Answer:
The correct Answer Is C,
Explanation:
I got It Right :)
A- The net earnings of the individual in question will be $710000 after the individual's claim for loss by fire is settled by the insurance company. B- Yes, he would buy the insurance if he were risk neutral.
C- Yes, the individual will buy the insurance policy if he were a expected utility maximizer as he would want to claim complete settlement of this amount to be claimed in case of fire loss.
The expected net earnings from the insurance after deducting the amount from the premium paid and total claim endorsed by the insurance company will be $710000 which can be shown as below
[tex]\rm Net\ earnings= claim\ received - premium\ of\ policy[/tex]
[tex]\rm Net\ earnings= 750000-40000[/tex]
We get,
[tex]\rm Net\ earnings= 710000[/tex]
If the individual were risk neutral he would like to take the insurance as the risk of fire in the example given above is 0.5 which is greater than zero and this ultimately implies that risk cannot be taken.In the case if the individual is expected utility maximizer he would take the insurance as it would not only give him the claims from losses due to fire but also help him secure his house against beta of fire.
Hence, the correct answers will be A- $710000; B- Yes.; C- Yes. and imply that taking insurance will be a wise decision by the individual.
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Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 7% compounded monthly, with monthly payments. After 5 years of payments, Ann can refinance the balance into a 25 year Fully Amortizing FRM at an annual interest rate of 6% compounded monthly, with monthly payments. Refinancing will cost Ann 1 point and $1, 500 in closing costs.If Ann refinances into this loan and makes payments for 25 years, what will be her annualized IRR from refinancing?
Based on the information given what will be her annualized IRR from refinancing is 64.799%.
First step is to calculate the PMT
PMT=PV× rate/[1-(1+rate)^time
PMT=$1,000,000×0.07/12÷[1-(1+0.07/12)^30×12
PMT=$1,000,000×0.07/12÷[1-(1+0.07/12)^360
PMT=$1,000,000×0.005833333÷[1-(1+0.005833333)^360
PMT=$5,833.333÷[1-(1.005833333)^360
PMT=$6,653.02
Second step is to calculate the present value (PV) after 5 years
PV=PMT×[1-(1+rate)^time/rate
PV=$6,653.02×1-(1+0.07/12)^25×12÷0.07/12
PV=$6,653.02×1-(1+0.07/12)^300÷0.07/12
PV=$6,653.02×1-(1+0.005833333)^300÷0.005833333
PV=$6,653.02×1-(1.005833333)^300÷0.005833333
PV=$941,315.20
Third step is to compute PMT for refinancing when rate is 6%
PMT=PV× rate/[1-(+rate)^time
PMT=$941,315.20×0.06/12÷[1-(1+0.06/12)^360
PMT=$941,315.20×0.005÷[1-(1+0.005)^360
PMT=$4,706.576÷[1-(1.005)^360
PMT=$6,063.72
Third step is to calculate the monthly savings
Monthly savings=$6,653.02-$6,063.72
Monthly savings=$589.30
Fourth step is to calculate the Cost of refinancing
Cost of refinancing=1%×$941,315.20+$1,500
Cost of refinancing=$9,413.152+$1,500
Cost of refinancing=$10,913.152
Fifth step is to calculate the IRR
PMT savings=Cost of refinancing ×IRR÷[1-(1+IRR)^time
$589.30=$10,913.152×IRR÷[1(1+IRR)^300
Monthly IRR=5.3999%
Annualized IRR=5.3999%×12 months
Annualized IRR=64.799%
Inconclusion what will be her annualized IRR from refinancing is 64.799%.
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If you wish to enter the field of soil and
forest conservation, what kind of
educational goal should you attain?
A. High school diploma
B. 2 year associate degree
C. 4 year college degree
D. Doctorate degree
4 year college degree is the minimum educational goal to attain if one wish to enter the field of soil and forest conservation.
The 4 year college degree is tantamount to the Bachelor degree achieved from University, college etc.
Usually, the position of forestry and related job requires the minimum of Bachelor degree from related course in the field of soil and forest conservation.
Hence, the 4 year college degree is the minimum educational goal to attain if one wish to enter the field of soil and forest conservation.
Therefore, the Option C is correct.
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which situation would normally involve long-term financing?
As a multinational corporation, Starbucks is able to
A establish coffee prices for all companies
B lower product standards
C sell coffee only in the United States
D sell coffee to other parts of the world
As a multinational corporation, Starbucks can D. sell coffee to other parts of the world.
Characteristics of a multinational corporation: It is registered and has business operations in more than one country.For example, Starbucks has its headquarters in the U.S.It can operate wholly or partially owned subsidiaries in other countries.Sell its franchise to other companies using its brand name.
Starbucks may not establish coffee prices for all companies or lower product standards, or sell coffee only in the United States.
Thus, Starbucks can sell coffee to other parts of the world.
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Answer: d
Explanation:
What are the issues of integrity, ethics and law posed in the case study? What options does the woman have, and what should she do and why?
The integrity, ethics, and law issues raised in the case study are illegal and unethical conduct.
The woman must reject the economic proposal made by the company and maintain her complaint so that the executive is judged for what she did because she would avoid future harm to other employees.
What is ethics?
Ethics is a term that refers to moral philosophy. This focuses on the study of human behavior based on right and wrong according to duty. Contemporary ethics is usually divided into three branches which are:
Metaethics studies the origin, nature, and meaning of ethical concepts. Normative ethics seeks norms or standards to regulate human conduct. Applied ethics examines specific ethical controversies.According to the above, it can be inferred that the situation presented is an example of an unethical and illegal act because the company and the executive want to bribe the employee to prevent the executive from being removed from his position and the company from being judged for endorsing that conduct of the executive.
Note: The question is incomplete because the information is missing. Here is the complete information:
Case study 4
A woman is sexually harassed by a top-level senior executive in a large company. She sues the company, and during settlement discussions she is offered an extremely large monetary settlement. In the agreement, the woman is required to confirm that the executive did nothing wrong, and after the agreement is signed the woman is prohibited from discussing anything about the incident publicly. Before the date scheduled to sign the settlement agreement, the woman's lawyer mentions that she has heard the executive has done this before, and the settlement amount is very large because the company probably had a legal obligation to dismiss the executive previously. The company however wants to keep the executive because he is a big money maker for the company.
What are the issues of integrity, ethics and law posed in the case study? What options does the woman have, and what should she do and why?
Lecturer Guidelines
Some of the issues raised by this case study include initial issues of unethical and unlawful conduct, by the executive and the company; whether the company should allow the executive to continue working because of the revenue he generates, in view of his propensity to harm co-workers, and whether this action is ethical or reflects integrity; whether the company should require the woman to state that the executive did nothing wrong as part of the settlement agreement; whether the woman should agree to this settlement in view of the harm future employees are being exposed to; and whether the woman is prioritising justice for herself over harm to future employees in an acceptable way.
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The process of packing 316 ounce bottles of Hershey chocolate syrup in super size packages like those sold at Sam’s and Costco is an example of what type of packaging… Is it adaptive packaging allocating sorting out accumulating or accruing
The chocolate syrup in super size packages is an example of accumulating type of packaging
Basically, packaging refers to the process of boxing or wrapping a product is offered for sale.
Accumulating packaging is the type of packaging described in the question.
Majority of accumulating package in factory are done by automated machines.
In conclusion, the chocolate syrup in super size packages is an example of accumulating type of packaging
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A large St. Louis feed mill, Robert Orwig Processing, prepares its 6-month aggregate plan by forecasting demand for 50-pound bags of cattle feed as follows: January, 1,000 bags; February, 1,200; March, 1,250; April, 1,450; May, 1,400; and June, 1,400. The feed mill plans to begin the new year with no inventory left over from the previous year, and backorders are not permit ted. It projects that capacity (during regular hours) for producing bags of feed will remain constant at 800 until the end of April, and then increase to 1,100 bags per month when a planned expansion is completed on May 1. Overtime capacity is set at 300 bags per month until the expansion, at which time it will increase to 400 bags per month. A friendly competitor in Sioux City, Iowa, is also available as a backup source to meet demand—but can provide only 500 bags total during the 6-month period. Develop a 6-month production plan for the feed mill using the transportation method
Regular-time cost per bag (until April 30) $12.00
Regular-time cost per bag (after May 1) $11.00
Overtime cost per bag (during entire period) $16.00
Cost of outside purchase per bag $18.50
Carrying cost per bag per month $ 1.00
From the production plan, the budget for January is $12800, February, $16250, March $17175, April $20875, May $16900, and June $16900.
Production planning simply means the act of designing a guide for the production of a particular good or service.
It should be noted that production planning is important to ensure that all necessary preparation is completed before the start of a production cycle.
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StylesQuestion 12 (Essay Worth 4 points)
(02.04 MC)
Which two investment options would be best if you are 45 years old, just starting to save, and want to retire when you are 65? Consider the kind of investment,
of return, level of risk, and other factors
Answer:
forex
Explanation:
HELP PLS
Which of the following is a explain a job responsibility for an engineer in a manufacturing plant.
A: Creating product designs
B: inspecting products
C: repairing machinery
D: supervising mechanics
Answer:
The answer is AExplanation:
I know my answer is very late but imp leaving this here for whoever needs it. Engineers make the actual machinery designs and test them. Therefore the answer is A. If my answer is incorrect I am sorry.
Jack is a 74-year-old, single taxpayer whose income consists of $10,000 in wages and $31,000 in social security benefits. The maximum amount he can contribute to a Roth IRA for 2019 is: A) $0 B) $6,000 C) $7,000 D) $10,000
Based on his age and income, the maximum that Jack is able to contribute to a Roth IRA in 2019 is C. 7,000.
In the year 2019, tax laws were such that:
$6,000 was the maximum to be contributed to Roth IRA. $1,000 could be contributed in excess by those above the age of 50.As Jack is above the age of 50, he can contribute an extra $1,000 over the limit which puts him at:
= 6,000 + 1,000
= $7,000
In conclusion, Jack can contribute a maximum of $7,000.
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Holly's salary is $80,000 per year. She contributes 10% of her salary to her 401(k) plan. Her employer contributes 5% of her salary to a profit share plan. She also contributes $2,500 per year to an IRA. Holly's savings ratio is
Based on the amount that Holly contributes per year, her savings ratio can be said to be 18.1%.
Savings RatioPercentage of annual salary that is contributed to retirement funds. Includes savings made by employer.Holly's savings are:
= (10% + 5%) of salary + Contribution to IRA
= (15% X 80,000) + 2,500
= $14,500
Savings ratio is:
= Savings / Annual salary
= 14,500 / 80,000
= 18.1%
In conclusion, savings ratio is 18.1%.
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is the value of all goods in an economy using current prices during the year that they were produced
Nominal gross domestic production is the value of all goods in an economy using current prices during the year that they were produced.
What is nominal gross domestic production?This is the value of all goods and services an economy produces, which is done evaluating the GDP at current market prices.
Here, there is no adjustment for inflation in nominal gross domestic production.
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Mean for in grouped data
Answer:
To calculate the mean of grouped data, the first step is to determine the midpoint of each interval or class. These midpoints must then be multiplied by the frequencies of the corresponding classes. The sum of the products divided by the total number of values will be the value of the mean.