Answer:
The activities of the Federal Reserve Board have the most direct influence on: bank interest rates, monetary policy (interest rates, credit, etc.)
INTERNAL AUDITORS are responsible for verifying accuracy ..........................
The activities performed by the internal auditors help a company to achieve its goals by employing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control and governance.<span />
Answer:
The correct answer is 20 units.
Explanation:
According to the scenario, the given data are as follows:
Total cost = $10,000
Total fixed cost = $2,000
Average variable cost = $400
So, Total variable cost = Total cost - Total fixed cost
= $10,000 - $2,000 = $8,000
So, we can calculate the total number of widgets producing by using following formula:
Units producing = Total variable cost ÷ average variable cost
= $8,000 ÷ $400
= 20 units
Answer:
Initial Investment, P = $100, 000
Recurring Cost, A=$6200
(a) Calculate the internal rate of return for infinite life,
A= P(i)
6200=100000(i)
i = 6200/100000
i =6.2%
(b) Calculate the internal rate of return for 100 years,
P = A(P/A, i, 100)
100000 = 6200 (P/A, i, 100)
(P/A, i, 100) = 16.129
For i = 6%
(P/A,6%,100) = 16.618
For i = 7%
(P/A ,7%,100) = 14.269
i = [(6 - 7) / (16.618 - 14.269)] (16.129 - 16.618) +6
i = 6.2%
Thus, IRR = 6.2%
(c) Calculate the internal rate of return for 50 years,
P = A(P/A ,i , 50)
100000 = 6200 (P/A, i, 50)
(P/A, i, 50) = 16.129
For i = 6%
(P/A, 6%, 100) = 15.762
For i = 5%
(P/A , 5%, 100) = 18.256
i = [(5 - 6) / (18.256 - 15.762)] (16.129-15.762) + 6
i = 5.853%
Thus, IRR = 5.853%
(d)
In all cases internal rate of return is greater than 4%, which is minimum interest rate that one can earn. So they should consider to install the pipeline.
