Answer:
d. Choose Option B because it has a higher NPV
Explanation:
The computation is shown below:
For Option A:
Investment = $10 million
Present Value of cash flows = Cash flow ÷ Discounting rate
= $2 ÷ 10%
= $20 million
Now
NPV = $20 - $10
= $10 million
We know that
IRR is the rate at which the NPV will be zero
So, 2 ÷ r - 10 = 0
r = 20%
For Option B:
Investment = $50 million
Present Value of cash flows = $6.5 ÷ 10% = $65 million
NPV = $65 - $50 = $15 million
we know that
IRR is the rate at which the NPV will be zero
So, 6.5÷ r -50 = 0
r = 13%
Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.
However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage
BRICS is an acronym for the economies of Brazil, Russia, India, China, and South Africa combined, which in 2001 were the fastest growing major economies in the world.
Answer: identify your target audience
Explanation:
Since Frank has identified his strategies and goals, then the next step in the campaign will be to identify the target audience.
The target audience refers to the consumers that are likely to attract new business to Slice of Life Pizza. This is vital for Frank to be able to reach out to more customers and make profit.
Answer:
100%
Explanation:
Let the normal retail price of the sweater be 'SP' and the cost price be 'CP'
Therefore,
The selling price = SP - 40% of SP = SP - 0.4SP = 0.6SP
Now,
the profit = 20% of CP = 0.2CP
also,
Profit = Selling Price - Actual price
or
0.2CP = 0.6SP - CP
or
1.2CP = 0.6SP
Or
CP = 0.5SP
or
SP = 2CP
thus,
Increase percentage in sweater marked up from wholesale at its normal retail price
=
or
=
= 100%
Answer:
mislaid property
Explanation:
Based on the information provided within the question it can be said that the guitar represents mislaid property. This term refers to something that was left in a specific place with the intention of retrieving it later but then forgotten. Which is exactly what happened with the guitar, as Richard left it in the hotel for safe keeping but forgot to take it when he left the hotel for good.