Answer:
A
Decision: Project A should be selected.
B
NPV =$40,909.09
Explanation
A
<em>Since the two projects would achieve the same objectives, the project with the lowest initial cost should be selected.</em>
Kindly note that the $2 million already spend on project A is not a relevant cash flow because it is sunk cost. Hence, the initial cos outlay of project A will be $2 million which will be spent should the project be undertaken.
Project B on the other hand would cost $1.5 million in initial cost which is $500,000 cheaper than project A.
Decision: Project A should be selected.
B
<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite. </em>
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
Initial cost = 50,000
The NPV of the savings
NPV = 100,000× 1.1^(-1) - 50,000= 40,909.09
NPV =$40,909.09
Answer: Groundwater
Explanation:
Groundwater are water that gather underneath the soil surface, stored around rocks and slowly flow from a point to another as underground streams. Groundwater is vital to human survival, as they can be consumed directly and are also a source of water for farming.
Answer:
Hello there!
I'd say he used money in all the transactions.
50 cents is money
50 dollar bill is money
Visa card, there is money
Explanation:
Sorry if I'm wrong
Hope this helps!
Answer:
(d) $200 million.
Explanation:
For computing the increase in nominal GDP first we have to determine the net tax which is equal to
= 0.90 ×$200 million
= $180 million
So, the net increase in government spending is
= $200 million - $180 million
= $20 million
And, we know that
Multiplier = 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.9)
= 1 ÷ 0.1
= 10
So, the increase in nominal GDP is
= $20 million × 10
= $200 million
