All categories

3 years ago

7. An investment costs $1,000 (CF at T = 0) and is expected to produce cash flows of $50 at the

Business

1 answer:

Sergeeva-Olga [200]3 years ago

8 0

Answer:

5.0%

Explanation:

You can solve this using financial calculator .I'll be using (Texas Instruments BA II Plus)

<em>Note; If using same calculator as mine, key in the number first then the function key.</em>

Initial investment ; PV = -1000

Recurring payment ; PMT = 50

Duration of investment; N = 5

Future Value at the end of 5 years ; FV = 1000

Then CPT I/Y = 5%

Therefore, the expected rate of return on this investment would be 5%

You might be interested in

The economy begins in equilibrium at point E, representing the real interest rate r1 at which saving S1 equals desired investmen

Ad libitum [116K]

Answer:

A lower equilibrium point due to decreased investment, decreased real interest rate and decreased level of savings

Explanation:

The economic graph that is referred to in the question in referred to as the IS-LM curve which depicts the intersection of the IS (Investment-savings curve) with the LM (liquidity preference-money supply) curve. This intersection determines thr equilibrium between real interest rates and the output/consumption at that level of interest rate. The IS curve is downward sloping while the LM curve is upward sloping.

The tax law change makes the investment less attractive which will cause the IS curve to pull inwards (i.e a shift to the left). This shift to the left essentially reduces the level of investment thereby lowering the demand for money for investment. This reduction in demand causes the real interest to decrease. At this decreased interest level, there is a decrease in the the level of savings (because of the lower return that is available on money saved). Therefore the impact will result in a new lower equilibrium at which the real interest rate and the levels of saving and investment will be lower than the original equilibrium level.

8 0

3 years ago

The lot is 150 feet by 90 feet. The fence is to be 8 feet tall. cost for the fence is $4.50 per linear foot, plus $.75 per squar

creativ13 [48]

Answer:

The total cost of the fence is $5,040

Explanation:

For computing the total cost of the fence, the following steps are needed which is shown below:

Step 1: First we have to find the linear of the feet which is equals to

= 2 × (sum of feet)

= 2 × (150+90)

= 480

Step 2: Now multiply the linear with the cost of the linear foot which equals to

= Linear value × cost of fence per linear foot

= 480 × $4.50

= $2,160

Step 3: compute the value of fence which is 8 feet tall

So, the value is = Linear × tall feet = $480 × 8 = $3,840

Step 4: Now, multiply step 2 with the labor square foot

So, the value is = $3,840 × 0.75 = $2,880

Step 5: Finally, add step 2 and step 3

So, the value is = $2,160 + $2,880 = $5,040

Hence, the total cost of the fence is $5,040

4 0

3 years ago

Which of the following is a nominal variable? - Education - Age - Employment status - One needs to know the attributes to determ

Alja [10]

Answer: Employment status.

Explanation:

Nominal values are values that can't be measured by the use of numbers such as is done in measuring age or counting academic achievements. Nominal values covers aspects such as; gender and employment status which is not measured in numbers.

8 0

3 years ago

Bank of College Park loaned $9,000 to a customer on May 1, 2018, accepting a 9-month, 8% note. The bank recorded the transaction

VMariaS [17]

Answer:

Interest receivable 480 Interest revenue 480

Explanation:

The adjusting entry is shown below:

Interest receivable Dr 480 ($9,000 × 8% × 8 months ÷ 12 months)

To Interest revenue 480

(Being the interest receivable is recorded)

The interest receivable is debited as it increased the assets and credited the interest revenue as it also increased the revenue

The eight months are considered from May 1,2018 to December 31,2018

6 0

3 years ago

Recently, ink has been developed that will conduct electricity. The application for this ink is to print circuitry that can be r

nalin [4]

Answer:

This is an example of how technological forces are applied to industry.

Explanation:

This here is a clear example of how an industry can enjoy benefits of technological up gradation and also goes on to show how we can apply such technological up gradations to a particular industry.

The example given in the question of such an ink which can print circuitry, is a huge game changer in the industry as the cost of radio frequency tag would be driven down , giving the chance to the firms in the industry to book more profit than before.

6 0

3 years ago