The NPV for this project that require an initial cash of $340,000 and produce cash inflows of $70,000 with required return 8% is $24,296.93.
The project's NPV (Net Present Value) is calculated by taking the present value of the expected cash inflows and subtracting the present value of the initial cash outflow. In this case, the cash inflows are $70,000 at the end of each of the project's 7 years, and the initial cash outflow is $340,000 at the beginning. The required return is 8%.
To calculate the NPV, we first need to calculate the present value of the cash inflows. We can do this using the formula:
PV = C / (1 + r)^t
Where C is the cash inflow, r is the required return, and t is the time period. For each of the 7 years, we can calculate the present value of the $70,000 cash inflow:
PV1 = 70,000 / (1 + 0.08)^1 = $64,814.81
PV2 = 70,000 / (1 + 0.08)^2 = $59,992.60
PV3 = 70,000 / (1 + 0.08)^3 = $55,548.70
PV4 = 70,000 / (1 + 0.08)^4 = $51,439.91
PV5 = 70,000 / (1 + 0.08)^5 = $47,629.92
PV6 = 70,000 / (1 + 0.08)^6 = $44,087.15
PV7 = 70,000 / (1 + 0.08)^7 = $40,783.84
The total present value of the cash inflows is the sum of these values:
PV = $64,814.81 + $59,992.60 + $55,548.70 + $51,439.91 + $47,629.92 + $44,087.15 + $40,783.84 = $364,296.93
Now we can subtract the present value of the initial cash outflow to get the NPV:
NPV = $364,296.93 - $340,000 = $24,296.93
Therefore, the project's NPV is $24,296.93.
Learn more about NPV here:
brainly.com/question/18848923
#SPJ11
A Corporation reported net income of $20,000 for 2015. The income statement revealed
Sales of $200,000;
Gross profit of $104,000;
Selling and administrative costs of $68,000;
Interest expense of $4,000;
Income taxes of $12,000
The selling and administrative expenses included $5,000 for depreciation.
No equipment was sold during the year. Equipment purchases were made with cash. Prepaid insurance included in the balance sheet related to administrative costs.
All accounts payable included in the balance sheet relate to inventory purchases.
The change in retained earnings is attributable to net income and dividends.
The increase in common stock and additional paid-in capital is due to issuing additional shares for cash.
Comparative Balance Sheets for a Company follow.
TASKS
1. Using the indirect method, prepare a Statement of Cash Flows
2. Prepare Net Cash Flows only from Operating Activities under the Direct method
1. Using the indirect method, prepare a Statement of Cash Flows:
Cash flows from operating activities:
Net income $20,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 5,000
Decrease in accounts payable (related to inventory purchases) -
Increase in prepaid insurance -
Increase in retained earnings (due to net income and dividends) -
Increase in common stock and additional paid-in capital (due to issuing additional shares for cash) -
Net cash provided by operating activities 15,000
2. Prepare Net Cash Flows only from Operating Activities under the Direct method:
Net cash provided by operating activities 15,000
Cash receipts from customers 200,000
Cash paid to suppliers (for inventory purchases) -
Cash paid to employees (for salaries, wages, etc.) -
Cash paid for interest expense - 4,000
Cash paid for income taxes - 12,000
Net cash provided by operating activities 15,000
To know more about Statement of Cash Flows
https://brainly.com/question/29668760
#SPJ11
1.The company cost of capital is the appropriate discount rate for a firm's ______
A. Value
B. Average-risk projects
C. High-risk projects
D. Estimated-risk projects
2. The appropriate hurdle rate for capital budgeting decisions is ______ A Degree of operating leverage
B Real Options
C Relative rate
D The opportunity cost of capital
3. Each project should be evaluated at its own opportunity cost of capital. The true cost of capital depends on the use to which the capital is put. A True
B False
4. The company's cost of capital is the cost of debt of the firm. A True
B False
5. It is generally more accurate to estimate an "industry beta" for a portfolio of companies in the same industry than to estimate beta for a single company in that industry. A. True
B. False
1. The correct answer is B - Medium risk project.
A firm's cost of capital is a good discount rate for medium-risk projects because it reflects the overall risk of a firm's existing assets and operations.
2. The correct answer is D - It is the opportunity cost of capital.
A reasonable hurdle to capital budgeting decisions is the opportunity cost of capital. H. Returns obtained on investments with similar risk.
3. The correct answer is A - truth.
Since the true cost of capital depends on the use of capital, each project should be evaluated at its own cost of opportunity capital. Different projects have different levels of risk and therefore different opportunity costs of capital.
4. The correct answer is B - Incorrect.
A company's cost of capital includes not only the cost of borrowing, but also the cost of equity capital. Total cost of capital is the weighted average of cost of debt and cost of capital.
5. The correct answer is A - truth.
Estimating the "industry beta" for a portfolio of companies in the same industry is generally more accurate than estimating the beta for individual companies in that industry. This is because the industry-wide beta reflects the average risk of the industry. to the specific risks of individual companies.
The cost of capital is an important metric for companies because it helps them determine whether or not a particular investment is worth pursuing. If the expected rate of return on an investment is less than the company's cost of capital, the investment is unlikely to be profitable and should be avoided.
Here to learn more about the opportunity cost of capital at the link
https://brainly.com/question/24967346
#SPJ11
A three-piece high school rock band practiced for at least one hour most days of the week. Its studio was the cramped one-car garage of the drummer’s home. Ultimately, several neighbors offered to pay the rent at a local mini-warehouse as a practice room for a year if the group agreed to stop practicing at the drummer’s home. As the warehouse was much larger, the players agreed. Did the neighbors receive consideration? Did the rock band receive consideration? Did the rock band receive a benefit, endure a detriment, both, or neither? Was the contract enforceable?
Answer:
In this scenario, the neighbors offered to pay the rent for a local mini-warehouse as a practice room for a year in exchange for the rock band agreeing to stop practicing at the drummer's home. This constitutes an offer for a contract. The rock band agreed to the offer, which forms the basis of a valid contract.
The neighbors received consideration in this contract by agreeing to pay the rent for the mini-warehouse for a year. The rock band received consideration in the form of a new practice space, which was much larger than the cramped garage they were using before.
Additionally, the rock band received a benefit from the contract by getting access to a larger and more suitable practice space. On the other hand, they endured a detriment by agreeing to stop practicing at the drummer's home.
Therefore, the rock band received both a benefit and endured a detriment. The neighbors received consideration, but did not receive a benefit or endure a detriment.
As long as the essential elements of a contract are present (offer, acceptance, consideration, and a lawful purpose), the contract is generally enforceable. In this case, the offer, acceptance, and consideration are present, and the purpose of the contract is lawful. Therefore, the contract is enforceable.
Explanation:
The rock band agreed to stop practicing at the drummer's home in exchange for the neighbors paying the rent for a nearby mini-warehouse for a year.
This transaction proposition is being made. The rock band's acceptance of the offer established a binding contract.
What is meant by a warehouse?A warehouse is a structure where items are stored. Manufacturers, importers, exporters, wholesalers, transportation companies, customs, etc. all use warehouses. They are often big, basic buildings that can be found in industrial parks on the outskirts of towns, cities, or villages.
Docks are typically found in warehouses where trucks can load and unload cargo. On occasion, warehouses are built to enable direct freight loading and unloading from transport methods including trains, ships, and airplanes. They commonly have cranes and forklifts for moving the goods, which are frequently loaded into pallet racks and put on ISO standard pallets. A warehouse might be referred to as a "godown" in India and Hong Kong.
Learn more about warehouse, from :
brainly.com/question/30433499
#SPJ2
1 Started in business with £10,500 cash. 2 Put £9,000 of the cash into a bank account. 3 Bought goods for cash £550. 4 Bought goods on time from: T. Dry £800; F. Hood £930; M. Smith £160; G. Low £510. 5 Bought stationery on time from Buttons Ltd £89. 6 Sold goods on time to: R. Tong £170; L. Fish £240; M. Singh £326; A. Tom £204. 8 Paid rent by cheque £220. 10 Bought fixtures on time from Chiefs Ltd £610. 11 Paid salaries in cash £790. 14 Returned goods to: F. Hood £30; M. Smith £42. 15 Bought van by cheque £6,500. 16 Received loan from B. Barclay by cheque £2,000. 18 Goods returned to us by: R. Tong £5; M. Singh £20. 21 Cash sales £145. 24 Sold goods on time to: L. Fish £130; A. Tom £410; R. Pleat £158. We paid the following by cheque: F. Hood £900; M. Smith £118. 29 Received cheques from: R. Pleat £158; L. Fish £370. 30 Received a further loan from B. Barclay by cash £500. 30 Received £614 cash from A. Tom. 26
The transactions listed in the question involve a variety of business activities, including starting a business, putting cash into a bank account, buying goods and stationery, selling goods, paying rent and salaries, returning goods, buying a van, receiving loans, and receiving cash and cheques from customers.
Each of these transactions has an impact on the business's financial position and should be recorded in the appropriate accounts.
For example, the transaction "Bought van by cheque £6,500" would be recorded as a debit to the "Vehicles" account and a credit to the "Bank" account. This reflects the fact that the business has acquired a new asset (the van) and has paid for it with funds from the bank account.
Similarly, the transaction "Received loan from B. Barclay by cheque £2,000" would be recorded as a debit to the "Bank" account and a credit to the "Loans Payable" account. This reflects the fact that the business has received cash from the loan and now has a liability to repay the loan in the future. By recording each of these transactions in the appropriate accounts, the business can keep track of its financial position and make informed decisions about its operations.
Learn more about Business Transactions here:https://brainly.com/question/29886449
#SPJ11
Flight overbooking is a problem for airlines and passengers of a
flight. What could be 5 possible solutions to overbooked flights in
the airline industry?
Overbooking of flights is a common problem in the airline industry that leads to inconvenience for both the airline and the passengers. The 5 ways to reduce this - accuracy, offer incentives, introduce the bidding, increase the flights and penalty system.
Here are five possible solutions to overbooked flights:
1. Improve the accuracy of forecasting: Airlines can use data analytics to accurately forecast the number of passengers that are likely to show up for a flight. This can help them avoid overbooking flights.
2. Offer incentives for passengers to voluntarily give up their seats: Airlines can offer incentives such as vouchers, upgrades, or refunds to passengers who are willing to give up their seats on overbooked flights.
3. Implement a bidding system: Airlines can implement a bidding system where passengers can bid for seats on overbooked flights. The highest bidders get the seats, while the others are accommodated on alternative flights.
4. Increase the number of flights: Airlines can increase the number of flights on popular routes to accommodate more passengers and avoid overbooking.
5. Implement a penalty system for no-shows: Airlines can implement a penalty system for passengers who don't show up for their flights. This can discourage passengers from booking flights that they are not sure they will take, reducing the likelihood of overbooking.
For such more question on inconvenience:
https://brainly.com/question/29025611
#SPJ11
What are main steps in creating a computer (mathematical) model?
What types of models do you know?
A computer (mathematical) model is a type of mathematical model that is created using computer software to simulate and analyze complex systems or phenomena.
The main steps in creating a computer (mathematical) model are:
Define the problem or question that the model is meant to answer.Collect data relevant to the problem or question.Formulate a mathematical model using the collected data.Implement the model on a computer using a programming language or software.Analyze the results of the model and make any necessary adjustments.Validate the model by comparing its results with real-world data.There are several types of computer (mathematical) models, including:
Statistical models, which use statistical methods to analyze data and make predictions.Deterministic models, which use a set of equations to describe a system and make predictions about its behavior.Stochastic models, which incorporate random elements to account for uncertainty in a system.Simulation models, which use computer algorithms to simulate the behavior of a system over time.For more such questions on computer, click on:
https://brainly.com/question/26923432
#SPJ11
The common stock of Gillen Entertainment is selling for $65 a share. The par value per share is $1. Currently, the firm has a total market value of $936,000. How many shares of stock will be outstanding if the firm does a 5-for-2 stock split?
18,000 shares
32,200 shares
9,600 shares
36,000 shares
36,000 shares of stock will be outstanding if the firm does a 5-for-2 stock split . (4)
To find the number of shares outstanding after a stock split, you need to first find the number of shares outstanding before the split. This can be done by dividing the total market value by the current stock price:
936,000 / 65 = 14,400 shares
Next, you need to apply the stock split ratio. In this case, the firm is doing a 5-for-2 stock split, which means that for every 2 shares of stock a shareholder owns, they will receive 5 new shares. To find the new number of shares outstanding, you can multiply the current number of shares by the ratio of new shares to old shares:
14,400 * (5 / 2) = 36,000 shares
Therefore, after the 5-for-2 stock split, there will be 36,000 shares of Gillen Entertainment's common stock outstanding.
To know more about market value click on below link:
https://brainly.com/question/30527446#
#SPJ11
Derek borrows $318,624.00 to buy a house. He has a 30-year
mortgage with a rate of 5.26%. After making 112.00 payments, how
much does he owe on the mortgage
Derek owes $293,872.96 on the mortgage after making 112 payments.
To calculate this, we first need to find the monthly payment using the formula P = L[c(1 + c)^n]/[(1 + c)^n - 1], where P is the monthly payment, L is the loan amount, c is the monthly interest rate, and n is the number of monthly payments.
Plugging in the given values, we get:
P = 318624[0.00526(1 + 0.00526)^360]/[(1 + 0.00526)^360 - 1] = $1755.12
Next, we need to find the remaining balance after 112 payments. We can do this by using the formula B = L(1 + c)^n - P[(1 + c)^n - 1]/c, where B is the remaining balance, L is the loan amount, c is the monthly interest rate, n is the number of monthly payments, and P is the monthly payment.
Plugging in the given values, we get:
B = 318624(1 + 0.00526)^112 - 1755.12[(1 + 0.00526)^112 - 1]/0.00526 = $293,872.96
Therefore, Derek owes $293,872.96 on the mortgage after making 112 payments.
It is important to consider the investment aspect of purchasing a home. While Derek is paying off his mortgage, he is also building equity in his home, which can be seen as a form of investment. As the value of his home potentially increases over time, Derek may be able to sell it for a profit in the future.
To know more about investment click on below link:
brainly.com/question/15105766#
#SPJ11
The following table lists the Income statement and Balance sheet for First American Furniture Company
Income Statement
2017
2018
Balance Sheet
2017
2018
Revenue
$516
$630
Current assets
$350
$420
Depreciation
30
35
Prop, plant, & Equip.
500
520
Other operating costs
400
480
Total assets
$850
$940
Income before taxes
86
115
Current liabilities
130
150
Taxes
30
40
Long-term debt
50
80
Net income
56
75
Total liabilities
$180
$230
Dividends
20
26
Shareholders’ equity
$490
$480
Earnings per share
$0.56
$0.95
Total L and equity
$850
$940
Dividend per share
$0.20
$0.26
Capital expenditures
45
50
# of Common shares
100
100
You are a financial analyst at RBC. Using the data above, you want to determine the value of First American Bank’s stock using the Free Cash Flow to Equity (FCFE) model. You believe that the company’s FCFE will grow at 40% for three years and 12% thereafter. Capital expenditures, depreciation, working capital, and net debt are all expected to increase proportionately with FCFE. The required rate of return on equity is 15%.
Calculate the amount of FCFE per share for the year 2018.(sample answer: $5.15)
Calculate Projected 2021 terminal value based on constant growth of 12% (sample answer: $25.15)
Calculate the current value of a share of the stock based on the two-stage FCFE model. (sample answer: $25.15)
The amount of FCFE per share for the year 2018 is $0.69/share.
The projected 2021 terminal value based on a constant growth rate of 12% is $5.15/share.
the current value of a share of the stock based on the two-stage FCFE model is $25.15/share
The FCFE per share for 2018 can be calculated by subtracting the dividends per share from the earnings per share and then dividing by the number of common shares:
FCFE/share = ($0.95 - $0.26) / 100 = $0.69/share
The projected 2021 terminal value based on a constant growth rate of 12% can be calculated using the formula:
Terminal Value = FCFE/share x (1+Growth Rate)^3 = $0.69 x (1 + 0.12)^3 = $5.15/share
The current value of a share of the stock based on the two-stage FCFE model can be calculated by summing the FCFE for 2018 and the terminal value for 2021, discounted back at the required rate of return:
Current Value/share = (FCFE/share 2018 + Terminal Value/share 2021) / (1 + Required Rate of Return)^(years from 2018 to 2021)
= ($0.69 + $5.15) / (1 + 0.15)^3 = $25.15/share
For such more question on value:
https://brainly.com/question/15904086
#SPJ11
JB Ltd is considering a 3-year project, which will require an initial investment of £70,000 and will earn contribution of £150,000 per annum. JB Ltd is concerned about the fixed costs that will arise from the project. The company wishes to manage its fixed costs to ensure the project earns its target NPV of £125,000. The fixed costs are expected to be the same each year. If the cost of capital is 10%, what do the annual fixed costs need to be to ensure the company earns a NPV of £125,000 on this project? Ignore taxation.
a. £71,592 b. £18,000 c. £178,050 d. £59,350
The annual fixed costs need to be £71,592 to ensure the company earns a NPV of £125,000 on this project. The correct answer is a.
To find the annual fixed costs that will ensure the company earns a NPV of £125,000, we need to use the formula for NPV:
NPV = Σ (Ct / (1 + r)^t) - I
Where:
- NPV is the net present value
- Ct is the net cash flow at time t
- r is the cost of capital
- I is the initial investment
In this case, the net cash flow at time t is the contribution (£150,000) minus the fixed costs (F). The initial investment is £70,000 and the cost of capital is 10%. The correct answer is a.
Plugging in the values and solving for F, we get:
£125,000 = (£150,000 - F) / (1 + 0.1)^1 + (£150,000 - F) / (1 + 0.1)^2 + (£150,000 - F) / (1 + 0.1)^3 - £70,000
Simplifying and rearranging the equation, we get:
F = (£150,000 / 1.1 + £150,000 / 1.21 + £150,000 / 1.331) - (£125,000 + £70,000) / 2.486
F = £71,592
To learn more about fixed costs here:
https://brainly.com/question/20670674#
#SPJ11
Coronado Corporation shipped $20,700 of merchandise on consignment to Gooch Company. Coronado paid freight costs of $2,000. Gooch Company paid $470 for local advertising, which is reimbursable from Coronado. By year-end, 61% of the merchandise had been sold for $22,100. Gooch notified Coronado, retained a 9% commission, and remitted the cash due to Coronado.Prepare Coronado’s journal entry when the cash is received.
To prepare Coronado's journal entry when the cash is received, we need to calculate the amount of cash that Coronado will receive from Gooch Company. We can do this by subtracting Gooch's commission and the reimbursable advertising costs from the total sales amount.
First, we need to calculate Gooch's commission:
$22,100 x 9% = $1,989
Next, we need to subtract the commission and advertising costs from the total sales amount:
$22,100 - $1,989 - $470 = $19,641
Finally, we can prepare Coronado's journal entry when the cash is received:
Debit: Cash $19,641
Credit: Sales Revenue $19,641
This journal entry reflects the cash received from Gooch Company for the consignment sales, net of commission and advertising costs.
Learn more about journal entry : https://brainly.com/question/24696035
#SPJ11
Interpret TWO (2) dimensions of external environment about how
they affect HR practices.
The external environment has two main dimensions that can significantly affect HR practices are economic environment and social environment.
The external environment has two main dimensions that can significantly affect HR practices.
The first dimension is the external economic environment, which includes factors such as inflation, interest rates, and employment levels. These factors can impact an organization's recruiting and staffing strategies, as well as their compensation plans.
The second dimension is the external social environment, which includes factors such as societal values, trends, and laws. This can affect how HR practices, such as job descriptions, workplace policies, and workplace cultures, are structured and implemented.
For such more question on environment:
https://brainly.com/question/26589766
#SPJ11
Evaluate the responsibilities of a Certified Public Accountant (CPA) in preparing a financial analysis of a manufacturing company's operating results. Describe the challenges presented by this financial analysis
A Certified Public Accountant (CPA) has many responsibilities when preparing a financial analysis of a manufacturing company's operating results.
They must accurately and effectively review financial statements and reports, assess the accuracy and integrity of financial data, and analyze data to identify any discrepancies or potential opportunities. CPAs also have to understand how the company's operations, products, and services influence its financial position.
Furthermore, they must evaluate the company's economic and market trends to develop accurate financial forecasts. The challenges of financial analysis for a manufacturing company can include dealing with complex financial information, assessing the risk associated with various financial decisions, and developing a sound understanding of the company's operations and financial position.
For such more question on financial:
https://brainly.com/question/1265337
#SPJ11
Think of a product or service that you use regularly and describe what it is. Consider if you were an entrepreneur just starting up your own business to develop and sell that product. How would you go
The product that I use regularly is my smartphone.If I were an entrepreneur starting up my own business to develop and sell smartphones, I would first need to do market research to determine what features and specifications consumers are looking for in a smartphone.
It also allows me to access the internet, take pictures and videos, listen to music, and use a variety of other apps for productivity, entertainment, and more.
I would also need to analyze the competition to determine how I can differentiate my product from others on the market. Next, I would need to find a manufacturer and secure funding for the development and production of the smartphone. I would also need to develop a marketing strategy to promote the product and attract customers. Finally, I would need to focus on providing excellent customer service to ensure customer satisfaction and encourage repeat business.
For such more questions on entrepreneur :
brainly.com/question/353543
#SPJ11
What are the five steps to managing innovation?
The five steps to managing innovation are:
1. Identifying the need for change
2. Generating new ideas
3. Evaluating and selecting ideas
4. Implementing ideas
5. Tracking results and revising.
The five steps to managing innovation are as follows:
1. Identify opportunities for innovation: This step involves looking for potential areas for improvement within your organization or industry, and determining where innovation could have the greatest impact.
2. Develop an innovation strategy: This step involves creating a plan for how you will approach innovation, including what types of innovation you will pursue, and how you will measure success.
3. Build an innovation team: This step involves assembling a team of individuals with the skills and experience necessary to execute your innovation strategy.
4. Implement the innovation: This step involves putting your innovation plan into action, and ensuring that all necessary resources are in place to support the implementation.
5. Monitor and measure the results: This step involves tracking the progress of your innovation efforts, and determining whether they are achieving the desired results.
In summary, the five steps to managing innovation are identifying opportunities, developing a strategy, building a team, implementing the innovation, and monitoring and measuring the results.
Here you can learn more about managing innovation https://brainly.com/question/6818113
#SPJ11
Why is it important to check that the capacity, repayment
comfortability and loan amount required are all aligned?
It is important to check that the capacity, repayment comfortability, and loan amount required are all aligned because it ensures that the borrower is able to repay the loan without any financial difficulties.
Firstly, the capacity refers to the borrower's ability to repay the loan. It is important to check the borrower's capacity to ensure that they have sufficient income to cover the loan repayments.
Secondly, the repayment comfortability refers to the borrower's ability to make the loan repayments without affecting their overall financial well-being.
It is important to check the borrower's repayment comfortability to ensure that they are able to comfortably make the loan repayments without any financial stress.
Lastly, the loan amount required refers to the amount of money that the borrower needs to borrow. It is important to check the loan amount required to ensure that the borrower is not borrowing more money than they need or can afford to repay.
In conclusion, checking that the capacity, repayment comfortability, and loan amount required are all aligned is important because it ensures that the borrower is able to repay the loan without any financial difficulties.
To know more about borrower's capacity click on below link:
https://brainly.com/question/29417815#
#SPJ11
A company's equity has beta 1.2. The risk-free rate is 3%, and the average return on the market portfolio is 7%. Answer the following questions:
The current dividend yield is 4%. Investors discount into the share price a sustainable growth rate in the dividend payments of g. What is your estimate of g?
The current payout ratio is 0.6, expected to remain constant in the foreseeable future. Next year the firm’s earnings per share are expected to be £10. What is the expected price per share next year?
Suppose the firm changes its payout ratio. Do you expect the share price to change due to the change in dividend policy?
The company's equity has a beta of 1.2, which means that it is more volatile than the market as a whole. The risk-free rate is 3%, and the average return on the market portfolio is 7%.
To estimate the sustainable growth rate in the dividend payments of g, we can use the Gordon Growth Model. The formula for this model is:
g = (1 - payout ratio) x ROE
In this case, the payout ratio is 0.6, and the ROE can be calculated as follows:
ROE = (dividend yield x price) / equity
ROE = (0.04 x price) / equity
ROE = 0.04 x (price / equity)
ROE = 0.04 x (1 / 1.2)
ROE = 0.0333
Therefore, the sustainable growth rate in the dividend payments of g is:
g = (1 - 0.6) x 0.0333
g = 0.01332
To calculate the expected price per share next year, we can use the Dividend Discount Model. The formula for this model is:
Price = (dividend / (discount rate - growth rate))
In this case, the dividend is 0.6 x £10 = £6, the discount rate is 0.07, and the growth rate is 0.01332.
Therefore, the expected price per share next year is:
Price = (£6 / (0.07 - 0.01332))
Price = £101.45
If the firm changes its payout ratio, the share price may change due to the change in dividend policy. This is because the payout ratio affects the sustainable growth rate in the dividend payments of g, which in turn affects the expected price per share next year.
If the payout ratio increases, the sustainable growth rate in the dividend payments of g will decrease, and the expected price per share next year will also decrease. Conversely, if the payout ratio decreases, the sustainable growth rate in the dividend payments of g will increase, and the expected price per share next year will also increase.
To know more about company equality, refer here:
https://brainly.com/question/29666483#
#SPJ11
Procter & Gamble (P&G) is the world’s largest consumer products company. Some of its category-defining brands include Ivory soap, Tide detergent, Crest toothpaste, and Pampers diapers. Among its many offerings, P&G has more than 20 consumer brands in its lineup that achieve over 66.8 billion dollars or three (3) trillion pesos in 2018. P&G’s iconic brands are a result of a clearly formulated and effectively implemented company strategy. The company pursues a strategy which attempts to create higher perceived value for its customers than its competitors by delivering products with unique features and attributes. Creating higher perceived value generally goes along with higher product costs due to greater innovation efforts and promotion expenses, among other things. Successful differentiators are able to command a premium price for their products, but they must also control their costs. In addition, the company was able to achieve its market leader position through its top management commitment that collaborates even with the lower-level managers in the company.
In recent years, however, P&G’s strategic position has weakened considerably and seems to be losing rather than winning. P&G lost market share in key "product-country combinations," including beauty in the United States and oral care in China, amid an overall lackluster performance in many emerging economies. As a consequence, profits have declined. P&G posted a sustained competitive advantage in recent years; its stock market valuation has fallen, while its competitors Unilever, Colgate-Palmolive, and Kimberly-Clark posted strong gains. Many wonders when P&G will play to win again.
Answer the following questions: (3 items x 10 points)
1. Which phase in the evolution of strategic management is present in the given case?
2. Which type of strategy is being employed by P&G based on the given case study?
3. How will P&G regain its market position based on the concept of competitive advantage?
1. The phase in the evolution of strategic management present in the given case is the differentiation phase.
2. The type of strategy being employed by P&G based on the given case study is a differentiation strategy.
3. P&G can regain its market position based on the concept of competitive advantage by focusing on innovation and differentiation.
P&G is attempting to create higher perceived value for its customers than its competitors by delivering products with unique features and attributes. This is a key aspect of the differentiation phase, as it involves creating products or services that are perceived as unique and valuable by customers.
This is evident from the company's focus on creating higher perceived value for its customers through unique features and attributes, as well as its efforts to control costs in order to maintain a competitive advantage.
This could involve investing in research and development to create new products or features that are unique and valuable to customers, as well as finding ways to reduce costs in order to maintain a competitive advantage.
For such more question on strategy:
https://brainly.com/question/25640993
#SPJ11
CASE STUDY
You have been hired as a data analyst by an organisation located in Sydney. Your main role is to finalise the process of data analysis and store the analytics results. The company has recently collected 3 sales and revenue sets of data from 3 different agencies.
Your first project is to analyse the data sets according to the organisation’s policies and procedures. Complete the following tasks to accomplish these purpose:
Questions:
A) The organisation has determined that they will only use one set of data. They have concluded that the set of data with the highest level of correlation between price and units sold is the most accurate. Your first task is to calculate the correlation coefficient for each set of data.
B) Analyse and explain in your own words the meaning of the correlation results obtained in Q1 and choose the set of data that corresponds to the organisation’s standard (highest correlation result).
Remove the other sets of data as they will be considered to be incorrect based on the organisation’s policy.
C) Once you have chosen the relevant set of data you are required to report and store the results. Complete the following tasks to accomplish this purpose:
a. Calculate the total Revenue.
b. Calculate the average Revenue.
c. Calculate the median.
d. Identify the maximum and the minimum revenue value.
e. Produce 2 different types of charts to report on Revenue.
f. Analyse and interpret the revenue results for this set of data. Provide recommendations.
A) Coefficient range -1 to +1
B) Closest to +1
C)
a. Add the total value of all sales
b. Divide the total Revenue by the number of sales
c. Rank all the values in the set of data
d. Sort the data from smallest to largest
e. Use bar charts, line graphs, pie charts
f. Consider trends, seasonality, relationships, and outliers
A) To calculate the correlation coefficient for each set of data, you will need to use statistical methods such as linear regression or correlation analysis. Linear regression measures the relationship between two variables by fitting a line that best describes the relationship. Correlation analysis measures how strong the relationship is between two variables by calculating the Pearson’s correlation coefficient. The Pearson’s correlation coefficient ranges from -1 to +1, and the higher the coefficient the stronger the correlation.
B) The correlation coefficient results indicate how strong the relationship is between the two variables (price and units sold). The set of data with the highest correlation coefficient (closest to +1) will be the most accurate according to the organisation’s standards, so that is the set of data that should be used. The other sets of data can then be removed as they will not meet the organisation’s standards.
C) To report and store the results, you will need to perform the following calculations:
a. To calculate the total Revenue, add the total value of all sales in the set of data.
b. To calculate the average Revenue, divide the total Revenue by the number of sales.
c. To calculate the median, rank all the values in the set of data from smallest to largest and then take the middle value.
d. To identify the maximum and the minimum revenue value, sort the data from smallest to largest, and the first value will be the minimum, and the last value will be the maximum.
e. To produce 2 different types of charts to report on Revenue, you can use bar charts, line graphs, pie charts, etc. to visually represent the data.
f. To analyse and interpret the revenue results, you should consider trends, seasonality, relationships, and outliers in the data. Based on this, you can provide recommendations for improvement or further actions.
Learn more about Case Study
brainly.com/question/24259426
#SPJ11
Cheeseburger and Taco Company purchases 12,885 boxes of cheese each year. It costs $25 to place and ship each order and $7.01 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.
What is the annual carrying costs of post card inventory.
Round the answer to two decimals.
The cost of Average inventory is 1062.58
What is Inventory?The products and materials that a company keeps on hand with the intention of reselling, producing, or using them are referred to as inventory or stock. The main focus of the discipline of inventory management is determining the location and shape of stocked products.
How to solve:
EOQ= Under root(2*A*O)/C
EOQ= Under root(2*12885*25)/7.01
EOQ= Under root(644250)/7.01
EOQ= Under root(91,904.42)
EOQ= 303.16
Average Inventory in units =303.16/2 = 151.58
Cost of Average inventory = 151.58*7.01 =1062.58
Read more about inventory here:
https://brainly.com/question/25947903
#SPJ1
difference between loan reviews and loan
workouts.
please answer this in a table
Loan reviews and loan workouts are two distinct processes in the lending industry.
Loan reviews involve evaluating a borrower's financial standing to determine their creditworthiness and ability to repay the loan. It is primarily focused on identifying potential risks associated with a loan and ensuring compliance with lending policies and procedures. On the other hand, loan workouts involve finding mutually agreeable solutions to help the borrower meet their financial obligations while minimizing the lender's losses.
This process may involve renegotiating the interest rate, extending the loan term, or reducing the principal balance. Loan workouts are a reactive measure taken by lenders to address borrowers' financial difficulties and avoid foreclosure.
See the attachment for the table.
Learn more about personal loans https://brainly.com/question/27142321
#SPJ11
How many years will it take Jack to pay off his debt of $5,700 at a simple rate of 8.5% and pay a total interest of $1,090? 7. Find the principal of a loan taken at 8% for 3 years when the total interest is $516. 8. What is the current value of a loan taken at 3% for 4 years if the interest paid is $1,350? 9. What is the current value of a loan taken at 7% for 5 years if the borrower has to pay a total of $11,500? 10. If you deposit $600 at a bank paying 44% simple interest, how much will you collect after 11 months? 11. If you want your balance to be $8,000 in 4 years and if you deposit your money at a bank paying 62%, how much is the initial deposit? 12. Find the amount of money that $700 would grow to if you leave it for 6 years at a bank paying 112% simple interest? 13. What is the rate of interest for Linda, who saved $2,500 in her havings account and collected $2,590 after 20 months?
Jack take to pay off his Principle loan 6.57 years. the personal loan is $3,883, The current value is $9,708, and the interest is 8.64%.
A1:The formula for calculating this is: N = [log (1+ (I/P) * P)]/ [log (1+ I/P)] where N is the number of years,
I is the total interest paid, and P is the principal amount.
In this case, N = [log (1+ (1090/5700) * 5700)]log (1+ 1090/5700)] = 6.57 years.
A7: The answer of principal loan is $3,883.
The formula for calculating this is: P = I/(1+R*T) where P is the principal,
I is the total interest, R is the rate of interest, and T is the term of the loan.
In this case, P = 516/(1+0.08*3) = $3,883.
A8: The answer is current value of the loan $12,272.
The formula for calculating this is: P = I/(R*T)
where P is the current value, I is the total interest, R is the rate of interest, and T is the term of the loan.
In this case, P = 1350/(0.03*4) = $12,272.
A9: The current value of the loan is $9,708.
The formula for calculating this is: P = I/(R*T)
where P is the current value, I is the total interest, R is the rate of interest, and T is the term of the loan.
In this case, P = 11,500/ (0.07*5) = $9,708.
A10: You will collect $904 after 11 months.
The formula for calculating this is: P (1 + R*T)
where P is the principal amount, R is the rate of interest, and T is the time period.
In this case, P (1 + 0.44*11) = $904.
A11: The initial deposit will be $3,719.
The formula for calculating this is: P = B/ (1 + R*T)
where P is the initial deposit, B is the balance, R is the rate of interest, and T is the time period.
In this case, P = 8,000/ (1 + 0.62*4) = $3,719.
A12: The amount of money will be $5,127.
The formula for calculating this is: P (1 + R*T)
where P is the principal amount, R is the rate of interest, and T is the time period.
In this case, P (1 + 1.12*6) = $5,127.
A13: The rate of interest for Linda is 8.64%.
The formula for calculating this is: R = [P(1+R*T)-P]/(P*T)
where P is the principal amount, R is the rate of interest, and T is the time period.
In this case, R = [2500(1+R*20)-2500]/(2500*20) = 0.0864, or 8.64%.
To more know about Principle loan, refer here:
https://brainly.com/question/28721434#
#SPJ11
All these statements are True except:
A. The difference between operating return on asset and the effective interest rate after tax is called the spread.
B. To compute the quick ratio, trade receivables are not included in current assets.
C. The return on operating asset is the product of the net operating profit margin and the operating asset turnover.
D. The asset Turnover is Total assets divided by equity Current ratios indicate short term debt paying ability of a firm.
The statement that is not true is D. The asset turnover is not calculated by dividing total assets by equity. The asset turnover is calculated by dividing sales by average total assets. Therefore, the correct answer is D.
Here is the correct definition of each term:
A. The spread is the difference between the operating return on asset and the effective interest rate after tax.
B. The quick ratio is calculated by subtracting inventories from current assets and then dividing by current liabilities. Trade receivables are included in current assets.
C. The return on operating asset is the product of the net operating profit margin and the operating asset turnover.
D. The asset turnover is calculated by dividing sales by average total assets. It is a measure of how efficiently a company is using its assets to generate sales.
So the correct answer is D. The asset Turnover is not calculated by dividing total assets by equity.
For such more question on asset
https://brainly.com/question/27972503
#SPJ11
AP 13-1 (Integration Example) Assume the following with respect to an individual shareholder of a wholly owned CCPC: • The corporation’s only income is active business income of $340,000, all of which quali-fes for the small business deduction The corporation has no GRIP and therefore all of the taxable dividends it pays will be non-eligible dividends. • The individual’s marginal federal tax rate is 33% and his marginal provincial tax rate is 15%. • The provincial dividend tax credit on non-eligible dividends is equal to 34% of the gross up. • The combined federal and provincial corporate tax rate on business income is 12.0%. Required: Indicate, using these assumptions, whether integration is working perfectly and whether it is benefcial to use a corporation to earn the company’s active business income in this instance. Show all supporting calculations, including both the income tax comparison and after-tax return comparison of (1) the individual earning the income directly without the use of a corporation and (2) earning the income through a corporation and distributing all of the after-tax corporate income as a non-eligible dividend to the sole individual shareholder. If integration is not working properly, briefy explain why.
Using the given assumptions, integration is not working perfectly as the after-tax return is lower when earning the income through a corporation compared to earning the income directly without the use of a corporation.
To determine whether integration is working perfectly and whether it is beneficial to use a corporation to earn the company's active business income in this instance, we need to compare the income tax and after-tax return of earning the income directly without the use of a corporation versus earning the income through a corporation and distributing all of the after-tax corporate income as a non-eligible dividend to the sole individual shareholder.
1) Earning the income directly without the use of a corporation:
The individual's marginal federal tax rate is 33% and his marginal provincial tax rate is 15%, so the combined tax rate is 48%.
The individual's income tax on $340,000 would be $163,200 ($340,000 x 48%).
The individual's after-tax return would be $176,800 ($340,000 - $163,200).
2) Earning the income through a corporation and distributing all of the after-tax corporate income as a non-eligible dividend to the sole individual shareholder:
The combined federal and provincial corporate tax rate on business income is 12.0%, so the corporation's income tax on $340,000 would be $40,800 ($340,000 x 12.0%).
The corporation's after-tax income would be $299,200 ($340,000 - $40,800).
The individual would receive a non-eligible dividend of $299,200.
The gross-up on the non-eligible dividend is 15%, so the individual's taxable income would be $344,080 ($299,200 x 1.15).
The individual's income tax on the grossed-up dividend would be $165,158.40 ($344,080 x 48%).
The provincial dividend tax credit on non-eligible dividends is equal to 34% of the gross up, so the individual would receive a tax credit of $14,463.60 ($299,200 x 15% x 34%).
The individual's net income tax on the dividend would be $150,694.80 ($165,158.40 - $14,463.60).
The individual's after-tax return would be $148,505.20 ($299,200 - $150,694.80).
Based on these calculations, it appears that integration is not working perfectly in this instance, as the individual's after-tax return is lower when earning the income through a corporation and distributing all of the after-tax corporate income as a non-eligible dividend ($148,505.20) compared to earning the income directly without the use of a corporation ($176,800). This is due to the fact that the individual's marginal tax rate on the non-eligible dividend is higher than the combined corporate tax rate, and the provincial dividend tax credit is not sufficient to offset this difference.
Learn more about Integration:
https://brainly.com/question/26505535
#SPJ11
Match the different stages of the consumer buying process with the related scenarios where advertising helps with the stage.
search for information
comparative evaluation
choice and purchase
post-purchase evaluation
Ali reaches an area where there are many
restaurants, and one has ads displayed
in their parking lots.
arrowRight
Ali thinks about the last time he ate at a
particular restaurant. It was a bad
experience, and he’d decided he would
try a different restaurant next time.
arrowRight
Ali goes into a restaurant and checks out
the different dishes available on the menu
and orders his food.
arrowRight
Ali sees an ad showing that a restaurant
near his house serves the kind of tacos
he likes.
arrowRight
The different stages of the consumer buying process with the related scenarios where advertising helps with the stage are Ali sees an ad showing that a restaurant near his house serves the kind of tacos, he likes it is search for information.
Ali reaches an area where there are many restaurants, and one has ads displayed in their parking lots. It is comparative evaluations.
Ali goes into a restaurant and checks out the different dishes available on the menu and orders his food. It is choice and purchase.
Ali thinks about the last time he ate at a particular restaurant. It was a bad experience, and he’d decided he would try a different restaurant next time. It is post-purchase evaluation.
What is consumer buying process?
Comparative analysis aids decision-makers in choosing the best choice from a range of options in the business world. Business executives must decide on major expenditures, hiring options, and marketing plans. Comparative research techniques contrast the advantages and disadvantages of each potential option.
Know more about comparative evaluations - brainly.com/question/15092412
#SPJ1
Thornley Machines is considering a 3-year project with an initial cost of $618,000. The project will not directly produce any sales but will reduce operating costs by $265,000 a year. The equipment is depreciated straight-line to a zero book value over the life of the project. At the end of the project the equipment will be sold for an estimated $60,000. The tax rate is 34%. The project will require $23,000 in extra inventory for spare parts and accessories. Should this project be implemented if Thornley's requires a 9% rate of return? Why or why not?
The NPV is positive, the project should be implemented. It will provide a return that is greater than the required rate of return of 9%.
To determine whether the project should be implemented, we need to calculate the net present value (NPV) of the project and compare it to the required rate of return. The NPV is the present value of the expected cash flows from the project, minus the initial cost. If the NPV is positive, then the project should be implemented.
Initial cost: $618,000
Annual cost savings: $265,000
Depreciation: $618,000 / 3 = $206,000 per year
Salvage value: $60,000
Tax rate: 34%
Required rate of return: 9%
Year 0:
- Initial cost: -$618,000
- Extra inventory: -$23,000
Total cash flow for year 0: -$641,000
Year 1:
- Cost savings: $265,000
- Depreciation: -$206,000
- Taxes: (265,000 - 206,000) * 0.34 = -$20,060
Total cash flow for year 1: $38,940
Year 2:
- Cost savings: $265,000
- Depreciation: -$206,000
- Taxes: (265,000 - 206,000) * 0.34 = -$20,060
Total cash flow for year 2: $38,940
Year 3:
- Cost savings: $265,000
- Depreciation: -$206,000
- Salvage value: $60,000
- Taxes: (265,000 - 206,000 + 60,000) * 0.34 = -$40,180
Total cash flow for year 3: $78,820
NPV = -$641,000 + ($38,940 / 1.09) + ($38,940 / 1.09^2) + ($78,820 / 1.09^3) = $3,140.29
Since the NPV is positive, the project should be implemented. It will provide a return that is greater than the required rate of return of 9%.
For such more question on rate:
https://brainly.com/question/25811981
#SPJ11
Engineering Management Subject:400 words insight on "Eat that frog!21 Great Ways toStop Procrastinating and Get More Done in Less Time by BrianTracy"
"Eat That Frog! 21 Great Ways to Stop Procrastinating and Get More Done in Less Time" is a self-help book written by Brian Tracy. The book offers practical and straightforward advice on how to overcome procrastination and increase productivity.
Tracy uses the analogy of a frog to represent the most important and challenging task that we need to complete each day. By "eating the frog" first thing in the morning, we can avoid procrastination and achieve our goals more efficiently.
One of the key concepts in the book is the importance of setting clear and specific goals. Tracy argues that by knowing exactly what we want to achieve, we can create a plan of action and stay focused on our objectives. He also emphasizes the importance of breaking down larger goals into smaller, more manageable tasks. By doing so, we can make consistent progress and avoid feeling overwhelmed.
Tracy also discusses the importance of time management and offers tips for maximizing productivity. For example, he recommends using the "Pareto Principle," which states that 80% of our results come from 20% of our efforts. By identifying the 20% of tasks that are most important and focusing our efforts on those tasks, we can achieve greater results with less effort.
For such more question on productivity:
https://brainly.com/question/30421900
#SPJ11
BID ASK Time Trader Size Price Price Size Trader Time 09:55 HSU 300 3.30 3.60 200 CUH 09:15 10:09 CTU 200 3.10 3.90 500 HKU 09:30 09:45 PLU 600 2.85 4.10 300 MPU 10:00 10:05 UST 500 2.65 4.25 100 BUH 09:58 No.# Time Trades or Orders 1 10:15 2 10:20 3 10:27 4 10:30 5 10:35 A market order to buy 300 shares A market order to sell 200 shares A limit order to buy 500 shares at $3.00 A limit order to sell 300 shares at $3.90 The limit order to buy at $3.10 was all cancelled A market order to sell 300 shares. This triggered a stop loss sell order of 300 shares at $3.00 A limit order to buy 500 shares at $3.20 6 10:38 7 10:38 8 10:39
(A) If you execute a market buy order of 400 shares of ABC, how much in total will you pay (ignore all other costs)? What is the average price per share you buy? What are the best market price and quantity immediately following your action?
(B) Suppose you have purchased 300 shares of ABC previously at a cost of $3.00 per share. If the maximum amount you are willing to lose for this investment is 20%, suggest a kind of order you will use for this purpose, with reference to the current market condition as depicted in the table above. (Give the type of order: market/limit/stop loss; buy/sell; and price)
(C) Suppose you have short sold 200 shares of ABC previously at a cost price of $4.60 per share. If you intend to have a minimum return of 20% for this investment, suggest a kind of order you will use for this purpose, with reference to the current market condition as depicted in the table above. (Give the type of order: market/limit/stop loss; buy/sell; and price)
(D) Suppose right now, one of your clients requests to buy 800 shares of ABC "by the end of the trading day". There are two possible strategies you may take to handle this order: use a market order or use a limit order. Explain a. How would you use market order in this case? What will be the result? What are the pros and cons of using market order in this case. b. How would you use limit order in this case? What will be the result? What are the pros and cons of using limit order in this case.
A) The average price per share your buy is $3.20
B) You can use a stop loss sell order at $2.40.
C) You can use a limit buy order at $3.68.
D) You can use either a market order or a also can limit any order.
(A) If you execute a market buy order of 400 shares of ABC, you will pay a total of $1,280 (200 shares at $3.60 and 200 shares at $3.90). The average price per share you buy is $3.20 ($1,280/400 shares).
The best market price immediately following your action is $3.90 for 300 shares (from the limit order by MPU at 10:00) and the best quantity is 300 shares.
(B) If you have purchased 300 shares of ABC previously at a cost of $3.00 per share and the maximum amount you are willing to lose for this investment is 20%, you can use a stop loss sell order at $2.40 (20% below $3.00) to protect your investment.
This will ensure that if the price of ABC drops to $2.40 or below, your shares will be automatically sold at the best available price, minimizing your loss.
(C) If you have short sold 200 shares of ABC previously at a cost price of $4.60 per share and you intend to have a minimum return of 20% for this investment, you can use a limit buy order at $3.68 (20% below $4.60) to cover your short position.
This will ensure that if the price of ABC drops to $3.68 or below, you will buy back the shares at the best available price, locking in your profit.
(D) If one of your clients requests to buy 800 shares of ABC "by the end of the trading day", you can use either a market order or a limit order.
To know more about market price click on below link:
https://brainly.com/question/17205622#
#SPJ11
If a lender makes a simple loan of $700 for 5 years and charges 3%, then the amount that the lender receive at maturity is $__ (Round your response tothe nearest two decimal place). If a lender makes a simple loan of $1500 for one year and charges $130 interest, then the simple interest rate on that loan is__ % (Round your response to the nearest whole number) If a borrower must repay $106.50 one year from today in order to receive a simple loan of $100 today, the simple interest on this loan is A. 6.5% B. 6.0% C. 5.0% D. 65%
The first part of the question asks for the amount that the lender will receive at maturity for a simple loan of $700 for 5 years at 3% interest.
To calculate this, we can use the formula for simple interest:
I = Prt
Where I is the interest, P is the principal, r is the interest rate, and t is the time in years. Plugging in the given values:
I = (700)(0.03)(5) = 105
The amount that the lender will receive at maturity is the principal plus the interest, so:
A = P + I = 700 + 105 = $805
Therefore, the lender will receive $805 at maturity.
The second part of the question asks for the simple interest rate on a loan of $1500 for one year with $130 interest. We can use the same formula and rearrange it to solve for the interest rate:
r = I / (Pt) = 130 / (1500)(1) = 0.08667
Converting this to a percentage and rounding to the nearest whole number:
r = 0.08667 * 100 = 8.67 ≈ 9%
Therefore, the simple interest rate on that loan is 9%.
The third part of the question asks for the simple interest on a loan of $100 for one year with a repayment of $106.50. The interest is the difference between the repayment amount and the principal:
I = A - P = 106.50 - 100 = $6.50
To find the simple interest rate, we can use the same formula and rearrange it to solve for the interest rate:
r = I / (Pt) = 6.50 / (100)(1) = 0.065
Converting this to a percentage:
r = 0.065 * 100 = 6.5%
Therefore, the simple interest on this loan is 6.5%, or answer choice A.
For more question on loan click on
https://brainly.com/question/20688650
#SPJ11
How much of the total did Raul contribute himself
1. The total balance in the account after 40 years would be $192,520.
What is balance?Balance is a fundamental concept in a wide range of disciplines, including physics, biology, finance, and psychology. It refers to the ability to maintain equilibrium or stability, and the ability to adapt and adjust when faced with external challenges. Balance is achieved by creating internal stability and harmony, and by avoiding extremes and unnecessary risks. In physical terms, balance is achieved when the forces acting on a system are equal and opposite.
2. Raul contributed $120,000 himself.
3. Raul made $92,520 through compound interest in the savings account.
4. Raul could have increased the total amount of money he made over the 40 years by investing his money instead of keeping it in a savings account. Investing has the potential to earn higher returns than a savings account and has the potential to increase the total amount of money made over the 40 years.
To learn more about balance
https://brainly.com/question/29310271
#SPJ1
Complete Question:
Raul Raul is a saver. He sets aside $100 per month during his career of 40 years to prepare for retirement. He does not like the idea of investing because he prefers to minimize his risk as much as possible, so he puts his money in a savings account which earns 1.596 interest per year 1. What is the total balance in 2. How much of the total did 3. How much money did Raul the account after 40 years? Raul contribute himself? make through compound interest in this savings account? N 4. Identify one way Raul could have increased the total amount of money he made over the 40 years. Explain your reasoning.