Assume that a consumer has a given budget or income of $12, and that she can buy 2) only two goods, apples or bananas. The price
1 answer:
Answer: 16 Banana's or 8 Apples
Explanation:
Budget constrain is a mathematical expression which shows us the quantity of goods that can be purchases at given prices and income. Since, income of the consumer is limited, he must allocate his consumption in a way that he can buy maximum goods at the given prices.
The budget constrain faced by the person is
If the person spends all his income on Apple's, he buys
= 8 Apples
If the person spends all his income on Banana's, he buys
= 16 Banana's
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Answer:
8%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-300
Cash flow each year from year 1 to 4 = × $300 = $24
Cash flow in year 5 = $300 + 24 = $324
IRR = 8%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.