Business casual, you don't want to look too fancy, or anything.
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Projects:
A
Io= -$ 800,000
Perpetual cash= $ 90,000
B
Io= 100,000
Perpetual cash flow= 20,000
C
Io= 300,000
Perpetual CF= 25,000
D
Io= 400,000
Perpetual CF= 60,000
To find the present value of a perpetual annuity we need to use the following information:
PV= cash flow/i
A) i= 0.16
A= -800000 + (90000/0.16)= -237,500
B= -100000 + (20000/0.16)= 25,000
C= -300000 + (25000/0.16)= -143,750
D= -400000 + (60000/0.16)= -25000
Only project B is pursuable.
B) i=10%
A= 100,000
B= 100,000
C= -50,000
D= 200,000
Only project C is not pursuable. Project D has the greatest net present value.
C) With i=16% only project B should be pursued. With i=10%, project D is the best.
Answer:
the answer is reaserching
Answer:
1.90%
Explanation:
There is the accordance or connection between nominal and real interest rates. It is basically possible to convert from nominal interest rates to real interest rates. According to the Fisher, there is a equation that's called the Fisher Equation:
Real interest rate ≈ nominal interest rate − inflation rate.
On our example,
Inflation rate in October- 3.33%
Inflation rate in November- 2.90%
Nominal interest rate in October- 4.75%
Nominal interest rate in November- 4.80%
In October,
Real interest rate=4.75%-3.33%=1.42%
In November,
Real interest rate=4.80%-2.90%=1.90%
As a result, we see that there is 1.90% real interest rate in November and the real interest rate has increased 0.48% in November compared to October.
Answer: i hope this helps some its all i can do for now
Explanation:
