The Economic boom<span> of the 1920s saw rapid growth in GDP, production levels and living standards. The growth was fuelled by new technologies and production processes such as the assembly line. The </span>economic<span> growth also caused an unprecedented rise in stock market values – share prices increased much more than GDP.
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Answer:
$7,536
Explanation:
As we know Net Present value is calculated by discounting each years cash flows using using the required rate of return.
Saving in labor and other costs per year = $78,000
Initial Investment = $360,000
Numbers of years = 7 years
Required rate of return = 11%
As the saving are constant each year, so we will use the present value of annuity formula to calculate the present value of the cost savings.
Present value of cost saving = $78,000 x ( 1 - ( 1 + 11% )^-7 ) / 11% = $78,000 x 4.712 = $367,536
Net Present Value = Present value of cost saving - initial Investment
Net Present Value = $367,536 + $360,000 = $7,536
Answer:
flexibility
Explanation:
A small business can be described as a privately owned corporation, partnership, or sole proprietorship. Its staff, profits and scale of operation is smaller than that of larger sized corporations.
Due to the fact that small businesses are less monitored and less bureaucratic, they tend to be more flexible and they quickly adjust to trends in the economy
The amount of the salvage may be calculated using various equations. We are given that the sound tracker is retired about some time and this was initially bought at $41,000. However, we are given that the accumulated depreciation is also equal to $41,000.
Since the initial payment is similar to the accumulated depreciation hence, the salvage value is zero.
Answer:
a. Rate of return is 4.81%
b. He will receive the same return of 4.81% percent as the fund manger have.
Explanation:
a.
Start of the year NAV = $22 x 103% = $22.66
End of the year NAV = $23.10 x 0.92 = $21.25
Change in Price = 21.25 - 22.66 = - $1.41
Rate of Return = (( Change in NAV + Distribution received ) / start of the year NAV) x 100
Rate of Return = (( -$1.41 + $2.5 ) / 22.66 ) x 100
Rate of Return = 4.81%
b.
He will receive the same return of 4.81% percent as the fund manger have.