True you have to have a way to move things so other things can get better
Answer:
The answer is letter B.
Explanation:
The mean is 2.03 =($2.5+ $2 + $1.6)/ 3 ; [0.25(2.5-2.03)²] + [0.5(2-2.03)²] + [0.25(1.6- 2.03)²] = 0.055225+0.00045 + 0.046225= 0.1019
Letter B = 010
Answer:
NPV= $22,511.15
Explanation:
<u>First, we need to calculate the present value of the cash flows ∑[Cf/(1+i)^n]:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {50,000*[(1.12^10) - 1]} / 0.12
FV= $877,436.75
PV= FV/(1+i)^n
PV= 877,436.75/1.12^10
PV= $282,511.15
<u>Now, the net present value, using the following formula:</u>
NPV= -Io + ∑[Cf/(1+i)^n]
NPV= -260,000 + 282,511.15
NPV= $22,511.15
Answer:
he should withdraw $1,252.5 each year.
Explanation:
The computation is shown below:
Given that
Initial deposit (P) = $5,000
n = 5
i = 8%
Now the withdrawal amount is
AW = P(A/P, i, n)
= $5,000 (A/P, 8%, 5)
= $5,000(0.2505)
= $1,252.5
Therefore, he should withdraw $1,252.5 each year.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
