Answer:
PV of cash outflows = Annuity*(1-1/(1+rate)^number of terms)/rate
= 5000000000*(1-1/(1+9%)^6)/9%
= 22429592951.15
PV of inflows at end of 6 years= Annuity*(1-1/(1+rate)^number of terms)/rate
= 200000000*(1-1/(1+9%)^100)/9%
= 2221820304.00
PV of inflows now = 2221820304/1.09^6 = $1,324,798,853.47
NPV = -22429592951.15+1324798853.47
= -21104794098
We see that the Net Present value added by this method is negative. Hence the project is not beneficial.
Answer:
1. Positive Externality ; 2. Negative Externality ; 3. Positive Externality.
Explanation:
Externalities are benefits or harms to other parties , without payment received or made for them respectively.
Positive Externalities : Externalities positively effecting others. Eg-Education
Negative Externalities : Externalities positively effecting others . Eg-Pollution.
1. Bridal Shop's signage facelift creates benefit for other strip mall businesses also (better business visibility), without former receiving money & latter paying money.
2. Local church celebration creates benefit for all attendants (recreational benefit) ,without former receiving money & latter paying money.
3. Local School bus ramp construction creates harm for commuters of that area (traffic inconvenience) , without former paying money & latter receiving money
B. 0.5% - 2% based on average tax return rates in the US
to ensure that job opportunities reach all corners of the country and check the living standards of the citizens
I would say its B quality because of the safety stock you would want good quality.
