Try to avoid judging international business partners
Answer:
The Firm should not Buy and Install the press as it delivers a negative NPV of -$24,924 at 11% discount rate over its 4 year operations
Explanation:
The General rule is to appraise the investment based on various appraisal techniques.
A technique that should be considered must have special focus on the time value of money, the required rate of returns expected by the firm and other Cashflow considerations.
The Net Present Value (NPV) approach will be the best method to proceed with.
The NPV approach typically falls under the following decision tree:
a. If NPV is negative (Reject the proposal)
b. If NPV is positive (Accept if it's a singular project, Accept the highest positive NPV if it's for mutually exclusive Projects)
c. If Zero (this is the breakeven line at which the Project covers all its cost but does not return a profit.) Also referred to as the IRR
Kindly refer to the attached for detailed workings
Answer:
Rate of change of rent [Seattle] = $95.5
Explanation:
Given:
2009 Rent $583
2015 Rent $745
2009 Boston $1,577
2015 Boston $2,150
2009 Seattle $958
2015 Seattle $1,600
Find:
Rate of change of rent [Seattle]
Computation:
Rate of change of rent [Seattle] = Change in price / Change in time
Rate of change of rent [Seattle] = [$2,150 - $1,577] / [2015 - 2009]
Rate of change of rent [Seattle] = $573 / 6
Rate of change of rent [Seattle] = $95.5
Might seem controversial though :) but I am pretty sure that the correct variant that properly shows the converse of given statement is the third one. As you know, the converse (in plane language) has the same meaning of the statement just by replacing two points. This statement has positive tone (if you make - you ll have) so it's directly coincides with C(you have, cause you have made)
Answer:
The accounting cost and the economic cost associated with Joe's computer software business is $75,00 and the $165,000 respectively.
Explanation:
The computation of the accounting cost and the economic cost is shown below:
Accounting cost = Other Expenses + Salary paid to himself
= $35000 + $40,000
= $75,000
Economic cost = Accounting cost + Salary expense + Rent expenses
= $75,000 + $65,000 + $25,000
= $165,000
