1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Agata [3.3K]
3 years ago
7

With respect to engineering economics and the internal rate of return (IRR), Descartes’ rule of signs indicates there will be at

most as many _____ rates of return as there are sign changes in the cash flow profile.
Business
1 answer:
Alika [10]3 years ago
4 0

Answer:

''there will be at most as many POSITIVE rates...''

Explanation:

The measure of investments' rate of return which excludes external factors such as inflation is known as Internal Rate of Return(IRR)

It is used in;

(1). Savings and loans.

(2). Liabilities

(3). Fixed incomes

(4). Private equity and capital management.

(5). Maximizing total present value and so on.

It can be calculate using the formula below:

NPV= C(n)/(1+r)^n = 0

That is internal rate of return can be use in solving NPV = 0.

Therefore, 'With respect to engineering economics and the internal rate of return (IRR), Descartes’ rule of signs indicates there will be at most as many POSITIVE rates of return as there are sign changes in the cash flow profile.''

You might be interested in
Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respe
Lena [83]

Answer:

$856,376.30

Explanation:

What is the terminal, or horizon, value of operations?

2 years, FCF 1 = 80,000, FCFC 2 = 100,000, Growth rate= 5%, WACC = 16%

==> 100,000*(1+0.05)/(0.16-0.05)

==> 100,000*(1.05/0.11)

==> 100,000*(9.545454(

==> 954,545

Calculating the value of Kendra's operations.

Years  Cash-flows   PVF at 16%    Present value

1           800,000       0.86206         68964.80

2          105,000        0.74316           78031.80

2          954,545        0.74316           <u>709379.70</u>

            Total value                           <u>856,376.30</u>

8 0
3 years ago
Hello, please help me with this paper, I understand it's long and requires a lot of work, but all the help is appreciated! Thank
Tomtit [17]

Answer:

Use prezi

Explanation:

I got a hundred rn

7 0
2 years ago
Lisa Smith has her age listed on her driver's license as being three years younger than it actually is. This is also how old she
Lubov Fominskaja [6]

Answer:

Misstatement of age

Explanation:

If the insurance company knows that a person has intentionally lied about his/her age, they will adjust the insurance amount and premium to match the correct age of the insured. E.g. in this case, Lisa will probably be required to pay a higher premium on her policy, and depending on her age, the insurance amount might be lower.

4 0
3 years ago
A primary reason cited by wysocki why doubling the number of people to a task does not reduce the overall duration of the projec
Ahat [919]
Because the all or some could me working different way then others<span />
5 0
3 years ago
It is always desirable to have a higher compounding frequency, regardless of the initial investment or the time horizon. True Fa
Katena32 [7]

Answer:

The answer is given below

Explanation:

Compounding frequency is the number of times the interest is paid in a year. A higher compounding frequency for a investment with the same initial investment and time horizon would produce more interest and profit as compared to that with a lower compounding frequency. But for a smaller initial investment or less time horizon of higher compounding frequency as compared to larger initial investment or more time horizon of lower compounding frequency, that of the lower compounding frequency is more desirable because it would produce more interest.

5 0
3 years ago
Other questions:
  • Cork Oak Corporation purchased a heavy-duty truck (not considered a passenger automobile for purposes of the listed property and
    10·1 answer
  • In reviewing his company's operations, a risk manager noticed that all of the company's finished goods were stored in a single w
    11·1 answer
  • Before you started applying for college, a job recruiter offered you a full-time cashier position at a department store, earning
    7·1 answer
  • The callable feature of a bond protects the issuer when market interest rates are falling.
    9·1 answer
  • Adams operates his $57500 firm using his own equity. Bob operates his firm with $28750 of his own money plus $28750 of debt at a
    9·1 answer
  • Workers know they will still have a job when they finish work on a project. c. One boss - the project manager d. Departmental ba
    11·1 answer
  • __________ states that adding more people to a late project makes the project later.
    8·1 answer
  • The ____ rate is the interest rate banks charge each other for borrowing or storing money?
    15·2 answers
  • The numbers of copies of a college textbook sold quarterly over the past four years are: Since the time series has trend and sea
    13·1 answer
  • If a company is pursuing a strategy to differentiate its branded footwear from the offerings of rival companies, its managers sh
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!