A risk premium is a measure calculated to reflect the riskiness of future profits. is The metric denotes the difference between the expected return on a market portfolio and the risk-free rate. The value of a firm is larger the lower is the risk premium used to compute the firm's value.
Answer:
incremental IRR 15,404%
Project A is better than project B
Explanation:
the incremental IRR will be the internal rate of return after subtracting the cashflow of the smaller project from the bigger project.
Project A Project B Difference
F0 -54500 -79400 -24900
F1 16400 0 -16400
F2 28900 48300 19400
F3 31700 42100 10400
Now, we calcualte the internal rate of return of this "differential" project:
We have a project that reuqires an investment of 24,900
Then another of 16,400 and then, we receive 19,400 and 10,400
we use excel IRR function and get -15.4035%
As the differential IRR is negative can determnate the better project which is A
In general, reducing the number of periods (n) used to pay off credit card debt but keeping the present value (PV) and interest rate (i) the same will increase the monthly payment (P).
Debt results once<span> a </span>shopper<span> of a </span>MasterCard<span> company purchases </span>an<span> item or service through </span>the card<span> system. The late payment penalty itself </span>will increase the number<span> of debt </span>the buyer<span> has.</span>
Answer:
B. inductive reasoning
Explanation:
In inductive reasoning the evidences for the study and the conclusion are already available at the time, when the study is done, in the premises itself. No outer reference needs to be taken, or in case if it is taken then it can be utilized for the study, but basic reference and evidence is always available in the premises itself.
In the given instance also, the traits are available and the study is completed through pea plants which were available closely.
Although the technology was not available and the study is completed based on the evidence of pea plants.