Answer:
The answer is letter D.
Explanation:
Charities. It’s important to note that sometimes private solutions to externalities do not work. For example, this occurs when one party repeatedly holds out for a better deal. This describes the problem of (transaction cost, breakdown in bargaining, property held in common)
Answer:
The present value of the future cash inflows from this investment is $19,740
Explanation:
Profitability Index is a useful tool for ranking project because we can know the amount/ value created by per unit of investment.
Profitability Index = Present value of future cash flow/ Initial Investment
↔ 0.329 = Present value of future cash inflow/ $60,000
↔ Present value of future cash inflow = 0.329 * $60,000 =$19,740
Answer:
e. 14.20%
Explanation:
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
Hence
A=$450(1.1)^2+$450(1.1)^1+$450
=$450[(1.1)^2+(1.1)+1]
=$1489.50
Hence
MIRR=[Future value of inflows/Present value of outflows]^(1/time period)-1
=[1489.5/1000]^(1/3)-1
=14.20%(Approx)
Answer:
Explanation:
Short term goals are goals that are set for a short period of time. For instance, a goal to get your homework done. Long term goals are goals that are set for a long period of time. For instance, staying healthy and happy. Hope this helped ya! :)
Answer:
Explanation:
The interest expense would be
= Borrowing amount × annual rate of interest
= $80,000 × 8%
= $6,400
And, the principal would be
= Annual payment - interest expense
= $20,037 - $6,400
= $13,637
The principal balance on January 1, 2019 would be
= Borrowed amount - principal repaid amount
= $80,000 - $13,637
= $66,363
The interest expense would be
= Borrowing amount of 2019 × annual rate of interest
= $66,363 × 8%
= $5,309
And, the principal would be
= Annual payment - interest expense
= $20,037 - $5,309
= $14,728