Answer:
This question does not include what you are required to do. I looked it up on the web and it is asking for the Internal rate of return (IRR)
Explanation:
Internal rate of return used in project evaluations is the rate at which the NPV of a project equals to zero.
You can solve for IRR using a financial calculator and the cashflow "CF " function. Key in the following inputs;
Initial investment; CF0 = -54,000
Yr1 cashflow inflow ; C01 = 27,000
Yr2 cashflow inflow ; C02 = 25,000
Yr3 cashflow inflow ; C03 = 20,000
Then key in IRR then CPT = 16.792%
Therefore, the Internal rate of return(IRR) for this equipment is 16.79%
Opportunity cost is something you gave up to do the other thing you want to do. This is basically the loss of potential gain you can have on a certain alternative because of choosing the other alternative. In this problem, the opportunity cost of writing the term paper is $140 dollars. This can be break-down as follows:
a. $60 opportunity cost<span> she has given up for not</span> working<span> on her job</span>
<span>b. $80 opportunity cost she has given up for not going out with a friend</span>
Answer:
$220.028
Explanation:
According to dividend valuation model, the price of share is the present value of all the dividends that the share will give in future.
Based on the above statement the price of the share of the OMG Corporation shall be determined as follows:
Present value of year 1 dividend=1.856(1+7.10%)^-1 $1.733
(1.60*1.16)
Present value of year 2 dividend=2.153(1+7.10%)^-2 $1.88
(1.856*1.16)
Present value of year 3 dividend=2.497(1+7.10%)^-3 $2.033
(2.153*1.16)
Present value of year 4 dividend=2.897(1+7.10%)^-4 $2.202
(2.497*1.16)
Present value of all dividends after year 4= $212.18
[2.897(1+6%)/7.10%-6%]*(1+7.10%)^-4
Price of share $220.028
Answer:
its b i am pretty sure its b
Explanation:
Given that
Amount of equity loan = $24,000
Appraisal value of home = $110,000
Using percentage = 70%
Owed amount = $60,000
By considering the above information,
As we know that for the borrowing purpose, only 70% is eligible i.e
= $110,000 × 70%
= $77,000
So, the highest credit limit would be
= $77,000 - $60,000
= $17,000
So, there is no enough residual value left for $24,000 equity loan
2. By seeing the credit rating, income of a person, the lender could is willing to offer them additional amount i.e $7,000 that is come from subtracting the $17,000 from the $24,000 equity loan amount
