The profit for the retailer in option 1 will be $0 and The profit for the retailer in option 2 will be $0 and the supply chain's total profit will be $5000.
Let's calculate the optimal quantity that the retailer orders for the two given options, followed by calculating the profit for each option:
Option 1: Profit function: p1(q) = 19q - 15q - 1000 - 1q = 3q - 1000
The profit will be maximized when p1'(q) = 0.=> p1'(q) = 3 => q1* = 333.33
Since the demand is N(1000, 250), it means that the expected demand is 1000 toys. So, the retailer will order 334 toys. The profit for the retailer will be:p1(q1*) = 3(333.33) - 1000 = $0
Option 2: Profit function: p2(q) = 22q - 15q = 7qThe profit will be maximized when p2'(q) = 0.=> p2'(q) = 7 => q2* = 0 Since the demand is N(1000, 250), it means that the expected demand is 1000 toys. However, the retailer will not order any toys.
The profit for the retailer will be:p2(q2*) = 7(0) = $0Hence, it is better for the retailer to choose option 1, which will result in a profit of $0 for the retailer. Therefore, the supply chain's total profit for option 1 will be $5000 ($1000 + $4000).
Note that the manufacturer's profit is $4 per toy ($19 - $15), and the total cost of unsold toys will be $334($19 - $16) = $1006. The manufacturer's total profit will be 1000($4) - $1006 = $2994.
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To calculate the expected return for an investment, you need to know
a. the rates of return over many years.
b. the actual return.
c. the potential or projected return.
d. a. and b.
e. a., b., and c.
To calculate the expected return for an investment, you need to know c. the potential or projected return.
Expected return refers to the profits or losses one can expect to receive from an investment over a certain time. It is a statistical measure that calculates the potential return an investor will get from an investment, factoring in the investment's possible returns and the chances of achieving them. For example, an investor may use an investment's average expected return to decide whether it is worth investing in the business.
An investor will expect to receive the investment's expected rate of return if the investment meets their standards. An investment's expected return depends on its type, and investors can use a variety of measures to calculate it. These methods range from basic measures to sophisticated mathematical techniques.
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The Equity Risk Premium is:
a. never positive.
b. the risk-free rate less the expected return of a stock.
c. the expected return of a stock less the risk free rate.
d. always positive.
The answer to the given question is option (c) the expected return of a stock less the risk-free rate.
The Equity Risk Premium is defined as the excess return that a stock or the stock market provides over a risk-free rate, usually long-term government bonds. Equity risk premium is an additional return earned by an investor when investing in the equity market over and above the risk-free rate.
This additional return is provided for taking on the higher risk associated with equities as an asset class over bonds or government securities. Equity risk premium is the excess return that an investment provides to the investors over and above the risk-free rate of return. The formula to calculate Equity Risk Premium (ERP) is ERP = Expected Return on the Stock – Risk-Free Rate of Return.
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you're trying to save to buy a new $206,000 ferrari. you have $56,000 today that can be invested at your bank. the bank pays 6.4 percent annual interest on its accounts. how long will it be before you have enough to buy the car?
You will take approximately 16.21 years to save enough to buy the car at an annual interest rate of 6.4%.
To calculate the duration before you can afford to buy the Ferrari, we can use the time value of money concept.
Present Value (PV) is $56,000, and we want to find Future Value (FV) of the money invested.
We will use the formula for Future Value as FV = PV x (1 + r) n, where PV is present value, r is the interest rate, and n is the number of years.
Using the formula,Future Value = $56,000 x (1 + 6.4%) n dollars
To solve for n, we need to find the time period (in years) it takes for the Future Value to be $206,000.
Substituting the values,206,000 = 56,000(1 + 6.4%)n
We can simplify the above equation as:
3.6786 = (1 + 0.064)n
Taking the logarithm of both sides,log 3.6786 = log (1 + 0.064) n
Using a calculator, we can solve for n to find out how long it takes to have enough money to buy the Ferrari
.n = log 3.6786/log 1.064n ≈ 16.21 years
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An auctioneer has developed a simple mathematical model for deciding the starting bid he will require when auctioning a used automobile. Essentially, he sets the starting bid at sixty-five percent of what he predicts the final winning bid will (or should) be. He predicts the winning bid by starting with the car's original selling price and making two deductions, one based on the car's age and the other based on the car's mileage. The age deduction is $700 per year and the mileage deduction is $.03 per mile. (a) Develop the mathematical model that will give the starting bid (B) for a car in terms of the car's original price (P), current age (A) and mileage (M) (b) Suppose a four-year old car with 70,000 miles on the odometer is being auctioned. If its original price was $13,500, what starting bid should the auctioneer require?
The starting bid that the auctioneer should require is $5,775.
To develop the mathematical model for deciding the starting bid (B) for a car in terms of the car's original price (P), current age (A), and mileage (M), we need to understand the auctioneer's strategy of predicting the winning bid.Predicted Winning Bid = Final Selling Price = FSPFinal Selling Price = (65/100) * FSP + Starting BidWe can see that the final selling price is made up of two parts: the starting bid and the winning bid. Using the auctioneer's strategy of setting the starting bid at sixty-five percent of what he predicts the final winning bid will (or should) be, we can say that:Starting Bid = (65/100) * Predicted Winning BidStarting Bid = (65/100) * (Original Selling Price - Age Deduction - Mileage Deduction)
Thus, B = (65/100) * (P - 700A - 0.03M)(b) If a four-year-old car with 70,000 miles on the odometer is being auctioned, and its original price was $13,500, we can substitute the given values in the mathematical model: B = (65/100) * (13,500 - 700 * 4 - 0.03 * 70,000) = $5,775.
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Before and during job interviews, and whenever asked, applicants should mention a very precise image of the salary amount they expect as everything has to be clear from the very beginning. True False
False, "Before and during job interviews, and whenever asked, applicants should mention a very precise image of the salary amount they expect as everything has to be clear from the very beginning."
Before appearing for any job interview, it is important to have an idea of the salary range that is commonly offered in the job market for the job position you are applying for. This information can be collected through online job portals, career counselors, or by researching the company's website.
During the interview, the applicant may also be asked about their expected salary. While answering the question, the applicant should keep the following things in mind: Applicants should have a clear idea of their worth: Before giving the expected salary amount, it is important to understand the worth of your skills and experience.
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If someone believes that markets are always efficient then what is the best investment strategy for them if they want to invest in the stock market?
a.
Fundamental analysis
b.
Index investing
c.
None of the options
d.
Technical analysis
If someone believes that markets are always efficient then the best investment strategy for them if they want to invest in the stock market is:
b. Index investing.
Index investing is a passive investment strategy that aims to track or replicate the performance of a market index. The investor seeks to replicate the returns of the overall market rather than trying to outperform it. An index fund is the most popular investment vehicle for index investing. Index funds offer broad diversification and low costs, making them an attractive option for investors who believe that markets are efficient and that active management does not add value.
The primary advantage of index investing is that it allows investors to gain exposure to a broad market index while maintaining diversification and low costs. Since index funds track the performance of the overall market, they tend to outperform most actively managed mutual funds. Additionally, index funds provide investors with a low-cost way to gain exposure to a variety of asset classes and sectors of the market.
Thus, the correct option is : (b) Index investing.
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Lakeside Winery is considering expanding its wine-making operations. The expansion will require new equipment costing $636,623 that would be depreciated on a straight-line basis to a zero balance over the four-year life of the project. The estimated salvage value is $188,924. The project requires $36,756 initially for net working capital, all of which will be recovered at the end of the project. The projected operating cash flow is $198,410 a year. What is the net present value of this project (in $) if the relevant discount rate is 15.97 percent and the tax rate is 33 percent? Answer to two decimals
A financial indicator used to evaluate the viability and worth of an investment or project is its net present value (NPV). It shows the difference between the project's predicted cash inflows over a given period of time (such as revenues, cost savings, or proceeds from asset sales) and outflows (such as investments, operating costs, or taxes).
To find the net present value of the project, the formula that should be used is:
NPV = Present Value of Cash Flows - Initial Investment
where, Present Value of Cash Flows = (CF1/ (1 + r)^1) + (CF2/ (1 + r)^2) + (CF3/ (1 + r)^3) + (CF4/ (1 + r)^4) + (Salvage Value/ (1 + r)^4)
CF1 = Cash flow at the end of year 1 = $198,410
CF2 = Cash flow at the end of year 2 = $198,410
CF3 = Cash flow at the end of year 3 = $198,410
CF4 = Cash flow at the end of year 4 = $198,410
Initial investment = Equipment cost - Salvage Value + Net working capital
= $636,623 - $188,924 + $36,756= $484,455
Salvage Value = $188,924 Discount rate = 15.97% Tax rate = 33%
NPV = [(198410 / (1 + 0.1597)^1) + (198410 / (1 + 0.1597)^2) + (198410 / (1 + 0.1597)^3) + (198410 / (1 + 0.1597)^4) + (188924 / (1 + 0.1597)^4)] - 484455= $57907.60.
Thus, the net present value of this project is $57,907.60.
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business managment
19. With respect to the four types of creativity, imagination focuses on new, revolutionary solutions while improvement focuses on small, incremental solutions
. true or false
The statement stands for True i.e. "With respect to the four types of creativity, imagination focuses on new, revolutionary solutions while improvement focuses on small, incremental solutions,".
Creativity can be defined as a process of coming up with unique and innovative solutions to problems. There are four types of creativity: exploratory, combinatorial, improvement, and imaginative. Creativity can be divided into four categories: exploratory, combinatorial, improvement, and imaginative. Imagination is the category of creativity that focuses on generating new and innovative ideas and solutions that are different from the standard or traditional methods of problem-solving.
Improvement is another type of creativity that focuses on developing existing ideas and products through small, incremental innovation changes to improve their effectiveness, efficiency, and overall performance. Improvement is based on continuous and gradual innovation that leads to the development of high-quality products and services. Imagination is all about coming up with something entirely new, which has never been done before, while Improvement is all about enhancing or modifying the existing product. Hence, the given statement is true.
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In macroeconomics the term investment mostly refers to O businesses' purchases of new buildings and equipment. O business mergers. saving by the nation's households. O purchases of stocks, bonds, and other financial assets.
In macroeconomics, the term "investment" mostly refers to businesses' purchases of new buildings and equipment.
In macroeconomics, investment refers to the expenditure made by businesses to acquire new physical assets such as buildings, machinery, equipment, and vehicles. This type of investment is commonly known as fixed investment or capital investment. It is a crucial component of aggregate demand and contributes to economic growth and expansion. When businesses invest in new buildings and equipment, they are expanding their productive capacity, which leads to increased output and employment opportunities. These investments are aimed at improving efficiency, increasing productivity, and enhancing competitiveness.
The term "investment" in macroeconomics primarily pertains to businesses' purchases of new buildings and equipment. This type of investment is vital for stimulating economic growth, as it expands productive capacity and leads to increased output and employment. By investing in new physical assets, businesses aim to enhance their efficiency and productivity, contributing to overall economic development.
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North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to bo D=75.0+ 0.43Q, where Q refers to the sequential quarter number and Q=1 for winter of Year 1. In addition, the multiplicative seasonal factors are as follows. Factor (Index) 0.80 Quarter Winter Spring Summer Fall 1.25 1:40 0.55 In year 26 (quarters 101-104), the energy use for each of the quarters beginning with winter is (round your response to one decimal place) Energy Use Quarter Winter
The trend line for energy usage is given as D = 75.0 + 0.43Qwhere Q refers to the sequential quarter number and Q = 1 for the winter of Year 1.
Let's first calculate the energy use for each of the quarters for Year 26 using the trend line formula. Winter
(Q = 101):D = 75.0 + 0.43(101)
D = 75.0 + 43.43D = 118.43
million kilowatt hoursSpring
(Q = 102):D = 75.0 + 0.43(102)D
= 75.0 + 43.86D = 118.86million kilowatt-hours summerr
(Q = 103):D = 75.0 + 0.43(103)D
= 75.0 + 44.29D = 119.29 million kilowatt hoursFall
(Q = 104):D = 75.0 + 0.43(104)D
= 75.0 + 44.72D = 119.72
million-kilowatt hours now let's multiply these values by the seasonal factors given in the table. Winter:
118.43 × 1.25 = 148.04 million kilowatt hoursSpring:
118.86 × 1.40 = 166.40 million-kilowatt hours summer:
119.29 × 0.55 = 65.61 million kilowatt hoursFall:
119.72 × 0.80 = 95.78 million kilowatt hour,s therefore,
the energy use for each of the quarters beginning with winter in Year 26 is as follows:
Energy Use Quarter Winter: 148.0 million kilowatt hours (rounded to one decimal place)
Energy Use QuarterWinter:
148.0 million kilowatt :
Winter (Q = 101):
D = 75.0 + 0.43(101)
D = 75.0 + 43.43D = 118.43 million kilowatt hours
Spring (Q = 102):D = 75.0 + 0.43(102)D
= 75.0 + 43.86D = 118.86 million kilowatt-hour sssumm :Energy Use QuarterWinter: 148.0 million kilowatt hours (rounded to one decimal place)
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In this deliverable teams using Microsoft Project®️ will create a work breakdown structure (WBS) by listing all of the project life cycle and systems development life cycle phases and the associated deliverables that are needed for completing your project. Be sure to work through the MPS tutorial first. Also, be sure to follow the work package concept shown in Figures 5.8 and 5.9. Your WBS should include:
a. Milestones for each phase and deliverable—Achieving a milestone will tell every- one associated with the project that the phase or deliverable was completed satisfactorily.
b. Activities/Tasks—Define a set of activities or tasks that must be completed to produce each deliverable.
c. Resource Assignments—Assign people and other appropriate resources to each activity. This will be based on the people and resources that you identified when you completed the project infrastructure assignment from the previous chapter. Keep in mind that adding resources to an activity may allow the activity to be completed in a shorter amount of time; however, it may increase the cost of completing that task or activity.
d. Estimates for Each Activity/Task—Based on the tasks or activities and the resources assigned, develop a time estimate for each task or activity to be completed. For the purposes of this assignment, you should use a combination of estimation techniques such as time-boxing and bottom-up estimation.
Based on the given instructions, here is a sample work breakdown structure (WBS) for a project using Microsoft Project®️. Please note that this is a general template, and you may need to adapt it to your specific project requirements.
a. Milestones for each phase and deliverable:
1.Project Initiation Phase
Milestone: Project Charter Approved
2. Requirements Gathering Phase
Milestone: Requirements Document Approved
3. Design Phase
Milestone: Design Document Approved
4. Development Phase
Milestone: Development Completed and Reviewed
5. Testing Phase
Milestone: Testing Completed and Approved
6. Deployment Phase
Milestone: System Deployed and Operational
7. Project Closure Phase
Milestone: Project Closure
Documentation Completed
b. Activities/Tasks:
1.Project Initiation Phase
Define project scope and objectives
Identify project stakeholders
Develop project charter
2. Requirements Gathering Phase
Conduct stakeholder interviews
Elicit and document project requirements
Validate requirements with stakeholders
3. Design Phase
Create system architecture
Design user interface
Design database schema
4. Development Phase
Code development
Unit testing
Integration testing
5. Testing Phase
System testing
User acceptance testing
Bug fixing and retesting
6. Deployment Phase
Prepare deployment plan
Install and configure the system
Conduct user training
7. Project Closure Phase
Prepare project closure report
Conduct project review meeting
Archive project documentation
c. Resource Assignments:
1.Project Initiation Phase
Project Manager: John
Business Analyst: Mary
2. Requirements Gathering Phase
Business Analyst: Mary
Subject Matter Expert: Sarah
3. Design Phase
System Architect: Tom
UI Designer: Alex
Database Administrator: Mark
4. Development Phase
Developers: Team A
Testers: Team B
5. Testing Phase
Testers: Team B
Users: Department X
6. Deployment Phase
Deployment Specialist: Mike
Trainers: Trainers' Team
7. Project Closure Phase
Project Manager: John
Team Leads: All team leads
d. Estimates for Each Activity/Task:
1.Project Initiation Phase
Define project scope and objectives: 1 week
Identify project stakeholders: 2 days
Develop project charter: 1 week
2. Requirements Gathering Phase
Conduct stakeholder interviews: 2 weeks
Elicit and document project requirements: 3 weeks
Validate requirements with stakeholders: 1 week
3. Design Phase
Create system architecture: 2 weeks
Design user interface: 2 weeks
Design database schema: 1 week
4. Development Phase
Code development: 4 weeks
Unit testing: 2 weeks
Integration testing: 3 weeks
5. Testing Phase
System testing: 2 weeks
User acceptance testing: 1 week
Bug fixing and retesting: 2 weeks
6. Deployment Phase
Prepare deployment plan: 1 week
Install and configure the system: 1 week
Conduct user training: 1 week
7. Project Closure Phase
Prepare project closure report: 1 week
Conduct project review meeting: 2 days
Archive project documentation:
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A partnership agreement states explicitly the rights and duties of partners with each party assuming joint and several liability.
a. true
b. false
A partnership agreement states economics explicitly the rights and duties of partners with each party assuming joint and several liability is true.
Correct answer is, True.
In a partnership agreement, the duties and rights of partners are explicitly stated. The division of profits and losses, as well as the contributions of each partner, should be clearly defined. It is essential that each partner understands their responsibility to the partnership.In a partnership agreement, the liability of the partners can be specified as either joint and several or limited liability. Joint and several liability ensures that each partner is responsible for all the partnership's debts and obligations.
It implies that each partner is equally responsible for the obligations, and creditors can seek compensation from any or all partners. As a result, in this scenario, the statement is correct.It is, nevertheless, critical to understand that joint and several liability can expose partners to significant financial risks. As a result, partners must choose their business partners with caution and consider a more conservative approach to risk management in their business decisions.
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Fifteen year old Connor doesn't have his driver's license yet, but he jumps at the chance to race his friend's car. The thrill of taking this risk outweighs any long term consequences for Connor, which could be partly due to the fact that during adolescence, the ________ matures before the ________ in the brain.
The thrill of taking this risk outweighs any long term consequences for Connor, which could be partly during adolescence, the limbic system matures before the prefrontal cortex in the brain.
The limbic system, which is involved in emotional processing and reward-seeking behavior, including thrill and risk-taking, undergoes significant development during adolescence. This can lead to increased sensation-seeking and a greater attraction to novel and risky experiences.
On the other hand, the prefrontal cortex, which is responsible for executive functions such as impulse control, decision-making, and weighing long-term consequences, undergoes continued development throughout adolescence and into early adulthood. It is responsible for evaluating the potential risks and rewards of a given situation and making rational decisions based on long-term consequences.
In the case of Connor, the thrill of racing his friend's car and taking risks may be more appealing to him because his limbic system, which processes emotions and rewards, has developed earlier than his prefrontal cortex, which would typically help in considering the long-term consequences of such actions.
The fact that the limbic system matures before the prefrontal cortex during adolescence may contribute to Connor's willingness to engage in risky behavior without fully considering the potential long-term consequences. It is important for adolescents to be aware of these brain development differences and for adults to provide guidance and support to help them make responsible decisions.
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What is one thing you are interested in exploring further about making decisions that involve diverse perspectives? How will.
What you are learning about power and authority affect your understanding.
One thing I am interested in exploring further about making decisions that involve diverse perspectives is the impact of unconscious bias on decision-making processes. Unconscious bias refers to the automatic judgments we make about others without being aware of them. It can lead to discrimination, stereotypes, and exclusion in decision-making processes.
To address unconscious bias and make more inclusive decisions, it is important to be aware of our biases and take steps to mitigate their impact. This can involve seeking out diverse perspectives, gathering data and information, and using decision-making processes that encourage inclusion and participation.
Understanding the role of power and authority in decision-making processes is critical to avoid or minimize the impact of unconscious bias. Power dynamics can significantly influence decision-making, particularly when one group holds more power than others. By learning about power and authority, we can gain insights into how decision-making processes work and the potential barriers they create for inclusive decision-making.
Recognizing power imbalances helps us understand how certain voices or perspectives may be marginalized or overlooked in decision-making processes. It prompts us to question and challenge these dynamics to ensure that decisions are fair, equitable, and considerate of diverse perspectives.
By understanding power and authority, we can develop strategies to mitigate their negative effects on decision-making. This may involve creating structures that distribute power more evenly, fostering an inclusive and participatory decision-making environment, and implementing policies that promote diversity, equity, and inclusion.
In summary, learning about power and authority enhances our understanding of decision-making processes involving diverse perspectives. It enables us to recognize and address unconscious biases that can hinder inclusivity, and it empowers us to create fairer and more equitable decision-making practices.
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A put option that expires in eight months with an exercise price of $57 sells for $3.85. The stock is currently priced at $59, and the risk-free rate is 3.1 percent per year, compounded continuously. What is the price of a call option with the same exercise price and expiration date? (1.5 point) Answers 1-1 1.
The price of a call option with the same exercise price and expiration date is unknown.
To determine the price of a call option with the same exercise price and expiration date, we can use the put-call parity formula. According to put-call parity, the price of a call option (C) plus the present value of the exercise price (Xe^(-rt)) should equal the price of a put option (P) plus the current stock price (S). Mathematically, it can be expressed as:
C + Xe^(-rt) = P + S
Given information:
Put option price (P) = $3.85
Exercise price (X) = $57
Stock price (S) = $59
Risk-free rate (r) = 3.1% per year (0.031)
Time to expiration (t) = 8 months (expressed in years as 8/12 = 2/3)
Using the put-call parity formula, we can solve for the price of the call option (C):
C + 57e^(-(0.031)*(2/3)) = 3.85 + 59
C + 57e^(-0.0206) = 62.85
C + 57 * 0.97955 = 62.85
C + 56.00335 = 62.85
C = 62.85 - 56.00335
C = 6.84665
Therefore, the price of a call option with the same exercise price and expiration date is approximately $6.85.
Based on the given information and using the put-call parity formula, the price of a call option with the same exercise price and expiration date is calculated to be $6.85.
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Weston Corporation just paid a dividend of $1.75 a share (.e., Do $1.75). The dividend is expected to grow 12% a year for the next 3 years and then at 3% a year thereafter. What is the expected dividend per share for each of the next 5 years? Do not round intermediate calculations. Round your answers to the nearest cent.
Therefore, the expected dividend per share for each of the next 5 years is as follows: Year 1: $1.96, Year 2: $2.19, Year 3: $2.45, Year 4 and onward: $2.52
To calculate the expected dividend per share for each of the next 5 years, we'll use the given growth rates.
Year 1:
Dividend per share = $1.75 × (1 + 12%) = $1.75 × 1.12 = $1.96
Year 2:
Dividend per share = $1.96 × (1 + 12%) = $1.96 × 1.12 = $2.19
Year 3:
Dividend per share = $2.19 × (1 + 12%) = $2.19 × 1.12 = $2.45
Years 4 and onward:
Dividend per share = $2.45 × (1 + 3%) = $2.45 × 1.03 = $2.52
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You own a portfolio that has $1,700 invested in Stock A and $3,300 invested in Stock B. If the expected returns on these stocks are 9 percent and 16 percent, respectively, what is the expected return on the portfolio?
Multiple Choice
A. 14.30%
B. 11.38%
C. 13.62%
D. 12.50%
E. 13.89%
The formula to calculate the expected return on a portfolio is to add the weighted returns of each stock. The weights are determined by dividing the amount invested in each stock by the total portfolio value.
Expected return on portfolio = (Weight of Stock A x Expected return on Stock A) + (Weight of Stock B x Expected return on Stock B)Weight of Stock A = $1,700 / ($1,700 + $3,300) = 0.34Weight of Stock B = $3,300 / ($1,700 + $3,300) = 0.66Expected return on portfolio = (0.34 x 0.09) + (0.66 x 0.16) = 0.0306 + 0.1056 = 0.1362 or 13.62%
It is given that $1,700 is invested in Stock A and $3,300 is invested in Stock B. The expected return on Stock A is 9%, and the expected return on Stock B is 16%. We need to find the expected return on the portfolio.The expected return on a portfolio is calculated by adding the weighted returns of each stock. The weights are determined by dividing the amount invested in each stock by the total portfolio value.
Using the given data, the total value of the portfolio is:$1,700 + $3,300 = $5,000The weight of Stock A in the portfolio is:$1,700 / $5,000 = 0.34The weight of Stock B in the portfolio is:$3,300 / $5,000 = 0.66
The expected return on the portfolio is: Expected return on portfolio = (Weight of Stock A x Expected return on Stock A) + (Weight of Stock B x Expected return on Stock B)= (0.34 x 0.09) + (0.66 x 0.16)= 0.0306 + 0.1056= 0.1362 or 13.62%Therefore, the expected return on the portfolio is 13.62%.
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According to Porter's Five Forces model, if there are many competitors and the barriers to entry are low, the O industry is unattractive O industry is attractive O customers have low bargaining power O industry is mature.
According to Porter's Five Forces model, if there are many competitors and the barriers to entry are low,.it indicates that the industry is unattractive.
Porter's Five Forces model is a framework used to analyze the competitive intensity and attractiveness of an industry. It considers five key forces that shape competition within an industry.
Threat of new entrants: Refers to the likelihood of new competitors entering the market. If barriers to entry are low, it becomes easier for new players to enter the industry, increasing competition.
Bargaining power of suppliers: Refers to the influence suppliers have over the industry. If suppliers have significant power, they can dictate terms and prices, reducing industry attractiveness.
Bargaining power of buyers: Refers to the influence customers have over the industry. If customers have strong bargaining power, they can demand lower prices or better terms, affecting industry profitability.
Threat of substitute products or services: Refers to the availability of alternative products or services that can fulfill the same customer needs. If there are many substitutes, it increases competition and reduces industry attractiveness.
Intensity of competitive rivalry: Refers to the level of competition among existing competitors in the industry. If there are many competitors and they compete fiercely, it can decrease industry profitability.
In the context of Porter's Five Forces model, when there are many competitors and the barriers to entry are low, it indicates that the industry is unattractive. Low barriers to entry make it easier for new competitors to enter the market, resulting in increased competition and potential erosion of profitability for existing players. Therefore, companies operating in such an industry would face challenges in maintaining their market share and profitability.
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Calculation and Drawing Histograms Question a) Draw up Resource Histograms for (i) Early Starts (ii) Late Starts showing the resource loadings. Comment on the results in terms of employee resource requirements over the duration of the project. Draw a network diagram using the information on activity, then perform a forward and backward pass.
It is constructed through splitting the entire range of values into a set of intervals and counting how many data points fall into each interval. Resource Histograms are graphs used to portray the number of resources assigned to each task in a project.
There are two types of Resource Histograms for Early Starts and Late Starts in Project Management.Resource Histograms for Early StartsThe Resource Histogram for Early Starts depicts the resources required to complete tasks on the earliest possible schedule. It is critical for capacity planning because it illustrates when resources will be needed for the project, allowing project managers to adjust the team's size as required.Resource Histograms for Late StartsThe Resource Histogram for Late Starts depicts the resources required to complete tasks on the latest possible schedule. It is important for contingency planning because it illustrates when the resources can be used for the project if a delay happens.
The diagram depicts the resources required at different times, and it is critical in determining the team size that should be assigned to the project. Network DiagramA network diagram, also known as a project management flow diagram, is a diagram that depicts the project's activities and their connections. It is a visual representation of the sequence of tasks required to finish the project. By understanding the connections between tasks, the network diagram aids in the comprehension of project activities' timing and sequence.The diagram comprises a series of nodes, or circles, that depict the project's activities.
Arrows connect the nodes and indicate the relationship between activities. The forward pass is a technique that calculates the earliest date by which an activity can be started and finished. The backward pass is a technique that calculates the latest date by which an activity can be started and finished.Both the Resource Histograms and the Network Diagrams assist in the planning of projects and in understanding the timing and resource demands of each project activity. These visuals assist the project manager in allocating appropriate personnel to the project at the appropriate time, ensuring that the project is completed on schedule.
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What is the value of a bond that has a par value of $1,000, a coupon rate of 10.39 percent (paid annually), and that matures in 16 years? Assume a required rate of return on this bond is 9.72 percent.
Round the answer to two decimal places.
Answer:
To calculate the value of the bond, we can use the present value formula for a bond:
Bond Value = (Coupon Payment / Discount Rate) * (1 - (1 / (1 + Discount Rate)^n)) + (Par Value / (1 + Discount Rate)^n)
Explanation:
Where:
Coupon Payment is the annual coupon payment
Discount Rate is the required rate of return
n is the number of years to maturity
Par Value is the face value of the bond
Given:
Par Value = $1,000
Coupon Rate = 10.39% (paid annually)
Required Rate of Return = 9.72%
Maturity = 16 years
First, we calculate the annual coupon payment:
Coupon Payment = Par Value * Coupon Rate = $1,000 * 10.39% = $103.90
Next, we substitute the values into the bond value formula:
Bond Value = ($103.90 / 0.0972) * (1 - (1 / (1 + 0.0972)^16)) + ($1,000 / (1 + 0.0972)^16)
Using a financial calculator or spreadsheet, the bond value is approximately $1,307.12.
Therefore, the value of the bond is approximately $1,307.12.
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apply the The Facets Model of Effects on 2022 Dodge Challenger
SRT Hellcat car for an advertisement and discuss the objectives of
the advertisement
The Facets Model of Effects can be applied to the 2022 Dodge Challenger SRT Hellcat car advertisement in the following ways:
Cognitive Effects: The advertisement can aim to create awareness and knowledge about the features and performance of the Dodge Challenger SRT Hellcat. It can highlight its powerful engine, speed capabilities, advanced technology, and unique design.Affective Effects: The advertisement can evoke emotions and feelings of excitement, thrill, and desire among viewers. It can use dynamic visuals, captivating music, and high-energy narratives to create an emotional connection with the audience.Behavioral Effects: The objective of the advertisement can be to influence the audience's behavior by motivating them to consider purchasing or test-driving the 2022 Dodge Challenger SRT Hellcat. It can provide information about dealerships, promotional offers, and ways to experience the car firsthand.Conative Effects: The advertisement can aim to stimulate action and encourage potential buyers to take specific steps, such as visiting the official website, contacting a dealer, or scheduling a test drive. It can include clear and compelling calls-to-action to drive conversion and engagement.By employing the Facets Model of Effects, the advertisement for the 2022 Dodge Challenger SRT Hellcat car can effectively target the cognitive, affective, behavioral, and conative aspects of the audience's response. It can provide information about the car's features, performance, and design to enhance the viewers' knowledge and understanding (cognitive effects). Additionally, through captivating visuals, music, and storytelling, it can evoke emotions of excitement, thrill, and desire, creating a positive emotional association with the car (affective effects).
The advertisement's primary objective will be to drive consumer behavior and influence their decision-making process. By showcasing the car's power, speed, and cutting-edge technology, it can inspire viewers to consider owning the Dodge Challenger SRT Hellcat and engage in further exploration or evaluation (behavioral effects). The advertisement can also include clear calls-to-action, such as visiting the official website, finding a local dealer, or scheduling a test drive, to prompt immediate action (conative effects).
By applying the Facets Model of Effects, the advertisement for the 2022 Dodge Challenger SRT Hellcat car can effectively communicate its key features, elicit emotional responses, influence consumer behavior, and prompt action. The objectives of the advertisement will be to increase awareness and knowledge about the car, create a strong emotional connection with the audience, drive consideration and evaluation, and ultimately lead to conversions and sales.
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Job - Suppose you are working at Gas station
a) Job Summary (Briefly describe the purpose of this job, what is done, and how the job is done).
b) List the job’s duties and proportion of time each (out of 100%) involves:
c) What makes for successful performance of each these duties?
Successful performance in a gas station job requires a combination of customer service skills, attention to detail, adherence to safety and compliance guidelines, efficient time management, and teamwork.
a) Job Summary:
Working at a gas station involves various responsibilities related to customer service, cash handling, fueling vehicles, inventory management, maintenance tasks, and ensuring safety and compliance. The purpose of the job is to provide efficient and reliable services to customers while maintaining a safe and organized work environment.
b) Job Duties and Time Proportion:
Customer Service (30%): Assisting customers with fueling their vehicles, answering inquiries, addressing concerns or complaints, and providing a positive customer experience.
Cash Handling (20%): Operating the cash register, processing transactions accurately, handling cash, and providing receipts to customers.
Fueling Vehicles (15%): Pumping fuel into customer vehicles, following safety protocols, and maintaining fueling equipment.
Inventory Management (10%): Monitoring fuel levels in storage tanks, coordinating fuel deliveries, restocking convenience store items, and maintaining inventory accuracy.
Maintenance Tasks (10%): Cleaning fuel pumps, maintaining a clean and organized work area, and performing routine maintenance activities.
Safety and Compliance (10%): Conducting safety checks, inspecting equipment, following emergency protocols, and ensuring compliance with regulations.
Merchandise Sales (5%): Selling convenience store items, promoting special offers, and handling merchandise transactions.
Shift Management (5%): Managing shift schedules, coordinating breaks, and ensuring smooth operations during the assigned shift.
c) Successful Performance Factors:
Excellent customer service skills, including strong communication and problem-solving abilities.
Attention to detail and accuracy in cash handling and transaction processing.
Knowledge of safety protocols and adherence to safety guidelines for fueling vehicles and handling emergency situations.
Efficient time management and organization skills to manage inventory, conduct maintenance tasks, and ensure a clean work environment.
Familiarity with compliance regulations and the ability to follow them diligently.
Basic mathematical skills for handling cash, calculating fuel amounts, and maintaining inventory records.
Teamwork and cooperation with colleagues to ensure smooth shift operations.
Adaptability to handle varying customer demands and work in a fast-paced environment.
Successful performance in a gas station job requires a combination of customer service skills, attention to detail, adherence to safety and compliance guidelines, efficient time management, and teamwork. By effectively carrying out duties related to customer service, cash handling, fueling vehicles, inventory management, maintenance tasks, safety, and shift management, gas station employees contribute to a positive customer experience and the smooth operation of the gas station.
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"It is now January 1, 2021. Today you will deposit $1,000 into a
savings account that pays 8% If the bank compounds interest
annually, how much will you have in your account on January 1,
2024?
Depositing $1,000 into a savings account with an 8% annual compounding interest rate would result in approximately $1,259.70 in the account on January 1, 2024.
If the bank compounds interest annually at a rate of 8%, the formula to calculate the future value of the investment is:
Future Value = Principal * (1 + Interest Rate)^Number of Years
In this case, the principal amount is $1,000, the interest rate is 8% (or 0.08), and the number of years is 3 (from January 1, 2021, to January 1, 2024).
Plugging these values into the formula:
Future Value = $1,000 * (1 + 0.08)^3
Future Value = $1,000 * (1.08)^3
Future Value = $1,000 * 1.2597
Future Value ≈ $1,259.70
Therefore, if you deposit $1,000 into a savings account that pays 8% interest compounded annually, you would have approximately $1,259.70 in your account on January 1, 2024.
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This capstone project will allow students to further demonstrate their knowledge and application of personal finance planning. Personal finance planning includes finance management, risk management, investment, and retirement planning. In the final project, we continue working with Hanji and Jane and help them plan their retirement. Hanji just turned 55, whereas Jane turned 54. Both have been active and do daily exercise. Hanji and Jane are both non-smokers and rarely drink. Hanji's parents are healthy, and they are in their 80s. Jane's father passed away 20 years ago due to a car accident, and her mother is in her 80s and healthy. When Jane's father died, they sold their townhouse in Yaletown 18 years ago. They bought Jane parent's house in West Vancouver. Jane's mother has been living with them and helps Jane take care of her granddaughter, Emma. Emma is already 24 years old and went to UBC and finished her degree in computer science. Emma currently works for Amazon as a senior developer and lives independently. Emma is also smart with her money and bought her apartment in Yaletown. Hanji and Jane have been thinking about their retirement, and they come to you for further advice. During the meeting, you were informed that they would not move out of their current house as they plan to take care of Jane's mom. Once they pass away, they want to leave this house to their daughter Emma as a heritage in the family. Both Hanji and Jane are considering early retirement at age 60 but are unsure about their financial situation after retirement. Jane's mom is healthy but needs assistance. They plan to find a nursing home for Jane's mom this year. When Jane's dad passed away, her mom received the life insurance payout. She has been financially independent, and she will be able to cover her nursing home expenses. For the last 35 years, both have lived in Canada and made the full amount of CPP contribution. However, they both work for medium size firm that did not provide employees with pension plans. Hanji and Jane are both wise with their savings. The house and car have been fully paid off, and they have $750,000 savings in GIC, $250,000 in RRSP, and $100,000 in TFSA. As they plan to leave the house as an estate to their daughter, they prefer using their savings for their retirement. There are only five years away from their retirement, and they want to know whether they can retire at age 60. They want to maintain the same lifestyle and have a budget of $6000 per year for travel and leisure during the first five years of retirement. To plan their retirement, they have been thinking about purchasing a Sunlife annuity, which needs a lump sum investment of $600,000 and receives $50,000 per year for the rest of their life. Please help Hanji analyze their retirement plan and find how much they need to retire at 60. Currently, Hanji generates $100,000 in after-tax earnings, and Jane has been working independently as a financial accountant. Jane's after-tax earnings are $65,000 per year. Required: Calculate their life expectancy (10%) Calculate their federal support earnings (25%) Calculate after expense net cash flow after retirement (10%) Calculate the amount they need to retire (25%) Prepare retirement plan table (30%)
Given that Hanji just turned 55, whereas Jane turned 54 and they both plan on early retirement at the age of 60 years. So, they are five years away from their retirement and the life expectancy of the couple is 7.273 years.
Lifetime income from annuity$50,000Using a present value of an annuity table, the present value factor is 13.2467. Therefore,
the amount needed for purchasing the annuity is;Annuity cost = $50,000/13.2467 = $3,777,522.11Federal support earnings
The OAS (Old Age Security) for both of them can be calculated to be;$613.53*12 = $7,362.36CPP (Canada Pension Plan) for both of them will be;$7,176.00 + $7,176.00 = $14,352.00Therefore, the total federal support earnings will be $21,714.36 per year.After expense net cash flow after retirement
The outflow for the five years of retirement can be calculated to be;
$72,000 + $74,160 + $76,295 + $78,406 + $80,492
= $381,353
The inflow for the five years of retirement can be calculated to be;
$125,503 + $128,217 + $131,053 + $134,010 + $137,092
= $655,875
Therefore, the after expense net cash flow after retirement will be;
$655,875 - $381,353 = $274,522
Amount needed to retire For the five years of retirement, the cost of living will be;
$66,000 + $67,980 + $69,931 + $71,855 + $73,751
= $349,517
The budget for travel will be;$6,000 + $6,180 + $6,364 + $6,551 + $6,741
= $32,836 Therefore, the total expenses for the five years of retirement will be;$349,517 + $32,836 = $382,353After-tax earnings of Hanji $100,000
Therefore, the total after-tax earnings for Hanji for the next five years will be;
$100,000*5 = $500,000
After-tax earnings of Jane$65,000Therefore, the total after-tax earnings for Jane for the next five years will be;
$65,000*5 = $325,000
Total savings Savings in GIC$750,000Savings in RRSP$250,000Savings in TFSA$100,000
Therefore, the total savings for both of them will be;$750,000 + $250,000 + $100,000 = $1,100,000Therefore, the amount needed to retire will be;$382,353 - $500,000 - $325,000 - $21,714.36 - $47,500 = -$51261.36As the value of the amount needed to retire is negative, it means that Hanji and Jane have enough savings to retire. Thus, the couple can retire at age 60.
Life expectancy
The formula to calculate life expectancy is;
PV = FV/(1+i)n Here, PV (Present Value) = 1,
FV (Future Value) = 0.10,
i (Interest Rate) = 10%, and
n (Periods) = Life Expectancy.
Therefore, the life expectancy will be;
1 = 0.10/(1+0.10)n
Taking logarithm on both sides and solving the equation;
n = 7.273 years
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If the price of product L increases, the demand curve for close-substitute product J will
shift downward toward the horizontal axis.
shift to the left.
shift to the right.
remain unchanged.
College students living off-campus frequently consume large amounts of ramen noodles and boxed macaroni andcheese. When they finish school and start careers, their consumption of both goods frequently declines. Thissuggests that ramen noodles and boxed macaroni and cheese are
inferior goods.
normal goods.
complementary goods.
substitute goods.
If the price of product L increases, the demand curve for a close-substitute product J will shift to the right.
When the price of a substitute product increases, consumers tend to switch their demand towards the relatively cheaper close substitute. As a result, the demand for the close-substitute product J will increase, leading to a rightward shift in its demand curve.
Regarding the consumption of ramen noodles and boxed macaroni and cheese by college students and young professionals, the given information suggests that ramen noodles and boxed macaroni and cheese are inferior goods.
In economics, inferior goods are goods for which demand decreases as consumers' income increases. When college students transition into careers and experience higher incomes, their consumption of ramen noodles and boxed macaroni and cheese declines. This indicates that these goods are considered lower-quality or less desirable options, and as consumers have more disposable income, they switch to other alternatives. Therefore, ramen noodles and boxed macaroni and cheese are classified as inferior goods.
The consumption patterns of college students and young professionals, where their consumption of ramen noodles and boxed macaroni and cheese declines as their incomes increase, suggest that these goods are inferior goods.
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Calculate the following investments payback period if it has an initial cost of 4200 and generates a return of 2300, 1200, 2000 and 5200. O 2.35 years O 2.74 years O 2.54 years 0 4 years
If there is an initial cost of 4200 and generates a return of 2300, 1200, 2000, and 5200 then the payback period for the investment is 2.54 years.
The payback period is a financial metric that calculates the time required for an investment to recoup its initial cost. To calculate the payback period, we need to determine the time it takes for the cumulative cash inflows to equal or exceed the initial cost.
In this case, the initial cost is $4,200, and the cash inflows are $2,300, $1,200, $2,000, and $5,200. We add up the cash inflows until the cumulative total is equal to or greater than the initial cost.
$2,300 + $1,200 + $2,000 + $5,200 = $10,700
The cumulative cash inflows reach $10,700 in the fourth year. Since the payback period is measured in years, the investment's payback period is 4 years.
However, none of the answer choices provided matches the calculated payback period. Therefore, the answer choices given do not accurately represent the payback period for this investment.
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As a member of VA Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t-o. What is the Year 1 cash flow? Sales revenues, each year $51,100 Operating costs $18,400 Interest expense $4,000 25.0% O a. 524,525 5 528 525 Tax rate $21.525 0,532,700 525 52
Year 1 Cash flow: The formula to calculate cash flow is: Cash flow = EBIT × (1 – T) + Depreciation – Capital expenditures – Δ Net working capital Here, EBIT = Sales revenues – Operating costs – Depreciation – Interest expense= $51,100 – $18,400 – $0 – $4,000= $28,700
Therefore, cash flow = $28,700 × (1 – 0.25) + $0 – $0 – ΔNWCNow,Net working capital (NWC) = Operating current assets – Operating current liabilities Operating current assets = $10,500Operating current liabilities = $5,800Therefore, NWC = $10,500 – $5,800 = $4,700As per the given problem, there is no change in NWC. So, ΔNWC = $0Therefore, cash flow = $28,700 × (1 – 0.25) + $0 – $0 – $0= $21,525 + $0 + $0= $21,525Thus, the Year 1 cash flow is $21,525.
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QUESTION 6 What is considered as a project constrains? a. Scope, requirements b. Time, scope c. Budget, quality d. Scope, time, budget
Project constraints are the limitations of a project, such as time, budget, and scope(D). A project's scope, budget, and timeline are among the most important constraints.
Scope refers to the project's objectives, including the features and characteristics that will be built or delivered. The scope of a project is critical in that it defines the project's boundaries and establishes the project's requirements. Time is also an important constraint because it is the amount of time available for the project to be completed.Quality is also an important constraint, but it is frequently viewed as a consideration rather than a constraint. Because quality criteria are often implicit, rather than explicitly stated, they can be difficult to identify.
Nonetheless, project quality is critical because it has a direct impact on the success of the project. In conclusion, the constraints of a project are the limitations that a project faces such as time, scope, and budget.(D)
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Geno's Body Shop had sales revenues and operating costs in 2020 of $800,000 and $600,000, respectively. In 2021, Geno plans to expand the services it provides to customers to include detailing services. Revenues are expected to increase by $115,000 and operating costs by $65,000 as a result of this expansion Assuming that there are no changes to the existing body shop business, operating profits would be expected to increase during 2021 by
The operating profit is the excess amount that is generated after deducting the operating costs from the operating revenues. The operating profit formula is: Operating Profit = Operating Revenues – Operating CostsGeno's Body Shop had sales revenues and operating costs in 2020 of $800,000 and $600,000, respectively.
The operating profit for 2020 would be:Operating Profit = Operating Revenues – Operating CostsOperating Profit = $800,000 – $600,000 = $200,000In 2021, Geno plans to expand the services it provides to customers to include detailing services. Revenues are expected to increase by $115,000 and operating costs by $65,000 as a result of this expansion.
The new operating revenues and costs will be:Operating Revenues for 2021 = $800,000 + $115,000 = $915,000Operating Costs for 2021 = $600,000 + $65,000 = $665,000Operating Profit for 2021 = Operating Revenues – Operating CostsOperating Profit for 2021 = $915,000 – $665,000 = $250,000Therefore, the operating profits would be expected to increase during 2021 by $50,000 (from $200,000 to $250,000).Hence, the correct option is a. $50,000.
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The Chickpeas Corporation is considering investing in a project with an initial cash outlay of $100M and subsequent cash inflows of $40M in Yr 1, $50M in Yr 2, and $60M in Yr 3. If the required return is 8%, the DISCOUNTED PAYBACK PERIOD for this project is:
a. 2.4 years
b. 2.2 years
c. 3.0 years
d. 2.1 years
The discounted payback period for the project is 2.4 years.
The discounted payback period takes into account the time value of money by using discounted cash flows. To calculate the discounted payback period, we determine the cumulative discounted cash flows until they equal or exceed the initial investment. In this case, we calculate the present value of cash inflows using an 8% discount rate. The present value of $40M in Year 1 is $37.04M, $50M in Year 2 is $43.36M, and $60M in Year 3 is $49.82M. The cumulative discounted cash flows in Year 1 is $37.04M, in Year 2 is $80.4M, and in Year 3 is $130.22M, which exceeds the initial investment of $100M.
The closest year at which this occurs is 2.4 years, indicating that the discounted payback period for the project is 2.4 years. Therefore, option a. 2.4 years is the correct answer.
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