Answer:
If CF0 is positive and all the other CFs are negative, then you can still solve for I
TRUE. This will be the formula for ordinary annuity.
This is the case of a loan on which the company receives a positive cash flow at the beginning and then makes subsequent cash payments, thus negatives cash flows.
Explanation:
If you have a series of cash flows, and CF0 is negative but each of the following CFs is positive, you can solve for I, but only if the sum of the undiscounted cash flows exceeds the cost
FALSE If the sum is below the cost then it will give a negative rate
To solve for I, one must identify the value of I that causes the PV of the positive CFs to equal the absolute value of the FV of the negative CFs. FALSE you can't compare a present value with a future as they are on different dates.
It is impossible to find the value of I without a computer or financial calculator.
FALSE There are method of approximation the difference is that the computer does this faster than humans.
If you solve for I and get a negative number, then you must have made a mistake
FALSE if the project return are lower than cost the rate will be negative.
Answer:
$35,464
Explanation:
Calculation for the depreciation base of Marigold's new machine
Purchased machine $29,120
Add:Title fees $200
County property tax $130
Shipping charges for delivery $520
Local contractor $5,494
Depreciation base $35,464
Therefore the Depreciation base of Marigold's new machine
will be $35,464
Answer:
The correct answer is B) increase; raise
Explanation:
The increase in the amount of investment will cause the increase in real production. Moreover, an increase in the investment decisions of entrepreneurs will have a multiplier effect on the economy since it will allow an increase in the income of the factors of the investment goods industry; part of this increase will be used for consumption which will cause cascading increases in the income of other factors.
Answer: 5.725%; 5.55%
Explanation:
The arithmetic average or mean is the sum of a collection of numbers that is divided by the count of the numbers in the collection.
Arithmetic average = Total return ÷ total time period
=(5.1+12.2-3.8+9.4) ÷ 4
= 22.9 ÷ 4
= 5.725%
Geometric average will be:
=[(1+rate1)(1+rate2)(1+rate3)(1+rate4)]^(1/4) - 1
=[(1+0.051)(1+0.122)(1-0.038)(1+0.094)]^(1/4)-1
=5.55%
Answer:The answer is production
Explanation:
Production can be defined as the creation of utilities needed to satisfy human wants. It is a transformation of raw materials into finished goods and the distribution and provision of goods and services to satisfy human wants. Production is said to be complete when the goods are finally in the hands of the users or consumers Who will consume the goods.
Goods can be divided into two namely:
Consumer good : consumer goods are the goods that can satisfy the consumer immediate wants. These goods do not need further process of production for their use by the consumer. Examples of consumer goods are milk, bread, beer.
Industrial good : industrial goods are the goods meant for the production of further goods.Examples are machines, cars, truck used in carrying out productive activities.
Raw materials are the examples of consumer goods that can be used as industrial goods to start a business. These raw materials are put together into finished goods through human effort with or without the help of machines. The raw materials are needed to produce goods without raw materials production of goods is impossible to achieve.
