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Nimfa-mama [501]
3 years ago
9

Suppose the cost to erect a tornado siren in a small town is $15,000. in addition, suppose the value of a human life is $10 mill

ion. by what percentage would the siren need to reduce the risk of a fatality for the benefits of the siren to exceed the costs of the siren?
Business
1 answer:
lianna [129]3 years ago
5 0

Evaluate b2c-1 for b = -4 and c = 2.

You might be interested in
The difference between scenario analysis and sensitivity analysis is that:__________
Sergeu [11.5K]

Answer:

C) scenario analysis considers the effect on NPV of changing multiple project parameters.

Explanation:

Scenario analysis is used to determine the effect on the end result if several parameters are changed . Sensitivity analysis on the other hand involves the effect on the end result due to change in one parameter. With regard to net present value, the scenario analysis on the project will based on effects of changing multiple parameters for example how NPV will change due to increase in price of the products sold, changes in inflation rate and changes in corporate taxes.

3 0
3 years ago
The following costs and useful life data are associated with two new machines being considered at Arun Tech Inc.
Sidana [21]

Answer:

Machine B has a higher NPV therefore should be produced

Explanation:

The machine with the higher Net Present Value (NPV) should be produced .

NPV of Machine A

PV of cash flow

PV of annual profit = A × (1- (1+r)^*(-n)/r

A- 92,000, n- 11, r- 12%

PV = 92,000 × (1- (1.12^(-11)/0.12 = 546268.32

PV of salvage value = 13,000× 1.12^(-11)= 3737.189

NPV =  546268.320 + 3737.189  -250,000 = $300,005.50

NPV of Machine B

A- 103,00, n- 19, r- 12%

PV = 103,000 × (1- (1.12^(-19)/0.12= 758675.0165

Pv of salvage value = 26000× 1.12^(-19)= 3018.776199

NPV =758675.0165  + 3018.77  -460,000 = $301,693.79

Machine B has a higher NPV , therefore should be produced.

6 0
3 years ago
Read 2 more answers
. Distinguish between the short run and the long run as they relate to macroeconomics. Why is the distinction important
STALIN [3.7K]

Answer:

1. In the short run, wages and other prices are stagnant making the economy to run below or above the normal level. In the long run, wages and prices are fully flexible, and this allows the economy to run at its natural level.

2. This distinction is important because it helps us to see how difficult it could be to sustain the real gross domestic product and employment rates thus making the economy to run at a normal level or achieve its full potentials.  

Explanation:

Stickiness or stagnancy of wages can be seen in the fact that it is most time difficult to fluctuate or change the wages of workers overtime. The prices of most goods are also sticky when they remain unchanged over a given period of time. These conditions exist in the short run, and make the economy to run above or below its full potentials. The real GDP and unemployment levels are negatively affected.

In the long run, flexibility of wages and prices are achieved and this makes the economy to run at its full potentials. The real GDP as well as the employment rate are at their optimum level then.

5 0
3 years ago
______, an investor is able to replicate a corporation's capital structure by borrowing funds and using those funds along with h
Anika [276]

With homemade leverage, an investor is able to replicate a corporation's capital structure by borrowing funds and using those funds along with her own money to buy the company's stock. This is further explained below.

<h3>What is homemade leverage?</h3>

Generally,  When an investment in a firm that does not use leverage is converted into the impact that leverage has on investment by using personal borrowing, this is an example of homemade leverage.

In conclusion, By utilizing borrowed money plus her own finances to acquire shares in a firm, an investor might "do her own leverage," or mimic the capital structure of a publicly traded company.

Read more about homemade leverage

brainly.com/question/15083730

#SPJ1

6 0
1 year ago
Yesterday, Berryman Investments was selling for $90 per share. Today, the company completed a 7-for-2 stock split. If the total
NeTakaya

Answer:

$26 per share

Explanation:

The computation of the today stock price is shown below:

= Selling price of per share ÷ (number of completed ÷ number of stock split)

= $90 ÷ (7 ÷ 2)

= $90 ÷ 3.5

= $26 per share

We first divide the number of completed with the number of stock split. The value come is divided to selling price per share so that the accurate price of the stock can come.

7 0
3 years ago
Read 2 more answers
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