1. If Mr.G. had to let go of a profit of USD 2000 due to his company's inability to produce, what will this foregone profit be called?

a. Marginal Cost

b. Labour cost 

c. Overhead cost. 

d. Opportunity cost

2. Mk Ltd consumes around 100 units of raw material J per month which costs Rs. 20 per product. The ordering costs are Rs.30. The estimated obsolescence rate is around 10% and the storage costs for the raw material is 5% of the material cost. The bank interest rate is around 10%. Calculate the economic order quantity for Mk Ltd.

a. 140 units

b. 200 units 

c. 120 units. 

d. 80 units

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1. Mr XYZ is self-employed. Last year, his business generated a profit of CH 50,000 He also receives dividend of GH e3,000 paid by a multinational company where he is shareholder. He contacts you to purchase a life insurance plan because he has a serious underlying medical condition. i As an insurance broker, what is the right insurance plan Mr. XYZ should purchase and explain how you will convince Mr. XYZ to purchase the insurance plan chosen il. Write the present value of the cash flow of the insurance plan purchase in (i) with the premium you will charge. 2. An insurance company issued a pure endowment plan to a life aged r pays GHel at age of ++kon survival, where is a fixed positive number and is nonegative. The present value is given a where e 9(1) = 0, Given the commutation function D, show that; i. its expected value is given as Eg(T.))-E- ii. its variance is V(((7))=E(1-P) h(k)= otherwise ii. its variance is V(h(K₂}} = - D 0, D₂ 3. J&P insurance company issued a term insurance plan to a life aged at the time the insurance is taken out. The company pays a benefit of GHe G at the end of the year of & if death occurs in that year and k<n, where G is a constant and n is a fixed positive integer. The present value of the cash flow is given as: (Get ik<n (20mks) ik 2n where - (). Given the commutation functions D, C₂ = ¹d, and M.-C show that 1. its expected value is given as E(h(K)) = G²(M.-M.) D₂ G(M.-M) D₂ (15mks) M.-M... D₂ (15) 1. Mr XYZ is self-employed. Last year, his business generated a profit of GH €50,000. He also receives dividend of GH 3,000 paid by a multinational company where he is shareholder. He contacts you to purchase a life insurance plan because he has a serious underlying medical condition. i. As an insurance broker, what is the right insurance plan Mr. XYZ should purchase and explain how you will convince Mr. XYZ to purchase the insurance plan chosen. ii. Write the present value of the cash flow of the insurance plan purchase in (i) with the premium you will charge. (20mks) 1. Mr XYZ is self-employed. Last year, his business generated a profit of CH 50,000 He also receives dividend of GH e3,000 paid by a multinational company where he is shareholder. He contacts you to purchase a life insurance plan because he has a serious underlying medical condition. i As an insurance broker, what is the right insurance plan Mr. XYZ should purchase and explain how you will convince Mr. XYZ to purchase the insurance plan chosen il. Write the present value of the cash flow of the insurance plan purchase in (i) with the premium you will charge. 2. An insurance company issued a pure endowment plan to a life aged r pays GHel at age of ++kon survival, where is a fixed positive number and is nonegative. The present value is given a where e 9(1) = 0, Given the commutation function D, show that; i. its expected value is given as Eg(T.))-E- ii. its variance is V(((7))=E(1-P) h(k)= otherwise ii. its variance is V(h(K₂}} = - D 0, D₂ 3. J&P insurance company issued a term insurance plan to a life aged at the time the insurance is taken out. The company pays a benefit of GHe G at the end of the year of & if death occurs in that year and k<n, where G is a constant and n is a fixed positive integer. The present value of the cash flow is given as: (Get ik<n (20mks) ik 2n where - (). Given the commutation functions D, C₂ = ¹d, and M.-C show that 1. its expected value is given as E(h(K)) = G²(M.-M.) D₂ G(M.-M) D₂ (15mks) M.-M... D₂ (15) 1. Mr XYZ is self-employed. Last year, his business generated a profit of GH €50,000. He also receives dividend of GH 3,000 paid by a multinational company where he is shareholder. He contacts you to purchase a life insurance plan because he has a serious underlying medical condition. i. As an insurance broker, what is the right insurance plan Mr. XYZ should purchase and explain how you will convince Mr. XYZ to purchase the insurance plan chosen. ii. Write the present value of the cash flow of the insurance plan purchase in (i) with the premium you will charge. (20mks)

Answer rating: 100% (QA)

1 Option D Opportunity Cost is the correct answer 2 Option C 120 units is the correct answer ANSWER ... View the full answer