Answer:
2%
Explanation:
The average inflation rate for most countries is 2%. It is considered to be a healthy inflation rate, as inflation (a commonly referred negative issue) is normal in certain limits. It is important for inflation to remain healthy, as a higher inflation rate may imply a future inflation crisis coming.
This rate takes in account the <em>consumer price inde</em>x, which represents the average value of a consumer basket of goods and services.
Answer:
A) if the present value of the expected income stream associated with the investment is greater than the full cost of the investment project.
Explanation:
It is when the present value of the expected income stream associated with the investment is greater than the full cost of the investment project that the project is profitable. Most investments are undertaken with the aim of making profits.
The net present value can be used to determine if the present value of the expected income stream associated with the investment would be greater than the full cost of the investment project.
What are the opportunity costs of building this bridge?
All the options are applicable
What are the benefits that citizens will likely receive if the bridge is built?
Option B, Reduced travel time for commuters and shoppers.
Explanation:
When economic experts speak of a source of money's "opportunity cost," they mean the significance of its next highly valued appropriate use.
For example, if you spend millions of dollars on a movie, you can't even spend the time at home by reading a book and don't spend the cash.
Due to the cost of resources, you will make more efficient choices.
In comparison to its potential gains, you will determine the mortality risk of each alternative.
Answer:
$897
Explanation:
Calculation to determine the value today
Using Financial calculator to determine the Present value (PV)
N = (12- 2) = 10 years
I = 14%
PMT =12%*1,000=120
FV = $1000
PV=?
Hence;
PV = $896.68
PV=$897 (Approximately)
Therefore the value today is $897
Answer:
$20 million is expected to have cash balance at the end of the year.
$39 million is the maximum possible investment funds that company is expected to invest.
Yes it is true net cash flow is likely to decrease in the next quarter if the company allows customer to pay in 90 days instead of 60 days.