Answer:
IRR= 21.86%
Explanation:
Giving the following information:
Initial investment (PV)= $10,000
Cash flows (PMT)= $4,000 per year
Number or years (n)= 4
<u>It is extremely difficult to calculate the IRR using the formula. We will use the financial calculator.</u>
Function: CMPD
n= 4
I%= SOLVE = 21.86%
PV= 10,000
PMT= -4,000
IRR= 21.86%
Answer:
The statement that is false here is A) trailing P/E ratio are used for valuation because it is based on actual not expected earnings.
Explanation:
For the valuation purposes , the most preferred P/E ratio is forward P/E ratio, not the trailing P/E ratio because here we are more concerned about future earnings not the current. These forwards earnings are the earnings which are expected over the coming year or 12 months of time.
Answer:
number of pizza per our = 10
number of worker = 4
number of pizza per our per worker =2.5
Explanation:
Answer:
the right to earn income from the good
Explanation:
Property rights is an economic term that emphasis on how a resource can be used and owned. Property rights differentiate various goods on the basis of their ownership and usage. The fourth property right is the right to earn income from a good. It’s a right that allows an individual to sell goods and services and earn money.
Answer:
The present value of the par value of the bond is: $22,820.
Explanation:
As the characteristics of the bond, at the end of the bond period, which is 10 year, the bond's issuer will have to repay the face value of the bond to bond's holders. Thus, the future value of the bond = par value of the bond = 50,000.
As the bond pays coupon twice a year during 10 year with the coupon rate of 8% per year. There are 20 compounding periods, and the discount rate is 8%/2 = 4%. Thus, the present value factor of 20 periods at 4% is 0.4564 ( 1 / 1.04^20 ) should be used for calculating the present value of the par value of the bond.
=> Present value of the par value of the bond = future value of the bond x present value factor = 50,000 x 0.4564 = $22,820.