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UkoKoshka [18]
2 years ago
6

The investment analysis method that uses the hurdle rate as a benchmark to accept or reject the proposal is the ______ method.

Business
1 answer:
quester [9]2 years ago
7 0

The correct answer is internal rate of return for investment analysis.

The Internal Rate of Return (IRR), a statistic used in financial analysis, is used to determine the profitability of potential investments. IRR is a rate of return that drives the net present values (NPV) of all cash flows to zero in a discounted cash flow analysis.

Keep in mind that the IRR does not accurately reflect the development's true financial value. The NPV becomes negative due to the annual return.

The internal rate of return is the anticipated yearly acceleration from an investment (IRR).

The ultimate goal of IRR is to calculate the rate of discount that reduces the investment's initial cash balance outlay to the purchase price of all of its original nominal yearly profits.

The greatest tool for analyzing corporate finance projects so order to evaluate and compare likely yearly rates of return across time is the internal rate of return (IRR).

IRR can help investors determine the investment return of different assets and is also used by businesses to decide which infrastructure improvements to invest in.

Learn more about Internal Rate of Return here:

brainly.com/question/13373396

#SPJ4

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Suppose you've just inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 in a non-interest-bear
Aleksandr-060686 [28]

Answer:

$800

$1,000

The quantity of money demanded decreases as the interest rate rises.

Explanation:

a

To calculate the opportunity cost on government bond at 8%, we use the following method

Opportunity Cost for 8% interest rate on Government Bonds

= (8/100)%× $10,000

= 0.08% ×$10,000

= $800

To calculate the opportunity cost government at bond on 10%, we use the following method

Opportunity Cost for 10% interest rate on Government Bonds

= (10/100)%× $10,000

= 0.1%×$10,000

= $1,000

b. The quantity of money demanded decreases as the interest rate rises.

4 0
3 years ago
A number of business transactions carried out by Smalling Manufacturing Company are as follows.
zavuch27 [327]

Answer and Explanation:

The indications of the effect of each of following transactions are as follows

Particulars                Assets                  Liabilities          Stockholder equity

a. Borrowed            

money from bank    Increase                Decrease         No effect

b. Sold land for        Cash increase       No effect         No effect

cash at                     Land decrease

a price equal

to its cost

c. Paid a liability      Decrease                Decrease        No effect

d. Returned for credit  Decrease          Decrease        No effect

some of the office  

equipment previously

purchased on credit

but not yet paid for

e. Sold land for cash at   Cash increase       No effect         Increase as Gain

a price in excess of cost  Land decrease

f. Purchased a computer   Increase              Increase          No effect

on credit

g.  The owner invested

cash in the business         Increase               No effect         Increase

h. Purchased office       Increase in office    No effect          No effect

equipment for cash       Decrease in cash

g. Collected an              Increase in cash    No effect          No effect

account receivable        Decrease in account

                                       receivable

7 0
4 years ago
Bankruptcy is a process when a lender tries to obtain money from an individual's employer to pay an unpaid debt.
ololo11 [35]
The answer to this question would be false because when you file for bankruptcy you are not asking to get help to pay your debt you are asking to have it expunged.
6 0
3 years ago
Read 2 more answers
If the annual real rate of interest is 5% and the expected inflation rate is 4%, the nominal rate of interest would be approxima
serg [7]

If the annual real rate of interest is 5% and the expected inflation rate is 4%, the nominal rate of interest would be approximately 9% (5% + 4% = 9%).

What is real rate of interest?

An interest rate that has been prorated for inflation is referred to as a "real interest rate." The nominal interest rate is subtracted from the inflation rate to arrive at the real interest rate. The real interest rate is equal to the nominal interest rate less the inflation rate, to put it mathematically.

What is the inflation rate definition?

The rate of price growth over an extended period of time is known as inflation. The cost of living in a nation has increased, or prices have generally increased. These are examples of broad measures of inflation.

Learn more about real interest rate and nominal interest rat: brainly.com/question/13324776

#SPJ4

4 0
2 years ago
The stock price of Baskett Co. is $54.20. Investors require a return of 12 percent on similar stocks. If the company plans to pa
Alchen [17]

Answer:

5.08%

Explanation:

using the Gordon growth model we can calculate the expected growth rate:

current stock price = dividend / (required rate of return - growth rate)

$54.20 = $3.75 / (12% - g)

12% - g = $3.75 / $54.20

12% - g = 6.92%

g = 12% - 6.92% = 5.08%

5 0
3 years ago
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