Answer:
<h2>A man buys a racehorse for $20,000 and enters it in two races. He plans to sell the horse afterward, hoping to make a profit. If the horse wins both races, its value will jump to $100,000. If it wins one of the races, it will be worth <em>$50,000.</em></h2>
Explanation:
TRUE
<u>Explanation:</u>
The correct answer is true as the independent projects are selected based on the net present worth and the rate of return and do nothing alternative. In the independent projects, there is no need for the incremental B/C analysis. Simple B/C ratio will do it. If the B/C > 1, benefits outweigh the costs and the project is selected provided that there is no budget limitation. Thus, the given statement is absolutely the true one.
Answer:
The Bid Price you should submit is $15.45
Explanation:
NPV = -795000 + 143000*(1-21%)/1.09^5-70000 + 70000/1.09^5 + ((120000*(P-10.15) - 435000 - 795000/5)*(1-21%) + 795000/5)/0.09*(1-1/1.09^5)
=> -795000 + 143000*(1-21%)/1.09^5 - 70000 + 70000/1.09^5 +((120000*(P-10.15) - 435000 - 795000/5)*(1-21%) + 795000/5)/0.09*(1-1/1.09^5) >=0
=>P = 15.446118865171
Therefore, The Bid Price you should submit is $15.45
Answer:
(A) less
Explanation:
Given a positive inflation rate, the real value of the dollar will depreciate by the rate of inflation annually.
Thus, for a house that cost $100,000 today, given a 3% inflation rate, it would cost (100,000 * 1.03 = ) $103,000 after a year.
This means, $100,000 today will have the same value as $103,000 one year later.
Therefore, repayments, which will likely be a fixed sum every year, will have a lower purchasing power as the year progresses.
