Answer: Labor
Explanation: Human Resources (labor) The quantity and quality of human effort directed toward producing goods and services (also called labor).
Answer:
A) 19.91%
Explanation:
Net present value of cash flow at 19.91% can be calculated as follows
- 100000 + 30000/1.1991 + 30000/ (1.1991)² + 30000/(1.1991)³ + 30000/ (1.1991)⁴ +30000/(1.1991)⁵ + 30000/ (1.1991)⁶
= -100000 + 25018 +20864 +17400 +14511 +12101 +10092
= 0 ( approx )
So the IRR for the project is 19.91 % .
Answer:
(d) debt; opposite direction
Explanation:
Bonds or debentures represent fixed interest bearing instruments issued by corporates to raise long term funds i.e usually greater than 1 year repayable after a fixed duration.
Bonds could be of various forms such as zero coupon bonds, deep discount bonds, face value bonds etc
The common aspect of all being bonds represent debt which a corporation owes which must be repaid after a fixed duration. Also bonds demand periodic interest payments i.e fixed obligation which cannot be refused by the issuer company.
There is an inverse relationship between bond prices and market interest rates.
Reason : This is because if a higher interest rate prevails in the market than the coupon rate offered by the issuer, the issuer will have to reduce the price of it's bonds so as to make them attractive else investors would rather invest in other bonds in the market offering a higher rate of return.
