Answer:
Year Cash Flow (A) Cash Flow (B)
0 -37,500 -37,500
1 17,300 5,700
2 16,200 12,900
3 13,800 16,300
4 7,600 27,500
1) Using an excel spreadsheet and the IRR function:
IRR project A = 20%
IRR project B = 19%
2) Using the IRR decision rule, Bruin should choose project A.
3) In this case, since the length of the projects is only 4 years, then there should be no problem with the IRR decision rule, but for projects with longer time lengths, the discounts rates might vary and the best option is to use the modified internal rate of return (MIRR). But in this case the NPV of project B is higher, then Bruin should probably project B because it has a higher NPV. The NPV is always more important then the IRR.
4) Again using an excel spreadsheet and the NPV function:
NPV project A = $6,331
NPV project B = $8,139
5) first we must subtract cash flows from A by the cash flows from B:
1 $11,600
2 $3,300
3 -$2,500
4 -$19,900
then we calculate the IRR = 16%
Bruin should be indifferent between the two projects at a 16% discount rate. That means that at discount rates above 16%, you should choose project A, but at discount rates below 16%, you should choose project B
<h2>Jill's interest in the property will: <u>Pass to Jill's heirs </u>(Option B)</h2>
Explanation:
Let us understand the meaning of tenancy: It is the "possession of any property which might be land or building and get connected as tenant".
In contrast, ownership means the property belongs that person alone or in partnership.
Understanding the above terms, We can say, Jack and Jill have been a tenant and after ten years, Jill dies. So the rest of the interest in the property will definitely go to his heirs only.
It cannot be passed to Jack because Jill's interest will not be paid by other person except for Jill's heirs. Jack heirs are no way responsible or own the property of Jack.
The correct option is (d).
- Choosing the best mutual funds by comparing performance of mutual funds against a benchmark index.
- Money market funds, bond funds, stock funds, and target date funds are the four primary categories into which most mutual funds fit.
- Each variety has unique characteristics, dangers, and benefits.
- The rate of return is subtracted from the risk-free rate of return for the investment, and the result is divided by the return on investment's standard deviation.
- The Sharpe ratio tells investors if an investment's results are the result of prudent investing decisions or an outcome with excessive risk.
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because that would make you spoiled, and no one will like you. And some things aren't buyable
