The Internal rate of return (IRR) of an investment is found to be 13%.
<h3>What is Internal rate of return (IRR)?</h3>
The internal rate of return (IRR) is a financial analysis metric used to estimate the profitability of possible investments.
- In a discounted cash flow analysis, IRR is a discount rate that renders the net present value (NPV) among all cash flows equal to zero.
- IRR calculations employ the same method as NPV calculations.
- Keep in mind that the IRR is not the project's actual dollar value.
- The annual return is what brings the NPV to zero.
Now, according to the question;
Total investment = $18,500.
Returns = $5,250/year
Time = 5 years
Use the formula for calculation of IRR value.
$18,500 = $5,250 {[1 - 1/(1 + IRR)5] / IRR}
Simplyfying,
IRR = 12.92%
Therefore, the internal rate of returns are calculated as 13% (approximately).
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Answer:
The correct answer is option C.
Explanation:
The law of comparative advantage states that a country will produce and export the commodity it has a comparative advantage in producing.
In other words, if the country can produce good cheaply or at a lower opportunity cost.
The good that cannot be produced cheaply or has a higher opportunity cost will be imported from the country that produces it cheaply.
A national health<span> insurance </span>system<span>, or single-payer </span>system<span>, in which a single government entity acts as the administrator to collect all </span>health care<span> fees, and pay out all </span>health care<span> costs. Medical services are publicly financed but not publicly provided. Canada, Denmark, Taiwan, and Sweden </span>have<span> single-payer </span>systems<span>.</span>
Answer:
Option A The impact of a change in the local currency on inflow and outflow variables can sometimes be indirect and therefore different from what is expected.
Explanation:
The reason is that the changes in the currency exchange rate in which the company receives the payment and is also not a home currency, such risk exposure is known as economic exposure. So the only option that correct here is option A.
Option B is incorrect because depreciation is non cash item and it is not exposed to currency fluctuations.
Option C and D are also incorrect because domestic firms don't face any economic exposure.
