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3 years ago

Gore Global is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below.

Business

1 answer:

d1i1m1o1n [39]3 years ago

7 0

Answer:

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

Flying Car

Cash flow in year 0 = -$200,000

Cash flow in year 1 = 50,000

Cash flow in year 2 = 50,000

Cash flow in year 3 =80,000

Cash flow in year 4 =100,000

IRR = 13%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

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True or False: If people have rational expectations, the sacrifice ratio could be much smaller than suggested by the short-run P

Simora [160]

People often have different expectations. If people have rational expectations, the sacrifice ratio could be much smaller than suggested by the short-run Phillips curve is a false a statement.

The sacrifice ratio is said to be smaller than suggested by former estimates. The short-run phillips curve will ten to shift downward and the economy would reach low inflation very fast.

Rational expectations is known to be an economic theory. It simply states that when making decisions, individual agents will capitalize their decisions on the information that is best and available and they also learn from past trends.

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2 years ago

How much would you need to deposit in an account now, such that in 5 years your account will have increased to $8,000, assuming

VladimirAG [237]

Answer:

$6268.21

Explanation:

Future value = $8000

Interest(r) = 5%

Period (n)= 5 years

How much need to deposit?

Find the Present value:

PV = FV / (1+r)n

= 8000 / (1.05)5

= 8000 / 1.27628156

Present Value / Amount need to deposi today = $6268.21 approx

4 0

1 year ago

Which one of the following is a working capital decision?A. How should the firm raise additional capital to fund its expansion?B

svetoff [14.1K]

Answer:

The correct answer is letter "E": How much cash should the firm keep in reserve?

Explanation:

Working capital decisions imply working in capital cycles. They take into consideration interest rates, debtors management, and the company's financing in the short run. The working capital decisions also ensure that the organizations have enough cash to pay its bills and determine how much of the cash flow should be stored in the firm's reserve.

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3 years ago

Observing children's needs and interests should affect the way you plan activities.

Leya [2.2K]

Answer is A, due to food allergies, but preferences CAN come into play. Allergies come first, though, along with medical issues.

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3 years ago

Household production, such as baking bread at home, is not included in GDP because it

Mariulka [41]

Answer:

The correct answer is option D.

Explanation:

GDP can be defined as a measure to calculate the economic growth of a nation. It includes the production of final goods and services in the geographical boundaries of a nation.

It does not include home production of goods and services, this is because such goods and services do not involve a market transaction. For instance, if a person is baking bread at home he/she is not being paid for it by anyone.

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3 years ago