Considers both the magnitude and the timing of cash flows If the IRR is high enough, estimation of the required return might not be necessary. Disadvantages of IRR: IRR is not good for comparing two mutually exclusive investments. In case of change in sign (+,-) of cash flows result in as many IRR’s as the number of changes are in the cash flow directions of…
Question 1, Base on the suggestions of the new CEO from Microsoft Ltd, below are the scenario and findings Scenario : 1/10 net 20 This information can be used to compute the credit cost of borrowing this money. X % Discount 100 - % Discount 360 Credit Period – Discount Periods = 1 X 360 99 10 = 0.363636 = 36.36%. Annualizing The Credit Cost The 10-day discount period occurs 36 times per year. Using this information, it is possible to compute the effective annual…
The indicated capitalization rate for this investment based on the information provided is 8.20% indicating the value of this property to be $7,317,073 or $7,320,000 rounded. I base this conclusion on the following calculations: • The mortgage constant is .085972 calculated using the following HP-12C keystrokes: F Clx 1 PV 6 g i 20 g n PMT 12 x • The percent paid off on the mortgage after 5 years is 15.1004% calculated using the following HP-12C keystrokes: F Clx 6 g i 20 g n 1 PV PMT 5 g n FV…
realize low returns, triggering outflows by investors who update negatively about the efficiency of the managers running these funds. As a consequence of the outflows, funds sell assets they own, and this depresses further the prices of the assets hit by the original shock. Momentum arises if the outflows are gradual, and if they trigger a gradual price decline and a drop in expected returns. Reversal arises because outflows push prices below fundamental values, and so expected returns…
Having two or more children, there is a maximum amount of qualifying expenses is $6,000. That amount should be reduced by $1,800, since Martha received $1,800 for dependent care assistance. The total expenses are $4,200. Tim and Martha’s AGI is over $43,000 they are entitled to a credit of 20% of their expenses, or $840. ($4,200 x .20 = $840) If Tim and Martha had an AGI of $36,000 earned only by Tim, the credit would be zero. That is because there would be no child care expenses. Since Martha…
Clients typically receive a high return on investment from the program when compared to the one-off ad-hoc pricing they would have had to pay if they had not signed Premier Pass. This high return on investment for the clients is skewed, however, because had they been required to pay full price for each enrollment, many clients would not have sent that many participants to virtual classes to begin with. This is where the disconnect was with leadership views that Premier Pass was causing the…
Successful stock trading certainly depends on various factors, but one of the important ones among them is the ability to diversify your stock portfolio. This strategy is essential for achieving success, and also offers numerous other advantages. Here, we share the most important ones that will help you in understanding the importance of diversity in stock trading. Risk Reduction The first and foremost advantage of using a diverse stock portfolio is that it reduces the risk of losing your…
this money related return: funding reserves need to give back the money to their constrained accomplices while messengers need liquidity to have the capacity to make further speculations. Thus, for these organizations it is not "if" but rather "when" an exit will happen. This technology of Exit approach reflects the future good status of Johnson Angel in terms of technology. This criteria will also make the business to be young in terms of portfolio return. This will raise the Return on…
• Becky’s Education: As discussed in the education analysis, I recommend that you sell your EE Savings Bonds and use the funds to make a contribution into a 529 Savings Plan for Becky. However, this lump sum will not be enough money to cover all education costs, so I also recommend that you invest $150 monthly into the 529 Savings Plan. • Mia’s Art Gallery: The future value of Mia’s art gallery is $136,194.64. In order to reach this goal $248.89 will need to be saved monthly in the moderately…
The budget presentation for the Lieutenant Governor’s Office was headed by Ryan Cherry, Lieutenant Governor Hutchinson's Chief of Staff. The budget proposal for the Office of the Lieutenant Governor is $1.18 million (biennium) which includes, but not limited to: five full time employees, operational costs, fiscal and personnel functions. Michael J. Willden, the governor's chief of staff, represented the governor's office for the purposes of this budget hearing. Governor Sandoval is…