Answer:
The project return is lower than the minimum accepted of 15% thus not profitable for the company
Net Present Value -1.279,86
Explanation:
<u>Loan Present value</u>
PMT of the loan:
PV 65,000
time 4
rate 0.12
C $ 21,400.238
Present value at MARR:
C $21,400.24
time 4 years
rate 0.15
PV $61,097.2175
<u>Salvage value:</u>
Salvage $9,000
time 9 years
rate 0.15000
PV 2,558.36
<u>Cost savings present value:</u>
Cost savings per year: 25,000
less maintenance expenses (13,000)
net cash flow 12,000
C $ 12,000
time 9 years
rate 0.15
PV $57,259.0070
Net Present Value
PV cost savings + PV salvage - PV loan payment
57,259 + 2,558.36 - 61,097.22 = -1.279,86
Answer:
The productivity will be higher in Brazil.
Explanation:
Below is the given values:
Total annual output = $600 million
Working hours = 30 million hours
Total annual output in Peru = $800
Working hours in Peru = 50 million hours
The productivity will be higher in Brazil because per hour productivity is 600/30 = 20 million. While in Peru the per hour productivity is 800/50 = 16 million
Moreover, the variation in the living standard in the country will be due to the differences in productivity.
Answer:
Usually, when a price ceiling is imposed, the demand for the product goes up. This can cause a shortage of products because of their high-demand. Conversely, the opposite occurs when a price floor is imposed.
It was because of the Great Recession. This financial crisis caused several governmental policies regarding federal funds to be restructured (although changes in the policies were already in discussion even before the disaster). Since then, the federal funds rate has always been near to zero and basically negligible. Hence the Great Recession of 2008 was the reason behind the last federal funds transaction being in 2008.