In my further research and understanding, the amount P that is invested now to allow withdrawals of $900 per year for the next 13 years and to permit $320 to be withdrawn is $100. I hope you are satisfied with my answer and feel free to ask for more if you have questions and further clarifications
Answer:
a. 9.43%
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator.
Cash flow in year zero = −$1,250
Cash flow each year from year one to five = $325
IRR = 9.43%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
Answer:
The identification and selection of activities to maximize the value of the activities while minimizing their cost from the perspective of the final consumer of the product or service
Explanation:
Activity-based management (ABM) is defined as the identification and selection of activities to maximize the value of the activities while minimizing their cost from the perspective of the final consumer of the product or service
Answer:
23,130,000 HK
Explanation:
Loan amount taken by sapling = 12,000,000 euros
Loan amount taken by sapling in Dollars at an exchange rate of 9 HK dollars/euros:
= 9 × 12,000,000
= 108,000,000 HK
Amount to be repaid by sapling at i= 1.5%:
= 12,000,000(1 + 0.015)
= 12,180,000 euros
Amount to be repaid by sapling in HK Dollars at an exchange rate of 7.5 HK dollars/euro:
= 7.5 × 12,180,000
= 91,350,000 HK
Amount earned by lending at i = 6%:
= 108,000,000(1 + 0.06) HK
= 114,480,000 HK
Net profit earned = Amount Earned - Amount Repaid
= 114,480,000 HK - 91,350,000 HK
= 23,130,000 HK
Net profit earned in Euros = (23,130,000 ÷ 7.5) euros
= 3,084,000 euros
