Answer:
a. 9.43%
Explanation:
IRR is the rate of return that makes initial investment equal to present value of cash inflows
Initial investment = Annuity*[1 - 1 /(1 + r)^n] /r
1250 = 325 * [1 - 1 / (1 + r)^5] /r
Using trial and error method, i.e., after trying various values for R, lets try R as 9.43%
1250 = 325 * [1 - 1 / (1 + 0.0943)5] /0.0943
1250 = 325 * 3.846639
1250 = 1,250
Therefore, The project IRR is 9.43%
TRUE !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Answer:
Explanation:
A) Energy can be both a fixed cost and a variable cost for a company. This is due to the sense that energy in the form of fixed electricity bill even when no production takes place (telephone bill), a fixed cost and electricity bill when production takes place would be a variable cost
B) An increment in fixed cost will shift the ATC curve to the right while the MC curve would remain the same because MC is the change in variable cost as output increases and is not related to fixed cost.
C) Corn cost is a variable cost for ethanol producer as each unit of corn is used to produce ethanol and thus use of corn is reliant upon how much ethanol is produced. This makes corn a variable input dependent on the production of output, therefore, the cost of corn is variable.
D) An increment in the variable cost will shift the ATC curve to the right and individual MC curve to the right.
True , Cyclical unemployment can be negative.
Explanation:
Cyclical unemployment may be negative as well — when the economy hits its productivity and will be in the economic growth cycle process (works outside its PPC), then cyclical unemployment will be negative. The current unemployment rate is below the standard rate of unemployment.
The given statements are different in each scenario.
There are three elements of employment:
• Structural unemployment, which happens when Jobless people are also not qualified to work
• Frictional unemployment, due to the time needed to find one another by job-seekers and accessible employers
• Cyclical unemployment, because of the status of the business cycle unemployment
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