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Marat540 [252]
3 years ago
13

An investor is deciding between two projects, both of which have an initial cost of £5,000. One project will return £10,000 in t

hree years with a 5% discount rate and the other project will return £9,500 in two years with a 3% discount rate. The investor determines the first project is worth £8,638 today, whereas the second project is worth £8,955 today, and he determines to invest in the second project. In deciding between the projects, the investor is most likely using the:
Business
1 answer:
snow_lady [41]3 years ago
5 0

Answer:

The answer is: The net present value of the investments

Explanation:

The net present value calculates the current monetary value of a project's future cash flows, using a discount rate. You must remember that $1 today is worth more $1 in the future.

When deciding what projects should be financed, an investor will always look for projects with a NPV ≥ 0, and if he has to decide between two projects, the he will probably choose the project with the highest NPV.

The easiest way to calculate the net present value is to use an excel spreadsheet and the NPV function:

=NPV(rate,value 1, value 2,... value n)

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The law of diminishing marginal utility suggeststhat A) Price and quantity demanded are directly related. B) People will substit
garri49 [273]

Answer:

D) People are willing to buy additional quantities of a good only if its price falls.

Explanation:

Marginal utility is the additional satisfaction that a person gets from consumption of an extra unit of a product.

Diminishing marginal utility states that as more units of a good is consumed the satisfaction derived reduces.

Since people are less satisfied with consumption, they are less willing to to pay for more.

However if the price of the good falls people will now be more willing to buy as they are spending less on a product they are less satisfied with.

8 0
3 years ago
A sustainable society would emphasize A) maintaining the current rates of energy flow and resource use B) converting the world's
MrRissso [65]

It should be noted that a sustainable society would emphasize using energy efficiently and reusing and recycling matter.

<h3>What is a sustainable society?</h3>

A sustainable society can be regarded as a society that based her source of energy on resuable source.

This source can be solar because it is resuable unlike crude oil , therefore using energy efficiently and reusing and recycling matter should be a target.

Learn more about sustainable society at;

brainly.com/question/3406415

8 0
2 years ago
Alicia really doesn’t like her new boss and is not happy with the new tasks she’s been assigned and the long hours she’s been wo
boyakko [2]

Answer:

E. low job satisfaction.

Explanation:

Low job satisfaction: It is one of the negative forces that drive the organization backward in achieving its objective as a team. Job dissatisfaction could lead to low productivity at the workplace, which will impact the growth of the team over a period of time. The organization needs to take note of these factors that affect its growth process. There are several reasons that cause a decline in job satisfaction:

  • Limited career growth.
  • Underpaid.
  • Poor management.
  • unsupportinve boss.
  • Lack of meaningful work.
  • Work and life balance.

Above are only few reason that cause low job satisfaction, there could be many. In the given case, Alicia is not satisfied with her job as she does not like boss, she is having long working hours and she is not enjoying new task, she is assigned.

3 0
4 years ago
Discuss three consequences of<br> unemployment on the individuals​
lora16 [44]

Answer:

it compells an individual to suffer form various problems like financial hardship and poverty, debt, homelessness and housing stress, family tensions ,etc.

Explanation:

hope it may help you

6 0
3 years ago
Read 2 more answers
What interest is revealed by reading an online magazine about repairing trucks
kolezko [41]

Answer:

Its talking about repairing something that's big and long to repair by yourself and with a repairing company it easier.

Explanation:

3 0
3 years ago
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