Answer:
The NPV of the project at 8.7 percent will be 4,802.58
Explanation:
We will calcualte the present value of the cash inflow:
<u>year 3: </u>
Inflow 11,900.00
time 3.00
rate 0.087
PV 9,265.28
<u>Year 4:</u>
Inflow 11,900.00
time 4.00
rate 0.087
PV 8,523.71
<u>Year 6:</u>
Inflow 50,500.00
time 6.00
rate 0.087
PV 30,613.58
Then, we will add them together and subtract the investment amount
NPV: 30,613.59 + 8,523.71 + 9,265.28 - 43,600 = 4,802.58
Answer:
The price elasticity of supply is 1.22
Explanation:
Please refer to the attached file
Answer:D) the bond is probably being called by the issuer because interest rates went up
This statement is not true because when interest rates go up the issuer is at an advantage as he had previously borrowed money at a interest rate which is lower than the present interest rate, as interest rates have risen. Also when interest rates rise and the issuer calls the bond he will have to pay higher interest to re borrow money and this is foolish thus the issuer will not call the bond when interest rates rise. The issuer will call the bond when interest rates fall, as the issuer can re issue the bonds and borrow money at lower interest rates.
Explanation:
Answer:
Direct Materials EU = 165,000
Direct Labour EU = 144,000
Explanation:
Equivalent Units (Weighted Average Method) = Beginning Goods In process + Units Completed + Ending Goods x % of completion
Direct Materials: 25,000 + 110,000 + 30,000 x 100% = 165,000
Direct Labor: 25,000 + 110,000 + 30,000 x 30% = 144,000
Remember: In the weighted average cost system the units in process at the beginning are count as a full equivalent unit of production.
<span>This is a tricky question, because
most of the answers provided are correct. For instance, by raising taxes, the
government drops down the demand rates, as well as by decreasing the money
supply (in that case, it also prevents economy from falling into an inflating
situation). As for balancing the budget, this economical move entails
decreasing the public expenditure and, therefore, contracting the demanding economical
figures too. </span>