Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8 percent and the maximum allowable
discounted payback period is three years. (Do not round intermediate calculations. Round your final answer to 2 decimal places)
Time: 0 1 2 3 4 5
Cash Flow: -$1000 $480 $480 $520 $300 $100
Discounted payback period = ? years
Time: 0 1 2 3 4 5
Cash Flow: -$1000 $480 $480 $520 $300 $100
Discounted payback period = ? years
1 answer:
Answer:
2.35 years
Explanation:
Discounted pay back period calculates the amount of years it takes to recover the amount invested from the cumulative cash flows.
Explanations on how the discounted cash flow period was calculated can be found in the attached image.
Check for the formula for discounted cash flows in the second attached image
I hope my answer helps you
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Answer:
no surplus or shortage
Explanation:
Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.
Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied
If demamd increases by 100, new equilibrium is 40
Thus, ceiling price equal equilibrium
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
Effects of a binding price ceiling
It leads to shortages
it leads to the development of black markets
it prevents producers from raising price beyond a certain price
It lowers the price consumers pay for a product. This increases consumer surplus
Error in true mean = +/-Z*
Where; Z=2.58 at 99% confidence interval, s= sd = 0.25 hours, n=sample population = 60 refrigerators
Therefore;
Margin of error = +/-2.58*
= 0.0832 hours
Where; Z=2.58 at 99% confidence interval, s= sd = 0.25 hours, n=sample population = 60 refrigerators
Therefore;
Margin of error = +/-2.58*