions . 1 . F irst‚ what have been the foundations of Nucor’s com petitive advantage o ver the past decade? W h ich o f those (if any) are likely to help them s ucceed in
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Davina Cooke In lord of the flies the conch represents democracy and civilisation. How far do you agree with this statement? When the boys first arrive on the deserted island‚ there is a sense of distance between the boys. Ralph and Piggy find a conch shell on the beach and they use this to gather the boys together “the rule of the conch”. The conch shell becomes a powerful symbol between them which means civilisation and democracy for who ever has it can speak whilst the rest listen. Therefore
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as the conch was a symbol for the boys stuck on the island. To most the conch is just a shell but to the boys on the island it was a big part of their struggling existence. The conch symbolizes civilization and hope. The conch is a symbol in this story. To begin‚ Ralph and Piggy find the conch in the mud. As they stood there holding it they were completely unaware that they had just stumbled upon one of the only pieces of civilization that anyone would have for a long time. As the conch is sounded
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are revealed to the reader. The conch‚ beast‚ and Piggy’s eyeglasses are the most important symbols that are expressed in this novel. These three symbols show how the children adapt to their environment and find their own ways to survive. They also assist in the development of each character’s personality and traits. The first symbol is of the conch. The conch was a large shell which was found by Piggy and Ralph in the beginning of the novel. The wielder of the conch represents the person who has
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No one knows how long it has been since they crashed‚ all they know is they do not want to leave. As I walked the woods looking for a fruit tree‚ I wondered when the conch would be blown today. I finally arrived to my favorite stop but it seemed someone else found it too. Those littluns‚ always eating all the food. We need more people hunting because of this. If they were useful we would have better huts and more smoke from our fire. As I became ready to walk away sadly I heard a rustle near me
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VaR‚ Stressed VaR‚ and Expected Shortfall Jim Chen* This note summarizes the measurement of market risk in the trading book under the most recent accords of the Basel Committee on Banking Regulation‚ known as Basel II‚ 2.5‚ and III. Each of these three accords on global banking regulation has embraced a different primary measure of market risk: traditional value-at-risk (VaR)‚ stressed VaR‚ and expected shortfall. After introducing the mathematics of VaR and expected shortfall‚ this note will
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