Answer:
A) Discounted cash flow
Explanation:
The IRR gives a rate as an answer, which represent the yield of the project.
The NPV gives a valuation in dollars, same for the cost benefit analysis.
Only the payback discounted cash flow gives the answer at which point the project pays itself. Which is an answer in years or month.
What specifically do you need help with?
Given:
Present value, P=179500
interest per period (month), i = 0.0475/12
number of periods (month), n=30*12=360
Interest charged after first month
Interest=P*i
=179500*0.0475/12
=710.52
Monthly payment (just to confirm that A > Interest)
A = Pi(1+i)^n/((1+i)^n-1)
=179500*(0.0475/12)(1+0.0475/12)^360/((1+0.0475/12)^360-1)
= 936.36 (to the nearest cent.
> 710.52 so ok.
Answer:
D. $520 favorable is the correct answer.
Explanation:
