Answer:
Machine B has a higher NPV therefore should be produced
Explanation:
The machine with the higher Net Present Value (NPV) should be produced .
NPV of Machine A
PV of cash flow
PV of annual profit = A × (1- (1+r)^*(-n)/r
A- 92,000, n- 11, r- 12%
PV = 92,000 × (1- (1.12^(-11)/0.12 = 546268.32
PV of salvage value = 13,000× 1.12^(-11)= 3737.189
NPV = 546268.320 + 3737.189 -250,000 = $300,005.50
NPV of Machine B
A- 103,00, n- 19, r- 12%
PV = 103,000 × (1- (1.12^(-19)/0.12= 758675.0165
Pv of salvage value = 26000× 1.12^(-19)= 3018.776199
NPV =758675.0165 + 3018.77 -460,000 = $301,693.79
Machine B has a higher NPV , therefore should be produced.
Answer:
Venture Capital
Venture capital is the type of partnership in which two or more than two firm or people invest in a project or assets that has higher tendency of returns payback.
For equipment purchased from the United States, European businesses will pay less in euros.
<h3>What would happen if the US dollar increased in value relative to the euro?</h3>
The dollar now "buys" more euros if the exchange rate between the two currencies rises to $1 for 0.94€. As a result, purchasing European items is now more affordable. As U.S.-made goods are now more expensive, U.S. exports would decrease while imports from nations that use the euro would increase.
<h3>What causes the value of the US dollar to rise?</h3>
An increase in the value of one currency in comparison to another is known as currency appreciation. For a variety of factors, including governmental policies, interest rates, trade balances, and business cycles, currencies appreciate against one another.
learn more about dollar is said to appreciate against the euro here brainly.com/question/13825174
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Answer:
A common market
Explanation:
A common market has no barriers to trade among member countries, includes a common external trade policy, and allows factors of production to move freely among members.
A monetary union has all the features of a common market and participating countries have a common currency.
I hope my answer helps you.
Answer:
B
Explanation:
The Internal Rate of Return (IRR) is the profitability or the ability to generate revenues of the money that remains invested during the life of a proyect. It is also known as the discount rate or cost rate that makes the Net Present Value (NPV) equal to cero. When the NPV is greater than cero, then the proyect creates value ( it is attractive to investors) if it is less than cero, then the proyect destroys value and investors are going to loose money. If the NPV is equal to cero, then investors recover their investment but they do not obtain gains nor losses. The minimum rate of return is the one in which at least investors obtain the same amount ( in present value) of their investment; that is the internal rate of return (IRR).
