Answer: profitability
Explanation: The internal rate of return method differs from the net present value method in that it results in finding the profitability of the potential investment.
In capital budgeting which is the process by which companies determine whether a new investment or expansion opportunity is worthwhile and if undertaken, could either yield net profits or losses for the company, both the net present value (NPV) (present value of cash inflows minus the present value of cash outflows over a given period time) and the internal rate of return (IRR) methods are employed.
How does the IRR method determine profitability? - This it does by using a percentage value rather than a dollar amount and therefore is advantageous in representing the possible returns of investments by comparing it with other alternative investments.
You are thinking about a project that is anticipated to bring in $138,066.75 annually.
<h3>How do you calculate the cash flow from an annuity?</h3>
The periodic cost of capital When the cost of capital is constant across all maturities, an AFs is the sum of the DFs for each cash flow in the annuity.
<h3>A stream of cash flows is what?</h3>
A sequence of equal-amount cash flows that occur at predictable, periodic times. When determining the comparable future value of a present amount of liquidity, the effect of time on value or the rate at which time affects value is taken into account a series of regular financial flows that never ends an infinite annuity.
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Answer:
The correct answer is B
Explanation:
Financial assets are those assets which is defined as the liquid assets and that derive or gets its value from the ownership claim or the contractual right. Its example are bank deposits, cash, mutual funds, bonds and stocks.
These are contributed indirectly to the productive capacity of the country because these (financial assets) permit or allow the individuals or business to invest in governments or firms, which in return allow the government and business to increase the productive capacity.
Answer:
$373.10
Explanation:
The principle amount is $350... PV
Interest rates 6.5 % ...r
Duration one year...n
The formula for calculating compound interest
FV = PV x ( 1 + r ) n
Since 6.5 % is compounded twice year: r becomes 6.5/ 2 and n will n x2
FV = 350(1+0.065 )2
=$350 x 1.06605625
=$350 x 1.066
=$373.10
the cost of the good will be thereb at the same ti e u go to the reustruant and make the payment
