Answer:
It will take 3 years and 66 days to pay for the initial investment.
Explanation:
Giving the following information:
Cash flows= $615 for 8 years
Initial investment= $1,750
<u>The payback period is the time required to cover for the initial investment.</u>
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Year 1= 615 - 1,750= -1,135
Year 2= 615 - 1,135= -520
Year 3= 615 - 520= 95
Exactly:
(95/520)= 0.18*365= 66
It will take 3 years and 66 days to pay for the initial investment.
Answer:
Investment in fund b = $15,000
Explanation:
Let us assume funds invested in fund b = x while the sum total of funds invested in fund a & b = Y .ie Y = $6000 + x
Fund A returned $6000 * 3/100 = $180
Fund B returned = x & 10/100 = x/10
8%y(total returns) = funds a returns + fund b returns
8%y = $180 + (x/10)
let is replace y with 6000 + x
(6000 +x) * 8% = 180 + (x/10)
480+ 8x/100 = 180 + (x/10)
480 - 180 = (x/10) - (8x/100)
300 = (10x - 8x )/100
300 = 2x/100
300*100 = 2x
30,000 = 2x
x = 15, 000
Answer:
b. $5,360
Explanation:
Using a financial calculator with CF function, find the Net present value (NPV) of this projects cashflows;
Initial investment; CF0 = -20,000
Yr 1 cash inflow; C01 = 8,000
Yr 2 cash inflow; C02 = 8,000
Yr 3 cash inflow; C03 = 8,000
Yr 4 cash inflow; C04 = 8,000
and annual interest rate; I/Y = 10%
then compute net present value; CPT NPV = 5,358.924
Therefore, the NPV will be closest to $5,360
Answer:
B. Appreciate / Depreciate / Decrease
Explanation:
If the businessmen want to purchase some American Properties them will need to exchange the Koruna by the Dollar, it means Sell Koruna to buy dollar,which is, increase the Koruna supply and increase the demand by dollars.
It exchange will appreciate the dollar value because of an increase in the Dollar demand as the supply keeps at the same level.
While the Czech Koruna will see its price decrease because of the increase in the supply of Koruna while the demand of Koruna keeps at the same level,
In the meantime, the American Export see their market negatively affected by the increase in the dollar price, as the dollar increase its value and will be more difficult to the Americens sell their products to the rest of the world, because others countries need more money for each dollar.
Answer:
The correct answer is option A.
Explanation:
A market outcome will be considered economically efficient if the marginal benefit earned from the last unit is equal to the marginal cost incurred in the production of the last unit while the economic surplus or the sum of consumer surplus and producer surplus is at maximum.
If the marginal cost and benefit are not equal then the outcome is said to inefficient. It means that either the resources are not being allocated efficiently or the production is not efficient.
