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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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Suppose that a firm operating in perfectly competitive market sells 200 units of output at a price of $3 each. Which of the foll
miv72 [106K]

Answer:

The correct answer is option i.

Explanation:

A firm is operating in a perfectly competitive market.  

The firm is selling 200 units of output.  

The price of each unit of output is $3.  

In a perfectly competitive market, a single firm faces a horizontal line demand curve. This horizontal line represents demand, price line, average revenue, and marginal revenue.  

So if the price is $3, it implies that the marginal revenue and average revenue is also equal to $3.  

The total revenue is $600.

4 0
3 years ago
Identify a major transportation problem in any vicinty in ghana or the world (safety, infrastructure, vehicles, policies and so
podryga [215]

The Major problem facing transportation in Ghana and around the world is the human capital and infrastructural issues.

<h3>Human Capital</h3>

   The importance of Human capital cannot be overemphasized in curbing the problems of transportation in Ghana and the world at large. Human capital must interface with physical capital to bring about good transport systems because physical capital will always remain out of existence without the input of human capital.

<h3>Infrastructure</h3>

Transport infrastructure is generally lacking in Ghana and sub-Saharan Africa. There is absence of well developed and functional infrastructure to drive the transport system. Such infrastructure include fast trains, durable roads etc.

Learn more about Transport Infrastructure at brainly.com/question/7152577

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8 0
1 year ago
What is the change due if a $50 bill is tendered for a charge of $9.76?
Grace [21]
The answer would be B.
4 0
3 years ago
Read 2 more answers
How do the internet standards allow for greater commerce? what potential problems could we have if we did not have the ieee?
REY [17]
The Internet standards allow for greater commerce because it helps guide the information and commerce paths as they grow and as we move more and more toward digital operations. If we didn’t have the IEEE or their standards we would have utter chaos when it comes to technology and the level of digital communication and use that we have today on such a coordinated scale simply wouldn’t be possible. It would be like trying to pour water down a platform into a cup a distance away (symbol of worldwide digital coordination). The water can go anywhere it wants to within these guidelines and in the end we end up with water in the glass (i.e. worldwide digital coordination). This allows for an exponential growth in technology worldwide.
8 0
3 years ago
Based on his​ preferences, Bill is willing to trade 4 movie tickets for 1 ticket to a basketball game. If movie tickets cost $8
nexus9112 [7]

Answer:

The correct option is option e)

not trade movie tickets for basketball tickets because his marginal utility per dollar spent on movie tickets is greater than his marginal utility per dollar spent on basketball tickets.

Explanation:

The cost of one movie ticket is $8 then Bills' four tickets will be $32.

The cost of a basketball ticket is $28.

Therefore if bill should trade 4 movie tickets for a basketball ticket he will make a loss of $ 4 so it is advisable for bill not to trade movie ticket for basketball ticket. And again his marginal utility per dollar spent on movie tickets is greater than his marginal utility per dollar spent on basketball tickets.

6 0
2 years ago
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