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zysi [14]
3 years ago
14

You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 9 percent inter

est. Approximately how long must you wait for your investment to double in value?
Business
1 answer:
Virty [35]3 years ago
5 0

Answer:

The answer is 8 years

Explanation:

FV= PV(1+r)^n

Where

PV= let's assume PV is $100

FV = Since FV will be doubled, the we have $200($100 x 2)

n= ?

r= 9percent

Let us use the rule of 72 which states that an investment will double when:

Annual Investment Rate x Number of Years = 72.

Number of years = 72/9

= 8 years

The investment is doubled in 8 years at the rate of 9percent

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Some managers belive that they have "seat of the pants" intuition and do not need project management tools. does that make sense
leonid [27]
Yes because u got to have tools to do a project 

8 0
3 years ago
Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IR
PolarNik [594]

Answer:

a. 9.43%

Explanation:

IRR is the rate of return that makes initial investment equal to present value of cash inflows

Initial investment = Annuity*[1 - 1 /(1 + r)^n] /r

1250 = 325 * [1 - 1 / (1 + r)^5] /r

Using trial and error method, i.e., after trying various values for R, lets try R as 9.43%

1250 = 325 * [1 - 1 / (1 + 0.0943)5] /0.0943

1250 = 325 * 3.846639

1250 = 1,250

Therefore, The project IRR is 9.43%

3 0
3 years ago
Hancock Inc. retains most of its earnings. The company currently has earnings per share of $11. Hancock expects its earnings to
monitta

Answer:

D1 = $3.50

D2 = $3.50

D3 = $3.50

Ke = 10% = 0.1

Po = <u>D1</u> +     <u>D2</u> +      <u>D3 </u>

      (1+ke)   (1+ke)2   (1+ke)3

Po = <u>$3.50</u> +   <u>$3.50</u>  + <u>$3.50 </u>

        (1+0.1)      (1+0.1)2  (1+0.1)3

Po = $3.18    +  $2.89  + $2.63

Po = $8.70

None of the above

Explanation:

In this scenario, we need to discount the dividend in each year by the required at rate of return of 10%. The aggregate of the price obtained as a result of discounting in year 1 to year 3 gives the current market price.

7 0
3 years ago
An organization that creates many products with similar characteristics, using assembly lines would most likely be categorized a
Kisachek [45]

Answer:

Continuous manufacturing organisation

Explanation:

Continuous production uses a production plant to manufacture a product continuously. It is also called continuous flow.

This is so called because the materials inputted in the production process is in continuous motion as it moves through the production line.

The products tend to be similar or standardised with no distinguishing features. For example cement, fertiliser, and sugar

6 0
3 years ago
Imagine you are a consultant who has been asked to summarize the strengths and weaknesses of Customaria, a nation with a pure tr
zavuch27 [327]

Answer:

There is little cooperation, relative to other economies.

The participants in the economy are slow to adopt new beneficial technologies due to previous customs.

Occupational choices can be restricted.

Explanation:

<em>Traditional economies</em> are old economy types that rely mainly on barter as a a mean of exchange. Their customs and tradition hinder changes related to technology, showing high resistance to change. Since economy is mainly based in the primary economy sector, occupational choices are usually limited for inhabitants.

There is the absence of international trade, as barter is the reigning exchange method done only inside the country.

7 0
3 years ago
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