Answer:
The IRR is 26.3
The project should be accepted
Explanation:
Period Cash Flow
0 -28643.0
1 21000.00
2 16000.00
3 4000.00
IRR 0.26299326 = 26.30
The IRR is the rate at which the net present value is zero
It is calculate with trial an error.
using a financial calculator.
or excel.
for example we calculate with rate 0.26
NPV = 101.40
and rate 0.27
NPV = -234.79
at 26 the NPV is positive
at 27 negative, so the IRR is vbetween those two values.
once we have this, we start moving whit the decimals
26.1
26.2
26.3
until we are close enough
In this case at 26.3
NPV = -0.23
we are close enought on a project of thousands of dollars we are missing for cents.
Answer:
Over the economic life of the asset.
Explanation:
An asset obtained under a financial lease must be depreciated in the same way as the company would depreciate any other similar fixed asset. E.g. a leased truck should be depreciated similarly to other trucks owned by the company.
In a financial lease, the lessor amortizes the asset's value, while the lessee depreciates the assets as common fixed assets (a lessee doesn't amortize).
Answer: This is the correct and complete question ; The demand function for a product is given by p = -0.05x2 - 0.3x + 0.8, where p is the unit price in dollars and x is the weekly demand for the product each week, measured in thousands of units. Find the consumer's surplus if the market price for the product is $5.
Answer for the consumer surplus is 7033.3million
Explanation:
The concept of consumer surplus shows the disparity between the price that consumers are willing to pay for a product in the market and the actual price they do pay on a product. Consumer Surplus is also the difference between the price that a consumer is willing to pay for a commodity and the price that the consumer actually pays. For example, if you would pay 76p for a cup of tea, but can buy it for 50p – your consumer surplus is 26p
Consumer surplus is measured as the area below the downward-sloping demand curve, or the amount a consumer is willing to spend for given quantities of a good, and above the actual market price of the good, depicted with a horizontal line drawn between the y-axis and demand curve.
The attached below shows the detailed calculations with steps.
Answer and Explanation:
Clude had purchased the raw land three years ago for $150000 and treated it like a inventory. she constributed the property to south peak investments LLC in exchange for 10% profit interest. but south peak will hold it for investment purpose.
a) after 4 years from Cludes contribution south peak sells the land for $3000000 the gain would be $3000000 - 1500000 = 1500000. the character is of long term capital gains since ths LLC held ot as investment asset
b) if south peak sells the asset after 5 years six months then also the gain would be sa,e and character would be same since LLC has held the asset fore investments purpose and at the same time its holding period is above one year.
Answer:
The correct answer is option A.
Explanation:
The exit of existing firms from the market will reduce the overall market supply. This will cause the market supply curve to move to the left.
This leftward shift in the market supply curve will lead to an increase in the equilibrium price. The equilibrium quantity will be reduced.
The other firms in the market will get more market share and higher profits.
