Answer:
d. Choose Option B because it has a higher NPV
Explanation:
The computation is shown below:
For Option A:
Investment = $10 million
Present Value of cash flows = Cash flow ÷ Discounting rate
= $2 ÷ 10%
= $20 million
Now
NPV = $20 - $10
= $10 million
We know that
IRR is the rate at which the NPV will be zero
So, 2 ÷ r - 10 = 0
r = 20%
For Option B:
Investment = $50 million
Present Value of cash flows = $6.5 ÷ 10% = $65 million
NPV = $65 - $50 = $15 million
we know that
IRR is the rate at which the NPV will be zero
So, 6.5÷ r -50 = 0
r = 13%
Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.
However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage
I would suggest B because I wouldn’t believe would want their house to be gone
Answer:
Balance of payments (BOP)
Explanation:
The balance of payments is referred to details of the transaction that held between two entities either in the same country or outside the country of a particular time period.
when the transaction was done for another country, there is a deduction of credit from the balance of payment and when transaction was done for the same country then credit is added to the BOP
Yea. Like with Nike always being next to Lebron or Curry with Under Armor.
The increase will reflect in the GDP deflator and the Consumer price index.
The GDP Deflator is used to measure the level of prices of all new and domestically produced goods and services in an economy.
- So, when there is an increase in price, the nominal GDP (Increased), so the GDP deflator Increased as well.
.
Consumer Price index is used to measure the inflated price of goods and services which are faced by all consumer households.
- So, when there is an increase in price, there is change in CPI .
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