Answer:
B) Accept Project A and reject Project B.
Explanation:
We use excel or a spreadsheet to calculate this ratio.
See document attached.
Cash flow will solve this problem.
At moment 0 we have the investment cost or initial cost, in this case $125,000 or $135,000. From period 1 to period 3, we have different incomes. Then, we calculate the Net cash flow that is the difference between benefits and cost.
We use all the result (positive and negative) in Net cash flow to get the IRR.
<u>Project A</u>
Internal Rate of Return (IRR) 18,86%
<u>Project B</u>
Internal Rate of Return (IRR) 13,78%
So we should accept Project A and reject Project B, because in project A the IRR is bigger of required return ( 16%), we reject project B because the IRR is smaller.
Answer:
$74.61
Explanation:
The computation of the value of preferred stock is shown below:
Value of preferred stock = Annual dividend ÷ return of preferred stock per share
= 10.40% × 100 ÷ 13.94%
= $74.61
Simply we divide the annual dividend by the value of preferred stock per share so that the correct value of preferred stock can be computed
Answer:
D. Aggregate demand curve would shift to the right
Answer:
Answer: Yes, There is a linear correlation between the weights of the bears and their chest sizes because the absolute value of the test statistics 0.961 exceeds the critical value
Explanation:
Claim: There is a linear correlation between the weights of the bears and their chest sizes
Null hypothesis, H₀ : p=0 (there is no significant correlation)
Alternative hypothesis, H₁ : p ≠0 (there is no significant correlation)
Level of significance, α = 0.05
Decision rule: Reject H₀ if robserved ≥ rcritical
Sample correlation coefficient r = robserved = 0.961
Yes, There is a linear correlation between the weights of the bears and their chest sizes because the absolute value of the test statistics 0.961 exceeds the critical value
True, but could you elaborate on this ?
