Answer: 28.57%
Explanation:
Average return given the variables will be;
Average rate of return = 
Average rate of return = 1,000,000/3,500,000
Average rate of return = 28.57%
Answer:
4) Hyperinflation
Explanation:
Hyperinflation is when the prices of goods and services rise more than 50 percent a month. At that rate, a loaf of bread could cost one amount in the morning and a higher one in the afternoon. The severity of cost increases distinguishes it from the other types of inflation.
Answer:
The board of directors because the board of directors are ahead of the chief executive, but below the CEO. But have power to control who their CEO is.
Answer:
Carriage Inc. should not invest in the new plant because the IRR of the project is less than its cost of capital.
Explanation:
The investment should NOT be made in the new plant because its internal rate of return is lower than Carriage's cost of capital.
In simple language since the return (IRR) that will be gotten from the new plant is LOWER than the cost (cost of capital), then the company is not making a profit if it invests in this new plant.
Generally, as a decision rule, a company should only invest when the IRR is higher than (or equal to) its cost of capital.
Answer:
d. $83,651.
Explanation:
In this question, we use the proportionate method which is shown below:
Salary in 2014 in dollars equals to
= Salary in 2004 × (Consumer price index in 2014 ÷ Consumer price index in 2004)
= $62,000 × (170 ÷ 126)
= $83,651
Simply we use divide the consumer price index in 2014 by consumer price index in 2004 and then multiply it with the earned salary in 2004
