Answer:
1./
INITIAL INVESTMENT
= $1600000
ANNUAL NET CASH FLOW
= NET INCOME + DEPERICATION
= $250000 + [($1600000 - $350000) / 8]
= $250000 + $156250
= $406250
SALVAGE VALUE
= $350000
NPV
= -$1600000 + $406250 * PVIFA 10%, 8 PERIODS + $350000 * PVIF 10% *PERIOD
= -$1600000 + $406250 * 5.3349 + $350000 * 0.4665
= -$1600000 + 2167303.13 + $163275
= $730578.13
2./
AS THE NPV IS GREATER THAN 0 OR POSITIVE THE IRR IS GREATER THAN 10%
3./
INITIAL INVESTMENT
= $1600000
ANNUAL NET CASH FLOW
= NET INCOME + DEPERICATION
= $250000 + [($1600000 - $350000) / 8]
= $250000 + $156250
= $406250
SALVAGE VALUE
= $350000
NPV
= -$1600000 + $406250 * PVIFA 20%, 8 PERIODS + $350000 * PVIF 20% *PERIOD
= -$1600000 + $406250 * 3.8372 + $350000 * 0.2326
= -$1600000 + $1558862.5 + $81410
= $40272.5
4./
AS THE NPV IS GREATER THAN 0 OR POSITIVE THE IRR IS GREATER THAN 20%
Explanation:
The most reliable evidence that an economy is in the Expansion phase of the business cycle are a rising GDP and a declining unemployment rate.
In terms of the economy, an expansion is a time when a country's overall economic productivity is rising.
The bulk of business entities begin to generate enough profit from their operations at this point. Their capital reserve increased as a result of this. As a result, they frequently spend in various areas of their companies to boost productivity. (such, spending money on new technology or employing more people).
The entire consumption, investments, government spending, and net export of a nation are added to determine its GDP. These all tend to rise in value amid economic expansion. The overall GDP will consequently grow.
To learn more about GDP click here
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Answer: The advantages would be efficiency and accountability; the disadvantages would be resource hoarding and low quality.
Explanation: There will be more trust between workers and indivuals, more accountability as well.
Answer:
$5.76
Explanation:
Calculation to determine the price of a put option with the same exercise price
We would be Using put-call parity and solving for the put price
$67 + P = $70e^–(.026)(3/12)+ $3.21
$67 + P = $70e^–(.026)(.25)+ $3.21
$67 + P =190.2797^–(0.0065)+ $3.21
$67 + P =$69.5465+ $3.21
$67 + P =$72.7565
P=$72.7565-$67
P=$5.7565
P=$5.76 (Approximately)
Therefore the price of a put option with the same exercise price will be $5.76
I tink its C. now 100% sure
hoped i helped plz make me the brainliest thx
