Answer:
NPV = $40,952.46
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-28,000
Cash flow in year 1 to 3 = $32,500 - $2,800 = $29,700
I =14%
NPV = $40,952.46
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Answer:
How many minutes of grinding machine time would be required to satisfy demand for all four products = 97,620 minutes.
Explanation:
The minutes of grinding machine required to satisfy demand for all four products -
Grinding time of Product A = Grinding minutes per unit of Product A * Monthly demand in units of Product A
= 5.0 * 5,200 = 26,000
Grinding time of Product B = Grinding minutes per unit of Product B * Monthly demand in units of Product B
= 6.50 * 5,200 = 33,800
Grinding time of Product C = Grinding minutes per unit of Product C * Monthly demand in units of Product C
= 5.50 * 4,200 = 23,100
Grinding time of Product D = Grinding minutes per unit of Product D * Monthly demand in units of Product D
= 4.60 * 3,200 = 14,720
The minutes of grinding machine required to satisfy demand for all four products =
= 26,000 + 33,800 + 23,100 + 14,720
= 97,620 minutes.
Answer:
$1,423.39
Explanation:
For computing the current bond price we use the present value formula i.e to be shown in the attachment below:
Given that,
Future value = $1,000
Rate of interest = 6% ÷ 2 = 3%
NPER = 13 years - 1 year = 12 years × 2 = 24 years
PMT = $1,000 × 11% ÷ 2 = $55
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
After applying the above formula, the current bond price is $1,423.39
Answer:
Brazil has comparative advantage in Ethanol.
Both US & Ethanol can gain from trade, if they specialise in their good of comparative advantage & import the other at lower opportunity cost.
Explanation:
Comparative advantage is when an economy can produce a good with lesser opportunity cost than other economy.
Brazil can produce ethanol at lower opportunity cost, as it uses lesser resources to produce Ethanol, compared to US.
So, Brazil has comparative advantage in producing ethanol. Both US & Brazil can gain from specialisation : As, US can get more ethanol at lesser than domestic opportunity cost. And, Brazil can also gain from trade by importing the good in which US has better opportunity cost & comparative advantage, in exchange of exported ethanol. It would imply Brazil would get more of the other good at lesser than domestic opportunity cost.
