B. notes from your last meeting.
Answer:
13.96%
Explanation:
Internal rate of return (IRR) is the interest rate at which net present value of all cash flows becomes zero. It measure the profitability of the investment.
IRR of Current Project
Year 0 1 2 3
Cash flows -$3,000 $1,200 $1,300 $1,400
Net Present Value at 10% = [ ( -30,000 x (1 + 10%)^-0 ) + ( 1,200 x (1 + 10%)^-1 ) + ( 1,200 x (1 + 10%)^-2 ) + ( 1,400 x (1 + 10%)^-3 ) ] = $197.39
Net Present Value at 12% = [ ( -30,000 x (1 + 12%)^-0 ) + ( 1,200 x (1 + 12%)^-1 ) + ( 1,200 x (1 + 12%)^-2 ) + ( 1,400 x (1 + 12%)^-3 ) ] = $93.1
IRR = Lower rate + [ Lower rate NPV / (Lower rate NPV - Higher rate NPV) ] (higher rate - lower rate)
IRR = 10% + [ 197.39 / ($197.39 - $93.1) ] (12% - 10%)
IRR = 13.8%
Due to rounding factor the nearest option and the correct option is 13.96%
Answer: Option C
Explanation: The situation when the total demand for goods and services is unable to support the full employment level, then the unemployment arising from such a situations is called cyclical unemployment.
It is a natural phenomenon in every economy as the market forces of demand and supply operate on a very high level and are impossible to control completely.
This type of unemployment always exist in an economy to some extent due to the trends or inflation or deflation.
Thus, from the above we can conclude that the correct option is C.
A.the first graph all the way to the left, hope this helped :P
Answer:
The payment will be approximately at the end of 5 Years of $27,764.28, so option a is the correct one
Explanation:
In order to calcualte The exchange rate at the end of five years is we have to use the following formula:
= 7.0305 * {(1+ interest rate in Norway)/(Interest rate in US)}^5
= 7.0305 * [(1.031)/(1.026)]^5
= Nkr 7.2035 / $
= $1/7.2035 / Nkr
= $0.1388 / Nkr
Henche, The payment to be recieved at the end of 5 years will be NKr 200,000, therefore the value of the payment in dollars is = $27,764.28
