Answer:
rate 0.= 5.63%
Explanation:
F0 = -175,000 (oven cost)
Then
520,000 additional revenues
<u>-470,000</u> additional expenses
50,000 net cash flow
We ghave to solve for the rate of return of a 50,000 dollar annuity given it cost 170,000 during four years
C 50,000.00
time 4
PV $175,000.0000
We apply the IRR function in excel to get the IRR
=IRR({-175000,50000,50000,50000,50000})
rate 0.055637846 = 5.63%
For the economy as a whole, macroeconomic equilibrium if the total spending, or aggregate expenditure, equals total production, or GDP: Aggregate Expenditure = GDP.
Macroeconomic equilibrium happens when the quantity of real GDP demanded equals the amount of actual GDP provided at the point of intersection of the ad curve and the AS curve. If the amount of actual GDP provided exceeds the amount demanded, inventories pile up in order that corporations will reduce production and expenses.
Macroeconomic equilibrium is a situation within the economy in which the amount of combination called for equals the quantity of aggregate supply. If there are changes in both aggregate call for or mixture deliver, you can additionally see a trade-in rate, unemployment, and inflation.
The amount of output furnished may be extra than the mixture demand. charges will begin to fall to dispose of the surplus output. As fees fall, the amount of combination demand will increase and the economy returns to equilibrium.
Learn more about macroeconomic equilibrium here: brainly.com/question/1971734
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In a hypothesis, the researcher presumes the independent variable to be caused by another variable.
Answer:
Exposure to credit risk or interest rate risk.
Explanation:
Cost of capital refers to the average cost of equity and debt and this provides an insight into the capital structure of the company. Major factors affecting the cost of capital include;
a. The extent of international diversification: This will impact the possibility of the firm going bankrupt.
b. Access to international capital markets: These multinational companies have more access to reduced costs that stem from foreign financial support.
c. Size of the firm: The larger size of the firms will make these firms get more considerations from creditors.
d. Exposure to country risk: The risk of expansion also might lead to bankruptcy if things are not properly managed.