Answer: The answer is provided below
Explanation:
1. Underfinancing: One main reason that cause budget overrun and less than expected benefits is underfinancing. Allocation of an adequate amount of budget to project at the beginning will lead to a budget overrun or failure.
2. Unfeasible Cost Estimates: Estimation of cost is a vital process in a project and another common reason for budget overrun. When the cost is calculated by inexperienced or unqualified personnel, the project is going to face budget overruns.
3. Underestimating the Project Complexity: Big projects are usually at the risk of overrunning its budget as a result of bigger complications that may arise during its execution.
4. Lack of Resource Planning: When one fails to plan the resources that are available effectively, then this would lead to a budget overrun and less benefits. A common mistakes that cause overrun is failure to estimate the resources which would be utilized during the project.
The findings of a country's CPI report are typically reported as a percentage change from the previous issue. A positive result indicates a rise in the inflation rate as a consequence of higher consumer costs. If the contrary were to happen, prices would go down, benefiting consumers and reducing inflation.
This is further explained below.
<h3>What are consumers?</h3>
Generally, A person or group is considered to be a consumer if they have the intent to order, do order, or use goods, products, or services that they have purchased primarily for personal, social, family, household, and similar needs, which are not directly related to activities related to either entrepreneurship or business.
In conclusion, When a nation releases a new Consumer Price Index report, the findings are presented in the form of a percentage change in comparison to the most recent issue. In the event that the result is positive, it indicates that there has been a rise in the overall level of consumer prices and that the rate of inflation is climbing. In the alternative scenario, prices paid by consumers would fall, and the rate of inflation would fall along with them.
Read more about consumers
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Answer:
a. 4 years and 4.22 years
b. -$31,350 and $27,615
c. Project Nuts
Explanation:
a. The formula to compute the payback period is shown below:
= Initial investment ÷ Net cash flow
For project soup, it would be
= $600,000 ÷ $150,000
= 4 years
For project nuts, it would be
= $900,000 ÷ $213,000
= 4.22 years
b. The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor - initial investment
For project soup, it would be
= $568,650 - $600,000
= -$31,350
The present value is computed below:
= Annual cash flow × pvifa for 5 years at 10%
= $150,000 × 3.791
= $568,650
For project nuts, it would be
= $927,615 - $900,000
= $27,615
The present value is computed below:
= Annual cash flow × pvifa for 6 years at 10%
= $213,000 × 4.355
= $927,615
Kindly refer pvifa table
c. The project Nuts should be accepted as it has positive net present value.
Answer:
The present Value of my winnings = $4,578,716.35
Explanation:
An annuity is a series od annual cash outflows or inflows which payable or receivable for a certain number of periods. If the annual cash flow is expected to increase by a certain percentage yearly, it is called a growing annuity.
To work out the the present value of a growing annuity,
we the formula:
PV = A/(r-g) × (1- (1+g/1+r)^n)
I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity (winnings) as follows.
A/(r-g)
= 460,000/(12%-3%)
= $5,111,111.11
(1- (1+g/1+r)^n
1 - (1+3%)/(1+12%)^(27)
=0.8958
PV = A/(r-g) × (1- (1+g/1+r)^n)
$5,111,111.11 × $0.8958
= $4,578,716.35
The present Value of my winnings = $4,578,716.35
Answer:
This allows WeBuy&Sell.com to earn high profits at a very low cost. According to the given scenario, WeBuy&Sell.com has high scalability.
Explanation:
In an economic context, a scalable business model implies that a company can increase sales given increased resources.
