Answer:
Project C
Explanation:
If we make the decision based on the net present value (NPV) then we will choose the project that has the greatest NPV.
NPV is the sum of the present value of project´s cash flows. To have the present value of a cash flow (inflows and outflows) we use a discount rate and the year of the cash flow (the formula is attached).
When we have al cash flows in present value, we sum them including the investment (which is most of the time negative and it is in present value so we don´t have to transform it). This is the NPV (formula attached).
If the NPV is greater than cero, then the project is creating value, the investors will recover the investment and will have profits. So if the NPV of project is greater than the NPV of another, that project is creating more value.
<span>One criticism against the ‘supply-slide’ cuts in the marginal
tax rates is that they fail to increase the aggregate supply in a more rapid
way, in which are the goods and services in total that are available in the
market and that they fail to increase it more than of the aggregate demand
which is the goods and services’ final demand.</span>
Answer: 10%
Explanation:
When the price of a bond is at par, it means that the coupon rate and the Yield to Maturity are the same.
The Coupon rate is the interest rate that the Issuer of the bond pays the bond holders as a percentage of Par.
The Coupon payment here is $100 and the rate is;
= 100/1,000
= 10%
<em>Coupon Rate = 10% = Yield to Maturity </em>
Answer:
The dimension that will minimize the cost is 55 and 110(55 × 110)
Explanation:
The garden area is 6050 ft². Along the driveway the costs is $6 per foot while the other 3 area sides cost only $2 per foot.
The garden has four sides so it a rectangle .
a = length along the driveway
b = length perpendicular to the driveway
The area = a × b
ab = 6050
b = 6050/a
minimize cost = 6a + 2a + 2b + 2b
minimize cost = 8a + 4b
cost = 8a + 4b
y = 8a + 4(6050/a)
y = 8a + 24200/a
y = 8a + 24200/a
differentiate the rate of change of the cost with respect to length.
y'(a) = 8 - 24200/a²
(8a² - 24200)/a² = 0
cross multiply
8a² = 24200
a² = 24200/8
a² = 3025
a = √3025
a = 55
inserting the value of a in the area formula
ab = 6050
b = 6050/55
b = 110
I would say this would be true as if extra capital like an electric shovel in an open pit mine resulted in a fall of output then of course it should be questioned why that occurred since it is a result that is counterintuitive ie does not make sense as one would expect an increase in capital would result in an increase in output.