Answer:
2014 CPI= 101.5
2013 CPI= 100.8333333
2014 Inflation Rate= 0.66%
Explanation:
Consumer Price Index (CPI):
The index is calculated by taking the price of the basket in one year and dividing it by the price of the basket in another year. This ratio is then multiplied by 100.
Basket Price:
is the sum of the product of the quantitys and prices of the goods thata compose the basket for any given year.
Inflation Rate:
CPI (x+1) - CPI (x)
_____________
CPI (x)
Answer:
The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is $35,640,000.
Explanation:
Cash flow = Opportunity costs + cost + upgrdation
= $11.7 million + $22.9 million + $1,040,000
= $35,640,000
Therefore, The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is $35,640,000.
Answer:
c. more than $78.02 billion in exports
Explanation:
The nation of Brazil had imports of $78.02 billion in 2018 and had a positive trade balance. This means that Brazil has exports of greater than $78.02 billion. That if a country's exports go beyond its imports, it is claimed that the country has a positive balance of trade. It indicates that Brazil has exports of greater than $78.02 billion.
Hence, the correct option is c.
Answer:
Failing to analyze and take into account the competitor technological environment.
Explanation:
When initiating a new joint venture, a company must analyze many environments, such as cultural, organizational, financial, technological, processual, and others. In this case, it was necessary to analyze the current technological competitor environment to check the compatibility of operating systems and the cost and viability of adjusting accordingly. Nothing was done, hence the joint venture’s failure.
Answer:
IRR= 20%
Explanation:
The Internal Rate of Return (IRR) tries to find the profitability of the money that remains invested during the life of a proyect. It is also known as the discount rate that makes the Net Present Value (NPV) equal to cero. When the NPV is equal to cero, then the proyect does not create or destroy value. So, if we calculate the NPV with the IRR we will find that it is equal to cero. In this case, if the cost of capital were 20% the proyect will not create or destroy value, but the problem is giving us a cost of capital that is less than 20%, then the proyect creates value. If we calculate the NPV with the rate of 16% it will be grater than zero.
The figure attached shows the IRR formula. But i calculated using Excel: first i put the cash flows of each year ( the first one is negative because it is an investment ). Then i used the formula: "=IRR(C4:C8)"