Answer:
C) 2.57%
Explanation:
Pet World's net cash flows:
<u>Year </u> <u>Cash flow</u>
0 -$9,500
1 $2,000
2 $2,025
3 $2,050
4 $2,075
5 $2,100
In order to find the rate of return we can use an excel spreadsheet and the IRR function =IRR (values,[guess]) =IRR (-9500,2000,2025,2050,2075,2100)
=IRR = 2.57%
Answer:
$175,808
Explanation:
P=R (1-(1+i)^-n)/i
Where P=780,000*90%=$702,000
R=?
i=8%
N=5 years
By putting above values in formula, we get
P=R(1-(1+.08)^-5)/.08
702,000=R*3.993
R=702,000/3.993
R=$175,808
Answer:
Producers
Explanation:
Monopolistic competition is a form of market competition where different producers produce goods that are largely different from each other and can not even been used as a perfect substitute for one another.
This gives each producer the opportunity to decide its prices and output . Prices are always set higher than the marginal costs and the consumer surplus are less compared to a perfectly competitive market , making monopoly competition an imperfect market.
Answer:
d. One defect of the IRR method versus the NPV is that the IRR does not take proper account of differences in the sizes of projects.
CORRECT As the project yields over time can differ. This generates that projects with a lower IRR can achieve a higher NPV at lower rates.
There is a crossover point after which a projects NPV are equal and from there the one with higher IRR obtains better NPV
Explanation:
a. One defect of the IRR method versus the NPV is that the IRR does not take account of the time value of money.
FALSE both method consider time value of money
b. One defect of the IRR method versus the NPV is that the IRR does not take account of the cost of capital
FALSE The IRR can be compared against the cost of capital to indicate wether or not a project should be preferable
.c. One defect of the IRR method versus the NPV is that the IRR values a dollar received today the same as a dollar that will not be received until sometime in the future.
FALSE IRR considers the time value of money
e. One defect of the IRR method versus the NPV is that the IRR does not take account of cash flows over a project's full life.
FALSE it considers all the cash flows over the project's full life.