Answer:
The evaluation criteria used in economic analysis is:
d. Financial units (dollars or other currency)
Explanation:
The evaluation criteria for economic analysis is usually based on financial units, which are national currencies. They represent the monetary values of the elements of any economic analysis. For instance, to ascertain the profitability or otherwise of a transaction, the sales value is compared to the costs. The excess of the sales value over the costs is regarded as the profit. The reverse is regarded as the loss. The evaluation criteria for these two economic analysis is based on the financial units of sales and costs expressed as national currencies.
??????????????? What is the Question?
Answer:
MIRR = 4.32%
Explanation:
year cash flow
0 -$795,000
1 $375,000
2 -$500,000
3 $600,000
4 $400,000
Since there are 2 cash outflows, the IRR calculation would result in two different answers (1 for every cash outflow), that is why we use the MIRR function in excel.
=MIRR (cash flows, finance rate, reinvestment rate)
=MIRR (-795000 to 400000, 5.5%, 5.5%)
Since we are only given one interest rate, we will use it as our finance rate and our reinvestment rate.
MIRR = 4.32%
I guess the correct answer is $15.77
Franktown Meats just announced that they are increasing the annual dividend to $1.75 and establishing a policy whereby the dividend will increase by 2% annually thereafter. One share of this stock be worth six years from now is $15.77 if the required rate of return is 14.5%
Answer:
It is characteristic of CAPITAL goods that they are not used up in the short run. A society can choose to SACRIFICE some quality of life now BY PURCHASING fewer consumer goods ANS SAVING MONEY in order to build up its stock of capital goods. This will lead to a HIGHER QUALITY OF LIFE and more consumer goods PURCHASED AND CONSUMED later on.
Explanation:
A consumer can choose between saving and spending money, that is measured by the marginal propensity to consume or the marginal propensity to save. Money that is spent now, will provide a certain satisfaction in the present, but nothing in the future. Money saved will not provide a certain satisfaction in the present, but should provide much more satisfaction in the future since it should grow as time passes.
