Answer:
The value of x is 566.36
Explanation:
The value of x should be such that the present value of both Investments is the same when discounted at a rate of 11%. To calculate the present value, we use the following formula,
Present Value = CF 1 / (1+r) + CF 2 / (1+r)^2 + ... + CFn / (1+r)^n
Where,
- CF represents Cash flow
- r represents the discount rate
So, we equate both the present value of Investment A and B to calculate the value of x.
Present Value of A = Present Value of B
450/(1.11) + 650/(1.11)^2 + 850/(1.11)^3 = 850/(1.11) + x/(1.11)^2 + 450/(1.11)^3
1554.472661 = 765.7657658 + x/(1.11)^2 + 329.0361216
1554.472661 - 765.7657658 - 329.0361216 = x/(1.11)^2
459.6707736 * (1.11)^2 = x
x = 566.3603602 rounded off to 566.36
Answer:
The answer is a rightward shift of the supply curve.
Explanation:
an increase in supply will result in a shift of the supply curve to the right
Answer:
E $75
Explanation:
Using CAMP we solve for the Cost of equity on each and determinate which project are worht to invest on it
A
risk free = 0.045
rate premium market = (market rate - risk free) = 0.055
beta(non diversifiable risk) = 0.93
Ke 0.09615 = 9.615%
A 9.615% - 2.00% = 7.615% As the return is 7.60% we should <em>reject</em>
B 9.615% - 1% = 8.615% return of 9.15% we should <u>Accept</u>
C return of 10.10% while Ke 9.615% <u>Accepted</u>
D 9.615% + 1% = 10.615% return of 10.40% <em>rejected</em>
E 9.615% + 2% = 11.615% against 10.80% yield <em>rejected</em>
F cost of 11.615% ith return of 10.90% <em>rejected</em>
G cost of 11.615% with return of 13.00% <u>Accepted</u>
We accept three projectthus, we require $75
<span>The function of media advertising is to support the economy, provide information about products, and underwrite media costs associated with: Promotion of consumption
By using media advertising, a company will be able to obtain larger reach to inform potential customers about the existence of their product, which will persuade the potential buyers to spend their saving to consume their products.</span>