Question 1 (5 points) $50 today is worth MORE than $50 tomorrow. Your Answer Score Explanation True ✔ 5.00 Correct. You understand Time value of money. Total 5.00 / 5.00 Question Explanation We have assumed time value of money is positive. Question 2 (5 points) At an interest rate of 10% it is better to have $100 today than $120 in 2 years. Your Answer Score Explanation True ✔ 5.00 Correct; it is compounding! Total 5.00 / 5.00 Question Explanation All about compounding
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CASE STUDY HOMEWORK CORPORATE FINANCE PROFESSOR: G. BERTINETTI STUDENT Albert Maurer 1 The Situation: In 2010 a new company was created in order to enter into the food industry. They spent many months in studying the market‚ engineering the products and the commercial strategy‚ find out the production plants. At the end of 2010 the business plan is ready and the company has already participated to an exhibition where many potential customers said to be very interested to the project
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English as a global language – 2nd edition – David Crystal Chapter 1 summary In why a Global Language‚ author David Crystal explains what a global language is‚ how English has become the global language of today‚ and also why it is important for the world to have a global language. The article begins with David Crystal going explaining how English is the global language today. He explains how English is everywhere‚ it can be found all around the world‚ even headlines in other countries
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UNLOCKING HUMAN CAPITAL Entitlements and Governance - a case study SECOND ADMINISTRATIVE REFORMS COMMISSION UNLOCKING HUMAN CAPITAL Entitlements and Governance a case study Second Administrative Reforms Commission Government of India 2nd Floor‚ Vigyan Bhawan Annexe‚ Maulana Azad Road‚ New Delhi 110 011 e-mail : arcommission@nic.in website : http://arc.gov.in JULY 2006 GOVERNMENT OF INDIA SECOND ADMINISTRATIVE REFORMS COMMISSION SECOND REPORT UNLOCKING HUMAN CAPITAL
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PEP. AKHIR SEMESTER 2009 CADANGAN SOALAN MAF 620 – CORPORATE FINANCE Question 1 Consider the following information about two securities: State of Economy Probability Return on Lotek (%) Return on Hitek (%) Recession 0.2 10 50 Normal 0.5 15 20 Expansion 0.3 25 –10 REQUIRED: a. Determine the expected return and standard deviation of each security. (8 marks) b. Suppose you could invest in only one security. Which would
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CHAPTER 6: EFFICIENT DIVERSIFICATION 1.E(rP) = (0.5 16%) + (0.4 10%) + (0.10 6%) = 12.6% 2.a.The mean return should be less than the value computed in the spreadsheet. The fund’s return is 5% lower in a recession‚ but only 3% higher in a boom. The variance of returns should be greater than the value in the spreadsheet‚ reflecting the greater dispersion of outcomes in the three scenarios. b.Calculation of mean return and variance for the stock fund: (A) (B) (C) (D) (E) (F) (G) Scenario Probability
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Chapter 10 Capital budgeting is fundamental to the FM decision-making process; focused on investment in fixed assets. It involves measuring the incremental cash flows associated with investment proposals and the evaluation of the attractiveness of such cash flows relative to the project’s costs. At issue is the estimation of those cash flows based on various decision criteria and how to adjust for riskiness of a given project or combination of projects. Incremental after-tax cash flows are initial
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≤ 55296 0.75p + 0.45h+0.90s ≤ 1500 P – h – s ≥ 0 H - 2s ≥ 0 P ‚ h ‚ s ≥ 0 The optimal solution occurs when P=1250 h-1250 s=0 Profit =$2250 Since the booth costs $1000 to lease per game‚ and the oven is $100 per game‚ then Julia’s overall profit is‚ P = 2250 - 1100 = $1150 Hence it is worth leasing the booth. b) The shadow price for the budget is 1.50 and allowable increase is 138.4 Therefore‚ each dollar added to the budget will increase profit by $1.50 with a maximum increase
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The Second Amendment Most people would link violence and crime problems with gun control in America. The debate that Americans face today is the freedom the Second Amendment gives citizens and whether or not the country should repeal it. While some people feel that repealing it should solve the problem‚ others believe that it is one of the most important basic freedoms we have as Americans. Federal gun control laws are unconstitutional‚ and I believe the Second Amendment is both an individual
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Tom Piatak 19/11/2014 PHI2100 Essay Two 1. Mom and Pop sit down to read the daily newspaper. When they come across an article that peaks both their interest they begin to think into the matter and talk about it. This newspaper article is saying that children who were spanked are more likely to have health‚ behavioural‚ and emotional issues later in life when compared with children who were not spanked. They are able to come up with a few possible explanations however do not do any additional research
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