Explain prime rate

Q: Find expected return for G.

A: Expected Return is the amount of loss or profit an investor expects to receive on an investment.

Q: You just paid $351, 000 for a policy that will pay you and your heirs $12, 300 a year forever. What…

A: In this question we require to compute the rate of return from below details : Price paid for policy…

Q: Tim purchased a bounce house one year ago for $6,500. During the year it generated $4,000 in cash…

A: Given details are : Purchase price of house = $6500 Cash flow during the year form the house = $4000…

Q: Define the term internal rate of return?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: What is horizon value?

A: Horizon value is the value of the project or the security at the end of a specified future date. The…

Q: What is the internal rate of return?

A: Internal rate of return is the discount rate at which present value of cash inflows equals outflows…

Q: Explain NAREIT Index?

A: NAREIT Index Rate: It implies the compound dividend yield which is communicated as far as a yearly…

Q: Explain HPRs and Inflation?

A: Answer: Holding period returns (HPRs): Holding period return (HPR) is one of the investment…

Q: ffective rate?

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: Year Year Year Year Today 1 2 3 4 $200 $300 $800 $500 $30 Payment Schedule Today: -$200 Year 1:…

A: Given information: Payment today is -$200 Year 1 payment is -$300 Year 2 payment is $800 Year 3…

Q: McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $815 per set and…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: Explain real rate of return

A: This is the raw rate of return adjusted with inflation. It is used to ascertain the effective return…

Q: What is internal rate of return (IRR) method?

A: NPV shows the excess of PV of all the cash inflows over the initial outlay of the project. It is a…

Q: Explain expected rate of return

A: Return: Return is defined as the money attained or lost on an investment through certain time…

Q: Describe the Methods for Finding Rate of Return?

A: Capital budgeting is the process a company follows to decide whether to purchase a fixed asset or…

Q: What is the expected spot rate?

A: A spot rate is a price quoted for immediate settlement on an interest rate, commodity, security, or…

Q: GIVEN VALUES 2021 2022 2023 2024 492,000 504,300 Gross Sales of PET bottles at 480,000 1.50 (P) Cost…

A: Rate of Return - Rate of Return is calculated as follows - = Operating Profit / Net Sales…

Q: Solve using Rate of Return Method

A: The rate of return method or ROR method is the return which can either be in the form of gain or…

Q: Define the term Rate of Return?

A: Rate of Return:It means the benefit that is derived from the investment, benefit may be in terms of…

Q: Date 8/1/23 Adj Date TSLA Return AMZN Return MCD Return Risk-Free S&P 500 Return TSLA excess r AMZN…

A: TSLA return-3.50%AMZN return3.24%MCD return-3.63%Risk free0.45%S&P return-4.87%

Q: Explain realized rate of return

A: The return generated by an investment is any asset class is the normalized rate of return. When the…

Q: What is the rate of return when 35 shares of Stock A, purchased for $20/share, are sold for $815?…

A: Rate of Return = Total Profit / Purchase cost of shares

Q: Explain an example how to calculate internal rate of return.

A: IRR is the return actually earned by the investor and discount rate is the return which the investor…