Answer:
the statement is not valid. A company can reject the 16% IRR project if it is less than its discount rate. the discount rate is the minimum acceptable rate at which a project can be accepted. so, if 16% is less than than the discount rate, the project would be rejected.
on the other hand, if the discount rate is less than 16%, the project should be accepted because the return of the project would be greater than the discount rate.
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
A = $9.99, the amount needed after 1 year
r = 0.018% = 0.00018, interest rate
n = 12, compoundings per year
t = 1, one year duration
Let P = required balance at the beginning of the year.
Then
P(1 + 0.00018/12)¹² = 9.99
1.00018P = 9.99
P = $9.988 ≈ $9.99
Answer: $9.99
The cost of adding more options. Supply and demand: would the students want to have salad for lunch, or would it go to waste?
Answer:
The correct answer is d. Economists strongly agree with the first claim, but are skeptical of the second.
Explanation:
A mutual fund is an investment alternative that consists of contributions from natural and legal persons (called participants or contributors), to form equity for their investment in shares, debt instruments or fixed income, or a combination of both ( shares + fixed income). They offer a diversified investment alternative since they invest in numerous instruments at the same time. These instruments vary according to the type of fund and are defined by the investment policy regulated by the Superintendency of Securities and Insurance. They are managed by corporations called General Fund Administrators (AGF) that are chosen by the participants themselves. It is important to choose both the administrator and the type of fund based on what best suits each personal situation.
