1. (Expected rate of return and risk) B.J Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 4.6 percent. Calculate the investment’s expected return and its standard deviation should Gautney invest in this security?

Probability

Return

0.05

-4%

0.45

1%

0.45

7%

0.05

9%

1. The investments expected return is ……. %

1. (Expected rate of return) James Fromholtz is considering whether to invest in a newly formed investment fund. The fund’s investment objective is to acquire home mortgage securities at what it hopes will be bargain prices. The fund sponsor has suggested to James that the fund’s performance will hinge on how the national economy performs in the coming year. Specifically, he suggested the following outcomes:

1. Based on these potential outcomes, what is your estimate of the expected rate of return from this investment opportunity?

2. Would you be interested in making such an investment? Note that you lose all your money in one year if the economy collapses into the worst state or you double your money if the economy enters into a rapid expansion

1. The expected rate of return from this investment opportunity is ……. %

State of Economy

Probability

Fund Return

Rapid expansion and recovery

10%

100%

Modest growth

35%

40%

Continued recession

45%

20%

Falls into depression

10%

-100%

1. (Expected rate of return) James Fromholtz is considering whether to invest in a newly formed investment fund. The fund’s investment objective is to acquire home mortgage securities at what it hopes will be bargain prices. The fund sponsor has suggested to James that the fund’s performance will hinge on how the national economy performs in the coming year. Specifically, he suggested the following outcomes:

                                                       Data Table

State of Economy

Probability

Fund Return

Rapid expansion and recovery

10%

100%

Modest growth

35%

45%

Continued recession

50%

20%

Falls into depression

10%

-100%

1. Based on these potential outcomes, what is your estimate of the expected rate of return from this investment opportunity?

2. Calculate the standard deviation in the anticipated return found in part a.

3. Could you be interested in making such an investment? Note that you lose all your money in one year if the economy collapses into the worst state or you double your money if the economy enter into a rapid expansion

   EXPECTED Rate of RETURN from this investment opportunity is =

Inflationary expectations are important because widespread changes in inflationary expectations affect?

• A. The distribution of income.
• B. Relative prices.
• C. Actual inflation.
• D. Unexpected inflation

8) Walker & Campsey wants to invest in a new computer system, and management has narrowed the choice to Systems A and B.

System A requires an up-front cost of $125,000, after which it generates positive after-tax cash flows of $80,000 at the end of each of the next 2 years. The system could be replaced every 2 years, and the cash inflows and outflows would remain the same.

System B also requires an up-front cost of $125,000, after which it would generate positive after-tax cash flows of $60,000 at the end of each of the next 3 years. System B can be replaced every 3 years, but each time the system is replaced, both the cash outflows and cash inflows would increase by 5%.

The company needs a computer system for 6 years, after which the current owners plan to retire and liquidate the firm. The company’s cost of capital is 12%. What is the NPV (on a 6-year extended basis) of the system that adds the most value? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

9) Using the information from problem 8 on Walker & Campsey, what is the equivalent annual annuity (EAA) for System A? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

PROFESSIONAL PRESENCE:

Profession: ACCOUNTING

Search using individual internet research and complete an essay (in at least 400 words), that investigates a cultural group in your desired field. Describe what the industry group is like in your own words with support from any outside source information you have found. Be sure to cite and reference in APA format any outside sources you have used.

The guide below will assist you in structuring your paper:

For this Assignment, you must focus on an industry (profession) culture. For example, lawyer, teacher, police officer, paralegal, psychologist, nurse, administrator, etc.

Below is a clarification of the areas you should focus on for researching your industry (profession) culture for the Unit 7 Assignment.

• Language and Behaviors
  • Language would focus on these elements in terms of an industry culture. For example, is there a special vocabulary or terminology used for the profession?
  • Behaviors – For example, what type of demeanor is expected? Are there body language expectations?
• Attitudes and Beliefs
  • What are the main ethics rules of the profession?
  • What beliefs does the profession focus on as a whole?
• Values and Interest
  • What are the core values of the profession?
  • How does this support the attitudes and beliefs of the profession?
• Education and Trainings
  • What types of trainings or certifications are needed to continue in the profession?
  • Are you required to have a specific level of college degree?
  • Do you need to renew a license or certification every several years?
• Tools and Equipment used
  • What types of tools and/or equipment are required for the job?
  • Do you need training to use these?
• Interactions with others
  • What other groups will you interact with in the workplace? How will you need to interact with others in the workplace?

Be sure to include a brief introduction and conclusion to the paper. The paper should follow APA formatting guidelines. In addition, research from outside sources to support your work is a required component of this Assignment.

INTERMEDIATE ACCOUNTING- UNIT  7 WILEY PLUS ASSIGNMENT

Lance Berkman is the controller of Saturn, a dance club whose year-end is December 31. Berkman prepares checks for suppliers in December, makes the proper journal entries, and posts them to the appropriate accounts in that month. However, he holds on to the checks and mails them to the suppliers in January. Requirement: 1. What financial ratio(s) most affected by the action? 2. What is Berkman’s purpose in undertaking this activity?