Answer:
PV of cash outflows = Annuity*(1-1/(1+rate)^number of terms)/rate
= 5000000000*(1-1/(1+9%)^6)/9%
= 22429592951.15
PV of inflows at end of 6 years= Annuity*(1-1/(1+rate)^number of terms)/rate
= 200000000*(1-1/(1+9%)^100)/9%
= 2221820304.00
PV of inflows now = 2221820304/1.09^6 = $1,324,798,853.47
NPV = -22429592951.15+1324798853.47
= -21104794098
We see that the Net Present value added by this method is negative. Hence the project is not beneficial.
Career experiences program coordinator by school includes all above
Answer & Explanation:
Fish is a common resource not a public good because it is subject to rivalry in consumption.Tragedy of commons results when property right aren't assigned for the common resource.
Answer:
Stated yield is 11.04%
expected yield is 5.78%
Explanation:
The expected yield to maturity can be computed using the rate formula in excel which is given below:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon interest the bond would pay which is 13
pmt is the amount of coupon interest the bond pays which is $1000*10%=$100
pv is the current price of the bond which is $930
fv is the face value of $1000
=rate(13,100,-930,1000)=11.04%
However the expected yield has the coupon interest reduced to one -half as calculated below:
=rate(13,100*0.5,-930,1000)=5.78%
