Business, 03.11.2020 16:50, takaylawynder
Consider the following scenario analysis: (LO11-2) Rate of Return Scenario Probability Stocks Bonds Recession 0.20 −5% +14% Normal economy 0.60 +15 +8 Boom 0.20 +25 +4 a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms? b. Calculate the expected rate of return and standard deviation for each investment. c. Which investment would you prefer?
Answers: 2
Business, 21.06.2019 22:20, abdulalghazouli
Amachine purchased three years ago for $720,000 has a current book value using straight-line depreciation of $400,000: its operating expenses are $60,000 per year. a replacement machine would cost $480,000, have a useful life of nine years, and would require $26,000 per year in operating expenses. it has an expected salvage value of $130,000 after nine years. the current disposal value of the old machine is $170,000: if it is kept 9 more years, its residual value would be $20,000. calculate the total costs in keeping the old machine and purchase a new machine. should the old machine be replaced?
Answers: 2
Business, 24.06.2019 07:00, becca2327
Alogical starting point from which the study of international trade begins is a. the principle of comparative advantage. b. the principle of absolute advantage. c. the recognition that not all markets are competitive. d. the recognition that government intervention in markets sometimes enhances the economic welfare of the society.
Answers: 1
Business, 24.06.2019 09:40, saabrrinnaaa
1. assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 2. should the outside supplier’s offer be accepted? 3. suppose that if the carburetors were purchased, troy engines, ltd., could use the freed capacity to launch a new product. the segment margin of the new product would be $200,000 per year. given this new assumption, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 4. given the new assumption in requirement 3, should the outside supplier’s offer be accepted?
Answers: 1
Consider the following scenario analysis: (LO11-2) Rate of Return Scenario Probability Stocks Bonds...
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