Answer and Explanation:
a. The computation of the internal rate of return is shown below:
Given that
The expected cash inlfows would be $9,400 for four years each
Rate of return is 7%
The Initial investment is $30,455
Based on the above information
The net present value is
= $9,400 × PVIFA factor for 7% at 4 years - $30,455
= $9,400 × 3.3872 - $30,455
= $31,840 - $30,455
= $1,385
Now the present value factor is
= $30,455 ÷ $9,400
= 3.2399
Now based on the factor table, the rate should be 9% for four years
b. Yes depend upon the internal rate of return, the park co should make the investment
A. Vending Machine is a nonstore retailer
a. The probability that a student goes to seek for minor clarification from the professor during office hours = 6%.
b. The probability that a student goes to the professor for major clarification = 14%.
Data and Calculations:
Percentage of students in the class who go to the professor to seek clarifications = 20% (a)
Percentage of students in the class who do not go to the professor to seek clarifications = 80% (100% - 20%) (b)
Percentage of (a) who seek minor clarification = 30%
Percentage of (a) who seek major clarification = 70%
Probability of (a) seeking minor clarification = 6% (20% x 30%)
Probability of (a) seeking major clarification = 14% (20% x 70%)
Thus, the probability of students seeking minor clarification is 6% while the probability of students seeking major clarification is 14%.
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The answer is A the firm should increase output!!!!
Diego is correct because the loan has to be paid in full by a specific date.