A financial advisor informs a client that the expected return on a portfolio is 8% with a standard deviation of 12%. There is a 25% chance the return will be negative and a 15% chance that the return would be above 16%. Does her assessment follow a normal distribution? Calculate the probabilities for a normal distribution and compare.

Answers

Answer 1

Answer:

A) The assessment does not follow a normal distribution

B ) P(r<0) = 0.2546 ( from standard normal table ),     P( r > 0.16 ) ≠ 0.15

Explanation:

Expected return on portfolio  E (r) = 8%

Standard deviation (STD) = 12%

chances of Negative return  P(r < 0 )  = 25%

calculate the probabilities for a normal distribution

E (r) = 0.08 , STD = 0.12,  P(r < 0 ) = 0.25

P( r > 0.16 ) = 0.15

calculating the value of the probability  P(r < 0 )

P(r < 0 ) = P [tex](Z < \frac{0-E(r)}{STD} )[/tex]

              = P ( Z <  [tex]\frac{0-0.08}{0.12}[/tex] )

              = P ( Z < - 0.667 )

P(r<0) = 0.2546 ( from standard normal table )

calculating the value of the  probability P( r > 0.16 )

P( r > 0.16 ) = [tex]P ( Z > \frac{0.16- E(r)}{STD})[/tex]

                  = P ( Z > [tex]\frac{0.16-0.08}{0.12}[/tex] )

                  = P ( Z > 0.667 )

to compare if p(r>0.16 ) is = 0.15

 P(R > 0.16 ) = 1 - P ( Z < 0.667 )

                    = 1 - 0.7454 ( value from standard normal table )

                    = 0.2546

hence P( r > 0.16 ) ≠ 0.15

The assessment does not follow a normal distribution


Related Questions

Let M be the number of units to make and B be the number of units to buy. If it costs $2 to make a unit and $3 to buy a unit and 4000 units are needed, the objective function is

Min 2M + 3B

Min 4000 (M + B)

Max 2M + 3B

Max 8000M + 12000B

Answers

Answer:

Min 2M + 3B

Explanation:

Data provided in the question

Let us assume M denotes the making units

B denotes the buying units

So,

Making cost per unit = $2

And, the buying cost per unit = $3

And, the total number of units required = 4,000 units

Based on the above information, the objective function is Min 2M + 3B.

This indicates the minimum total cost

Hence, the correct option is A.

Luther Corporation Consolidated Balance Sheet December​ 31, 2006 and 2005​ (in $​ millions) Assets 2006 2005 Liabilities and ​Stockholders' Equity 2006 2005 Current Assets Current Liabilities Cash 58.5 Accounts payable 73.5 Accounts receivable 39.6 Notes payable​ / shortterm debt 9.6 Inventories 42.9 Current maturities of longterm debt 36.9 Other current assets 3.0 Other current liabilities 6.0 12.0 Total current assets 144.0 Total current liabilities 132.0 LongTerm Assets LongTerm Liabilities Land 62.1 Longterm debt 168.9 Buildings 91.5 Capital lease obligations Equipment 99.6 Less accumulated depreciation ​(​) ​(52.5) Deferred taxes 22.8 22.2 Net​ property, plant, and equipment 200.7 Other longterm liabilities Goodwill 60.0 Total longterm liabilities 191.1 Other longterm assets 63.0 42.0 Total liabilities 323.1 Total longterm assets 242.7 ​Stockholders' Equity 63.6 Total Assets 386.7 Total liabilities and ​Stockholders' Equity 386.7 Refer to the balance sheet above. ​ Luther's current ratio for 2006 is closest​ to:

Answers

Answer:

Luther Corporation

Current Ratio for 2006 is closest to:

1.1 : 1

Explanation:

a) Data and Calculations:

Total Current Assets = $144 million

Total Current Liabilities = $132 million

Current Ratio = Current Assets/Current Liabilities

= $144/$132

= 1.1 : 1

b) Luther Corporation's current ratio is a liquidity measure that shows Luther's ability to pay off short-term obligations worth $132 million or those due within one year with its current assets of $144 million.  The ratio tells investors and analysts of Luther Corporation how Luther can use its current assets to pay off its current debts.  Since Luther's current ratio is higher than 1, it is considered good, depending on the industry average.  This means that Luther's current ratio of 1.1 : 1 should not be considered in isolation, but in comparison with other firms in the industry and its performance over a number of years.

Which of the following is NOT a benefit of a social media presence for a brand? Group of answer choices Social media allows companies to have a short-term focus. Social media allows marketers to establish a public voice and presence online. Social media can cost-effectively reinforce other communication activities. Social media can encourage companies to stay innovative and relevant. Social media can be used to build or tap into online communities.

Answers

Answer: Social media allows companies to have a short-term focus.

Explanation:

Social Media has made the world way more connected than it was before even with the advent of the Internet. As such, companies were able to leverage on this to improve their brand and popularity by being present on the various social media platforms.

With social media, companies have been able to marketers to establish a public voice and presence online, cost-effectively reinforce other communication activities, build online forums and communities as well as remain relevant in a fast changing world.

Companies having a short term focus as a result of social media is not a benefit of social media. A company should always think long term and even social media can help them achieve long term growth if long term marketing plans are integrated with social media marketing.

Your client in the 25% federal income tax bracket lives in a state where his earnings place him in the 6% bracket for state income tax purposes. If he were to purchase a 4% bond issued by a political subdivision of another state, his total tax-equivalent yield would be

Answers

Answer:

Slightly more than 5.33%.

Explanation:

In case when the municipal bond owned by an individual i.e. issued is not for interest free tax rate but also it is non tax on that particular state

So here the tax-equivalent yield is

= Purchase bond percentage ÷ (1 - tax rate)

= 0.04 ÷ (1 - 0.25)

= 5.33%

Hence, his total tax-equivalent yield is 5.33% i.e. calculated by applying the above formula

The net income reported on the income statement for the current year was $121,900. Depreciation recorded on store equipment for the year amounted to $20,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $48,030 $44,190 Accounts receivable (net) 34,440 32,660 Merchandise inventory 47,020 49,710 Prepaid expenses 5,280 4,200 Accounts payable (merchandise creditors) 45,000 41,800 Wages payable 24,590 27,310 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $ b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when .

Answers

Answer:

See answers below.

Explanation:

In order to get net cash flow through indirect method, we will have to make adjustment to the net income; hence we get the increase or decrease of different accounts with the data balance.

a) End beginning cash $48,030 $44,190

Increase in cash $3,840

Accounts receivable(net) $34,440 $32,660

Increase in accounts receivable $1,780

Merchandise Inventory $47,020 $49,710

Decreased inventory -$2,690

Prepaid expenses $5,280 $4,200

Increase prepaid expenses $1,080

Accounts payable(Merchandise creditors) $45,000 $41,800

Accounts payable increase $3,200

Wages payable $24,590 $27,310

Decreased wages payable -$2,720

Per below, we have some accounts that are added (+) to the net income while some are also deducted (-).

Net income $121,900

Adjustment to reconcile the net income to cash

+ Depreciation $20,100

+ Increase in cash $3,840

- Increase in accounts receivable ($1,780)

+ Inventory decrease $2,690

- Increase prepaid expenses ($1,080)

+ Accounts payable increase $3,200

- Decreased wages payable ($2,720)

Net cash $146,150

b) Briefly explain why net cash flow from operating activities is different other than net income.

The reason is that while net income refers to the earned profit by a company for a period ; cash flow from operating activities are measurement of daily cash (in and out) expended on business operation. Cash flow give explanation on the use of cash in an organization on a daily basis which includes net income from the income statement, changes in working capital, adjustments to net profits etc. t is to be noted that the starting point of calculating cash flow from operating activities is the net income.

Lacy Technology transferred items with $12,600 of cost out of the Assembly Department because the items were finished and ready to be sold. What journal entries correctly reflects this transaction?

Answers

Answer:

Dr Finished Goods Inventory 12,600

Cr Work in Process - Assembly 12,600

Explanation:

Based on the information given we were told that the company transferred items that cost the amount of $12,600 from the Assembly Department because the items were finished and ready to be sold which means that the journal entries will be recorded as:

Dr Finished Goods Inventory 12,600

Cr Work in Process - Assembly 12,600

For an automobile company, the total overhead applied was $48,000,000 at the end of the year. Actual overhead was $52,850,000. Closing over/under applied overhead into cost of goods sold would cause net income to:

Answers

Answer:

Net income decreased by $4,850,000.

Explanation:

Given total overhead applied = $48000000

The actual overhead = $52850000

Over/under Applied overhead = total overhead applied - Actual overhead at the end of the year.

Over / under Applied overhead = 48000000-52850000

Over / under Applied overhead = -$4850000

From the calculation, it can be seen that the overhead is underapplied therefore when under applied overhead allocated to cost of goods sold then cost of goods sold decreased by $4850000.

Charlie is a strategist who wants to decide on the appropriate strategy to help his firm "go global." Which of the following should Charlie consider while choosing his strategy?A) He must be aware of the fact that despite globalization and the emergence of the Internet, firm geographic location has actually maintained its importance.B) He should rely on his firm's business-level strategy as a clue to possible strategies pursued globally.C) He should remember that he has only one framework at his disposal to make global strategy decisions.D) He must remember that higher levels of control and a lower likelihood of any loss in reputation go along with less investment-intensive foreign entry modes.

Answers

Answer: A) He must be aware of the fact that despite globalization and the emergence of the Internet, firm geographic location has actually maintained its importance.

Explanation:

Charlie must consider that despite the fact that the internet and technology have made globalization more accessible, the location of a business remains very important hence the old saying "its all about location location location".

The firm's geographical location has an effect on stakeholders in the company such as customers, employees and suppliers. For the customers, even if the business was to rely on the internet and delivering goods, the location needs to be convenient enough to ship goods from.

The Suppliers as well need to be able to send the goods ordered for in a timely fashion and an improper location can hamper that. Even employees need a place to work in that is conducive for them in terms of logistics and a safe working environment. Charlie should definitely not forget about the importance of location.

"A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate recommendation would be to:"

Answers

Answer: sell covered calls

Explanation:

A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate recommendation would be to sell covered calls.

It should be noted that a covered call is a financial transaction that takes place when a call option is sold by an investor even though the investor still owns part of the security based on what's sold.

Margin on price as a percentage is the expression of how much you mark your product up by to arrive at your retail price. True False

Answers

Answer:

False

Explanation:

The margin on price refers to a percentage by taking a difference between the gross profit and the selling price

Here gross profit comes by

= Selling price - cost price

Now in the cost price we added some markup percentage i.e most probably equivalent to the retail price

Hence, the given statement is false

A decline in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.

Answers

Answer: fall; rise

Explanation:

The real interest rate is the rate of interest that is received by an investor, lender or after inflation has been taken into consideration.

The real interest rate is when the inflation rate is deducted from the nominal interest rate. A reduction in the domestic real interest rate would cause a fall in net exports and a rise in the exchange rate.

Suppose annual inflation rates in the U.S. and Mexico are expected to be 6% and 80%, respectively, over the next several years. If the current spot rate for the Mexican peso is $.005, then the best estimate of the peso's spot value in 3 years is Group of answer choices $.00276 $.01190 $.00321 $.00102

Answers

Answer:

$.00102

Explanation:

The forward peso's spot value in 3 years can be computed using the below formula:

forward exchange rate=current spot rate*(1+US inflation)^3/(1+Mexican inflation)^3

current spot rate=$.005,

US inflation rate is 6%

Mexican inflation rate is 80%

forward exchange rate=$.005,*(1+6%)^3/(1+80%)^3

forward exchange rate(in 3 years)=$0.00102

Projectized organizations are especially effective at helping team members to maintain their discipline-specific competencies. Group of answer choices

Answers

Answer: False

Explanation:

A projectized organization is a form of organization structure is that is designed such that it is hierarchical and headed by the project manager who is typically involved in every decision that is made regarding the project as he or she is the one that team members report to.

Therefore, projectized organizations are not effective at helping team members to maintain their discipline-specific competencies.

Pisa, Inc. leased equipment from Williamsburg Company under a four-year lease requiring equal annual payments of $68,830, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. Pisa, Inc.'s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pisa, Inc.) is 8%. Assuming that this lease is properly classified as a capital lease, what is the approximate amount of principal reduction recorded when the second lease payment is made in Year 2?

Answers

Answer:

$54,639

Explanation:

the approximate amount of principal reduction when the second lease payment is made in Year 2 can be calculated by making the Lease amortization table as follows

DATA

Annual payments = 68,830

Implicit rate = 8%

Annuty factor for 4 years at 8% = 3.55710

Present value of lease payment =$246,212 (68830*3.57710 )

                                                      Year 1                Year 2

Opening balance                             -                      $177,382(w)

interest                                              -                      $14,191(w)

payments                                      $68,830             $68,830

principal payments                     $68,830              $54,639

closing balance                          $177,382(w)         $122,743

Working

Closing balance = Present value of lease payment - Annual payment

Closing balance = $256,212 - $68,830

Closing balance = $177,382

Interest = closing balance x implicit rate

Interest =  $177,382 x 8%

Interest = $14,190.56

After analyzing its own resources and unique abilities, a company is now trying to determine what group of customers it can satisfy with a good or service. It is in the process of choosing a

Answers

Answer: target market

Explanation: A target market is simply a group of people whose needs and preferences match the product range of a company and to whom those products are marketed, often times actively. As such, when the resources and unique abilities of a firm has been analysed, and is now in the process of determining what group of customers it can satisfy with a good or service, then it is in the process of choosing a target market.

Strategic management is about formulating strategies that align an organizations internal capabilities with external opportunities while avoiding or minimizing threats. How effective has Mark Parker been as a strategic so far

Answers

Answer:

Mark Parker has been very effective as a strategist for the following reasons:

Explanation:

He has been able to keep Nike's brand equity. His policies on HR has generated an effect which translated to increased motivation for his employees to commit to the attainment of the company's objectivesA strategist must be able to make plans and execute them. Nike's strategy is a customer-centric one. Mark was able to, regardless of the economy, ensure that Nike's products were consumer-centric and that the business units in charge of each aspect of Nike's operations were able to deliver their best.

Cheers!

Georgia is the primary shareholder in Acme, Inc., a small corporation. After its corporate certificate was issued by the state, there were no other formalities or documentation. In fact, Georgia does not keep separate books for the corporation, and sometimes combines her personal assets with those of the corporation. If she is sued individually by a corporate creditor, what would be the likely outcome

Answers

Answer:

The likely outcome would be the judgement debt being settled from her personal assets.

Explanation:

Georgia being a primary shareholder in the small corporation, it was expected that she should keep accounts that differentiate the corporation from her personal expenses. Unfortunately such didn't happen.

Since she was sued individually by a corporate creditor, it was expected that the judgement debt should be settled from her individual account which is quite different form the corporate account.

Answer: Georgia would likely be liable

Explanation:

Based on the scenario that have been provided in the question, Georgia would likely be liable because the creditors can end up piercing the corporate veil.

This means that Georgia would be held responsible for the activities of the organization.

Prepare the journal entry to record Jevonte Company’s issuance of 35,000 shares of its common stock assuming the shares have a: $3 par value and sell for $22 cash per share. $3 stated value and sell for $22 cash per share.

Answers

Answer: Please see answer in explanation column

Explanation:

a)journal entry to record Jevonte Company’s issuance at $3 par value and $22 cash per share

Account                                            Debit                        Credit

Cash(35,000 x $22)                       $770,000

Common stock, $3 par value(35,000 x 3)                       $105, 000

Paid-in captial in excess of par value, common stock

($770,000  - $105, 000 )                                                      $665,000

b)journal entry to record Jevonte Company’s issuance at $3 stated  value and $22 cash per share

Account                                            Debit                        Credit

Cash  (35,000 x $22)                    $770,000

Common stock, $3 stated value (35,000 x 3)                 $105, 000

Paid-in captial in excess of stated value, common stock

($770,000  - $105, 000 )                                                      $665,000

A Japan-based company, Sumo Gyms, Inc., issues a 35-year, semi-annual coupon bond, with a ¥300 million par value. The coupon rate is given as 5.90%, and the yield to maturity is 6.70. a. What is the value of the semi-annual coupon on the bond?

Answers

Answer:

per*

Explanation:

Suppose that the income tax rate is reduced by the federal government and simultaneously a recession hits causing the economy to move below its potential output, this will:

Answers

Answer:

Raise both the cyclical and structural deficits

Explanation:

During economic downturn the cyclical deficit will rise, leading to rise in already structural deficit of federal government. The Structural deficit arises when government continue to spend more than its revenue, and thus cyclical deficit will add upward pressure in structural deficit.

Therefore there will be Raise in both the cyclical and structural deficits

According to the Prebisch-Singer hypothesis, this fate has befallen many developing countries given the general decline in commodity prices in relation to the price of manufactured goods.A) TrueB) False

Answers

Answer: True

Explanation;

Generally, manufactured goods cost more than the commodity goods that they were manufactured from due to the value that has been added to them. This is what the Prebisch-Singer hypothesis argues, that commodity prices decline overtime in relation to manufacturing good prices.

This is a fate that has befallen many developing countries as many of them export commodity goods to developed countries who then add value to them, turning them into manufactured goods and then selling them back to developing countries at a higher price thereby negatively affecting their balance of trade.

Cash Payback Method Lily Products Company is considering an investment in one of two new product lines. The investment required for either product line is $540,000. The net cash flows associated with each product are as follows:
Year Liquid Soap Body Lotion
1 $170,000 $90,000
2 150,000 90,000
3 120,000 90,000
4 100,000 90,000
5 70,000 90,000
6 40,000 90,000
7 40,000 90,000
8 30,000 90,000
Total $720,000 $720,000
A. Recommend a product offering to Lily Products Company, based on the cash payback period for each product line.
Payback period for liquid soap
Payback period for body lotion
B. The project with the_____net cash flows in the early years of the project life will be favored over the one with the______net cash flows in the initial years.

Answers

Answer:

1a. Payback period for LIQUID SOAP =4 years

Payback period for BODY LOTION =6 years

1b. GREATEST; LESS

Explanation:

1a.Calculation for the Payback period for liquid soap

LIQUID SOAP

Year   Cash flow  Cumulative Cash flow

1 $170,000 $170,000

2 (150,000+170,000) =320,000

3 (120,000+320,000)=440,000

4 (100,000+440,000)=540,000

5 (70,000+540,000)= 610,000

6 (40,000+610,000)= 650,000

7 (40,000+650,000)= 690,000

8 (30,000+690,000)= 720,000

The Payback period for LIQUID SOAP will  be 4 years

Calculation for the Payback period of body lotion

BODY LOTIO

Year   Cash flow  Cumulative Cash flow

1  $90,000 $90,000

2  (90,000+90,000)=180,000

3  (90,000+180,000)=270,000

4  (90,000+270,000)=360,000

5 (90,000+360,000)=450,000

6 (90,000+450,000)=540,000

7 (90,000+540,000)=630,000

8  (90,000+630,000)=720,000

The Payback period for BODY LOTION will  be 6 years

Based on the calculation above for both liquid soap and body lotion the product offering i will recommend to Lily Products Company, based on the cash payback period for each product line will be LIQUID SOAP because it has a 4 years payback period.

B. The project with the GREATEST net cash flows in the early years of the project life will be favored over the one with the LESS net cash flows in the initial years.

Julie is working on formulating a marketing plan to increase the market share of Little Debbie Snack Cakes. According to the discussion in class, which one of the following strategies would Julie find most effective as a way to increase Little Debbie's long-term market share?

a. Increase product quality
b. Increase product innovation
c. Increase advertising
d. Increase sales promotion

Answers

Answer:

Correct answer:

d. Increase sales promotion

Explanation:

For Julie who owns the Little Debbie Snacks Cakes, in order for her to increase the market share of his company, there will be need for her to increase her sales promotion. This would be through series of campaign which she could run like "Buy 2 get 1 FREE" or "A dozen order free delivery + gift" etc.

The total purchase of the products and services of the firm and the percentage that goes to the company's capital is the term definition of market share.

If the consumers buy for instance 50 chocolates, out of which the 25 are from one company, and in that case, that company holds 25% market share.

The correct option is d. Increase sales promotion

Option d. Increase sales promotion is correct because for Julie who owns the Little Debbie Snacks Cakes, in order for her to increase the market share of his company, there will be a need for her to increase her sales promotion. This would be through a series of campaigns.

Options a, b, and c are wrong because they do not the effective way to increase the sale of the products and services. The options are focusing on the other promotional and advertising activities and the efficiency and effectiveness of the product section.

To know more about the long term market share, refer to the link below:

https://brainly.com/question/7868931

Antitrust regulations would most likely require one of the following in order to determine whether or not a merger may enhance competition. Which one is it?
A. Highly complex analytical tools
B. Analysis using numerical tools
C. Obvious objective judgments
D. Readily qualified judgments

Answers

Answer: analysis using numerical tools

Explanation:

The main reason for the creation of Antitrust laws was to give power to the government to block some particular mergers and also break up the large firms to smaller ones.

Antitrust regulations would most likely require analysis using numerical tools in order to determine whether or not a merger may enhance competition.

In its third year, a project is expected to produce earnings before interest and taxes of $671,551 and depreciation expense of $125,193. If the company’s tax rate is 34%, what is the project’s expected operating cash flow?

Answers

Answer:

Operating cash flow= $568,416.66

Explanation:

Giving the following information:

Earnings before interest and taxes= $671,551

Depreciation expense= $125,193.

Tax rate= 34%

To calculate the operating cash flow, we need to use the following structure:

EBIT= 671,551

Tax= (671,551*0.34)= (228,327.34)

Depreciation= 125,193

Operating cash flow= 568,416.66

seigel co. maintains a defined-benefit pension plan for its employees. at each balance sheet date, seigel should report a pension asset / liability equal to the

Answers

Answer: funded status relative to the projected benefit obligation

Explanation:

A defined benefit pension plan is a pension plan type in which the employer promises to pay the worker a lump sum or a pension payment which is based on the earnings history, age and the tenure of service of the worker.

Since Seigel co. maintains a defined-benefit pension plan for its employees. at each balance sheet date, seigel should report a pension asset/liability that will be equal to the funded status relative to the projected benefit obligation.

fremont which uses the high-low method reported total cost of $10 per unit its lowest production level, 5000 units. when production tripled to its highest level, the total cost per unit dropped to $5 variable cost per unit

Answers

Answer:

$2.50

Explanation:

Calculation for the estimation of   variable cost per unit

                        Units     Total cost

High method  15,000×$5  per units  =$75,000

(5,000*3)=15,000

Low  method  5,000*$10 per units=$50,000

Difference  10,000     $25,000  

Variable cost per unit =$25,000/10,000

Variable cost per unit=$2.50

Note: Based on the information given we were told that production tripled to its highest level which means the high method units will be 15,000 units (5,000 units*3)

Therefore Fremont would estimate its variable cost per unit as: $2.50

________ means that service quality depends on the quality of buyer-seller interaction during the service encounter.

Answers

Answer: interactive marketing

Explanation:

Interactive marketing is also referred to as event-driven marketing or trigger based marketing and it simply has to do with using an effective communication which is two-ways to enable the consumers connect directly with a company.

Interactive marketing means service quality depends on the quality of buyer-seller interaction during the service encounter.

Alpha Industries is considering a project with an initial cost of $9.1 million. The project will produce cash inflows of $1.84 million per year for 7 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.94 percent and a cost of equity of 11.49 percent. The debt–equity ratio is .71 and the tax rate is 40 percent. What is the net present value of the project?

Answers

Answer:

NPV = $1.22  million

Explanation:

The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.  

NPV of an investment:  

NPV = PV of Cash inflows - PV of cash outflow  

To work oit the NPV we would need to determine the discount rate i.e cost of capital as follows:

Cost of capital -discount rate -

WACC = We×Ke + Wd×Kd

After cost o debt = 5.94× (1-0.4)=3.56

WACC = (0.71×3.56 %)  + (0.29×11.49%)=5.86 %

PV of cash inflow = A× (1- (1+r)^(-n))/r

A- annul cash inflow, r- 5.86%, n- 7

PV of cash inflow= 1.84 million × (1- 1.0586^(-7))/0.0586 =10.32

Initial cost = 9.1 million

NPV = 10.32  - 9.1 =  1.22 million

NPV = $1.22  million

What describes minerals that are deemed real property, such as gold and silver, until they are removed from the earth and become personal property?
A. Mineral rights.
B. Nutrients.
C. Synthetics.
D. Solid minerale.

Answers

Answer:

The correct answer is D

Explanation:

Solid minerals contained in the land

(Coal, iron, ore, gold or silver)

Hope this helps! (づ ̄3 ̄)づ╭❤~

Minerals known as real property such as gold and silver are known as Solid minerale before they later become personal property.

What is a Solid minerale?

These are mineral that is natural occurring in a solid and inorganic state and are representable by a chemical formula.

An example of Solid minerale includes Talc, Gold, Clay, Lithium, Kyanite, Wolframite, Gemstones etc

Therefore, the Option D is correct.

Read more about Solid minerale

brainly.com/question/1869502

Other Questions
Find the measure of a. What is the equation of the line of best fit for the following data? Round theslope and y-intercept of the line to three decimal places. The receipt of dividends and interest from abroad as a result of ownership of foreign assets by a country's residents is recorded as what:____________. Question 38(Multiple Choice Worth 2 points)[OSS.01]The theories surrounding the formation of our solar system are based on manybiased opinionsincorrect factsnon-testable datascientific investigations a pupil performed an experiment in a school lab to show the action of a digestive enzyme on a food substancea) Name and enzyme suitable for such an experiment b) Name a food substance on which the enzyme that you have named will actc) Describe any preparation of the food required before the experiment is performed. If no preparation is required state why? d) give the temperature at which the enzyme-food mix should be maintained for the experiment to work e) how much time is needed for digestion of food in this experiment? f) describe a test to confirm that digestion has occurred Which of the following was considered the capital of the Eastern Roman Empire? A. Anatolia B. Constantinople C. Rome D. Macedonia For which system of inequalities is (3,-7) a solution? A. x + y < -4 3x + 2y < -5 B. x + y -4 3x + 2y < -5 C. x + y < -4 3x + 2y -5 D. x + y -4 3x + 2y -5 What is the solution set for StartAbsoluteValue z + 4 EndAbsoluteValue greater-than 15? 11 less-than z less-than 19 Negative 19 less than z less-than 11 z less-than negative 19 or z greater-than 11 z less-than 19 or z greater-than 11 Solve for W.W/9 = g The three conditions that characterize difficult managerial decisions concerning resources, capabilities, and core competencies are Which phrase best describes the relationship indicates by the scatter plotting? make a list of inventions and achievements made by Gehendra shumsher . Which preposition should be added to best connect the sentence below? Ten chairs were lined up _______ the east wall. Question 6 options: a) pending b) underneath c) along d) This sentence does not need a preposition The digits of a 2 digit number differ by 3. Is the digits are interchanged, and the resulting number is added to the original number, we get 143. What can be the number? Calculate:a) QR b) PS c) The area of quadrilateral PQRS On a plane trip, baggage over 40 pounds ischarged at the rate per pound of 1% of the one-way fare. The charge for a bag weighing 52pounds on a trip where the one-way fare is $98is:HELP PLEASEE!! QUICK!! lab safety test Safety goggles and an apron must be worn when handling chemicals labeled corrosive because they:________. Please answer now question help me plz can i have help Which of the following best describes "overburden"? Drilling underneath layers of rock and soil Rock and soil that is removed to mine ore Reclamation of land from mining ore Residue that is left over from mining ore