Answer:
If the workers had been paying other people to perform the household activities prior to unemployment, then total production will fall.
Explanation:
Answer:
a. -$82,250
Explanation:
Calculation for what is the projects initial cash
flow for net working capital
Initial cash flow=-$216,000 + $181,000 - ($525,000 *0.09)
Initial cash flow=-$216,000 + $181,000 - $47,250
Initial cash flow = - $82,250
Therefore the projects initial cash
flow for net working capital will be - $82,250
<u>Solution and Explanation:</u>
<u>
Answer:1</u> The total annual cash inflows associated with the new machine for capital budgeting purposes is:

=$10000
<u>Answer:2 </u>The internal rate of return promised by the new machine to the nearest whole percent is:
Particulars Year Amount ($)
Cash outflow 0 -40000
Cash inflow 1 10000
2 10000
3 10000
4 10000
5 10000
6 10000
IRR 13%
=13% using IRR function in excel.
<u>Answer:3</u> IRR=17%
with salvage value
Particulars Year Amount ($)
Cash outflow 0 -40000
Cash inflow 1 10000
2 10000
3 10000
4 10000
5 10000
6 22000
IRR 17%
using IRR function in excel.