Answer:
Project A Project B
Initial investments ($170,000) ($115,000)
CF Year 1 $42,500 $34,500
CF Year 2 $58,500 $52,500
CF Year 3 $82,795 $68,500
CF Year 4 $92,900 $68,500
CF Year 5 $67,500 $68,500
using an excel spreadsheet and the IRR function, the internal rate of return of each project is:
- Project A's IRR = 26.02%
- Project B's IRR = 36.31%
We can use the discount rate (12%) to calculate the projects' NPV, we do not need it to calculate their IRR:
- Project A's NPV = $70,855
- Project B's NPV = $88,815
Answer:
The correct answer is option (B) perfectly inelastic
Explanation:
It is a known facts that anytime tax is imposed on any goods at any given time, the tax falls totally on the consumers provided the elasticity of demand is zero.
Since increase in tax doesn't affect the demand for goods and services, and no matter the increment in price from the supplier, the demand remains the same. Therefore, the demand curve for goods Y is said to be perfectly inelastic.
GDP (gross domestic product) is one of the primary factors used to test the countries economic health. It represents the total dollar value of all goods and services produced over a specific period.
Hope this helps!
Answer:
GDP = 280 billion
Net investment = 10 billion
National income = 270 billion
Explanation:
given data
Consumption = 200
Depreciation = 20
Retained earnings = 12
Gross investment = 30
Imports = 50
Exports = 40
Net foreign factor income = 10
Government purchases = 60
solution
we get here GDP that is express as
GDP = Consumption + Gross investment + Government purchases + Net exports ...................1
Net exports = ( Exports - Imports)
so put here value
GDP = 200 + 30 + 60 + 40 - 50
GDP = 280 billion
and
Net investment will be as
Net investment = Gross investment - Depreciation ...............2
Net investment = 30 -20
Net investment = 10 billion
and
National income = GDP - Depreciation + Net foreign factor income ............3
National income = 280 - 20 + 10
National income = 270 billion
