The better the IRR, the better. but, a corporation may additionally decide on a mission with a decreased IRR as it has other intangible advantages, together with contributing to a larger strategic plan or impeding competition.
Solution:
NPV of Project S= -$1,000 +$895.03/(1+10.5%) + $250//(1+10.5%)^2 +$10//(1+10.5%)^3 +$5//(1+10.5%)^4 =25.49320776
IRR of Project S= -$1,000 +$895.03/(1+r%) + $250//(1+r%)^2 +$10//(1+r%)^3 +$5//(1+r%)^4 =0
IRR =12.80%
NPV of Project L = -$1,000+ $5/(1+10.5%) +$260/(1+10.5%)^2 + $420/(1+10.5%)^3 + $802.50/(1+10.5%)^4
=$67.01
IRR of Project L=
-$1,000+ $5/(1+r%) +$260/(1+r%)^2 + $420/(1+r%)^3 + $802.50/(1+r%)^4 =0
IRR =12.700%
Project L is better than Project S since L has higher NPV
IRR of Project L is 12.7%.
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In the absence of trade, the domestic price of soybeans is pn. if the arena charge of soybeans is pw,b. the home charge of soybeans will rise, and home intake will fall.
The required details about domestic price is mentioned in below paragraph.
A domestic price degree represents the cutting-edge charge for a particular top or carrier in an economy. Government companies or country wide economists have a tendency to study diverse charge degrees for you to verify growing or falling prices, known as inflation and deflation in monetary terms, respectively.The term 'Domestic charge ' because it applies to the region of agriculture may be described as ' The charge at which a commodity trades inside a country, in assessment to the arena charge. For the ones commodities now no longer benefitting from a few shape of charge aid, the domestic price is decided with the aid of using deliver and demand. For commodities that acquire charge aid, the home charge is commonly set with the aid of using the mortgage price or a few similar aid degree that serves as a charge ground withinside the market running at the side of any import quota that can be in effect'.
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Answer:
entrepreneur
Explanation:
An entrepreneur is an individual who initiates the process of creating and managing a business entity with profit motives. They start with developing a business idea and transform it into a successful venture. Entrepreneurs assume the risks associated with starting a new business. They risk their capital, time, and energy with the expectation to make profits.
Entrepreneurs are creative and innovative people. They spot business opportunities where others don't. Entrepreneurs develop products and services that address the community's needs.
Answer:
sole proprietorship
Explanation:
A sole proprietorship is a type of business that is owned by one person
Characteristics
1. it is owned by one person
2. the business has unlimited liability
3. the business has limited access to capital
4. the business usually lacks continuity. this type of business usually ceases to exist when the owner dies
5. the business is usually not separated from the owner
Answer: Joint venture
Explanation: A joint venture can be defined as a business entity, that is created by two or more firms by shared ownership or sharing in risk and returns. The joint venture is usually done by the firms for targeting new emerging markets to increase their customer base.
In the given case, Arboren is a new company and is formed by the joint ownership of three existing firms.
Hence, from the above we can conclude that this is an example of Joint venture.
