Answer:
8.87%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-300,000
Cash flow each year from year 1 to 9 = $52,000 - $7,500 = $44500
Cash flow in year 10 = $44500 + $30,000 = $74500
IRR = 8.87%
To determine the value of IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Answer:
tax
Explanation:
Tax is really the strongest alternative for achieving maximum social efficiency. That is because it is defined previously itself that even if the company opted for a contract, this has high operating costs and this transaction cost can be treated as a dead weight loss of that contract.
The loss of dead weight is a social loss and prevents the social system from achieving socially optimal results.Another factor that should be noticed about the contract process is, there might be certain compliance problems with private parties to execute such a deal.
<span>To find the potential increase, the equation would be the amount of excess reserves (or deposits multiplied by the reserve ratio) multiplied by (100 divided by the required ratio). In this case, that would be (35 - ($200M * 0.10)) * (100/10), or (35M - 20M) * (10). This would leave 15M * 10, or $150 million in potential increase in deposits for the entire banking system.</span>