Answer:
The NPV of the project is $765.91 and option A is the correct answer.
Explanation:
To calculate the initial outlay or cost of the project, we will use the payback period of the project. The payback period is the time taken by the project's cash flows to cover up the initial cost.
A payback period of 2.5 years means that the initial cost was,
Initial cost = 2000 + 3000 + 3000 * 0.5
Initial cost = $6500
To calculate the NPV of the project, we use the following formula,
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial cost
Where,
- CF1, CF2 , ... represents the cash flow in year 1, cash flow in year 2 and so on.
- r is the cost of capital
NPV = 2000 / (1+0.12) + 3000 / (1+0.12)^2 + 3000 / (1+0.12)^3 +
1500 / (1+0.12)^4 - 6500
NPV = $765.9137794 rounded off to $765.91
Answer:
A. Preparing for and introducing job analysis
Explanation:
The job analysis refers to a process in which the information related job responsibilities is gathered. The first step of this process involves planning the analysis and establishing the goal of it. Then, the next step is to prepare the analysis which involves defining the jobs that will be studied and the employees that will be included. Also, the job descriptions that are available are reviewed. According to this, the answer is that Max's next step should be preparing for and introducing job analysis.
Answer:
$700,000
Explanation:
Given that
Effective gross income = $112,000
Net operating income = $84,000
Capitalization rate = 12%
So by considering the above information, the asking price for the property is
= Net operating income ÷ Capitalization rate
= $84,000 ÷ 12%
= $700,000
By dividing the net operating income by capitalization rate we can get the asking price for the property
Answer:
Switching cost
Explanation:
Switching cost may be defined as the amount which is related to the consumer for the purpose of changing the supplier to the another one. So, the greater the cost of switching, the more will be hard or costly the switch will be.
Therefore according to the above explanation, the correct answer is Switching cost.
<span>When you invest you have a greater chance of losing your money than when you save.</span>
