Complete Question:
Machine A costs $9,500 and has an annual operating cost of $5,500. Machine B costs $8,000 and has an annual operating cost of $5,800. Each machine has an economic life of 8 years. What is the annual rate of return the additional investment in machine A?
Answer:
IRR is 11.81%
Explanation:
<u><em>We have to find the annual rate of return on the additional investment in machine A.</em></u> The additional investment can also be termed as incremental investment which is $1,500 ($9,500 - $8,000). Furthermore, the additional cost savings of operating machine A is $300 ($5,500 - $5,800). And this cost savings will be during the life span of the machine A.
Now
We can compute IRR, by using Excel as under:
Answer:
None of the answers is correct:
- the CPI measures only a basket of goods and services, not all the goods and services
- the CPI measures around the whole country, not only in urban areas
- raw materials or wage rates have nothing to do with the CPI
Explanation:
The Consumer Price Index (CPI) measures the weighted average prices of a basket of goods and services (called the CPI basket). It is calculated by determining how much the nominal prices of the CPI basket changes from one year to another, or how the prices have changed using a base year and their current prices.
The financial institutions provide loans and advances to the customers.
The rate of return is very high in case of investment made in this type of institution.
It also gives a high rated consultancy to the customers for their beneficial investments.
It also serve as a depository for their customers.
Answer:
B: an important determinant of wages, and it affects the production of goods and services.
Explanation:
Employees with their knowlege, skills and experience is valuable for a company and its economy; they they represent the company's asset, its human capital , which also includes other characteristics related to people instead of physical capital and machinery, such as: loyalty, intelligence, health, etc. <em>The human capital has a </em><em>direct relation</em><em> with the </em><em>produtivity</em><em> and its consequent </em><em>profits.</em>