William pays his $500 premium every 6 months for automobile insurance with collision coverage. His deductible is $750. William c
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Answer:
CPI for the current year = 200
Explanation:
Given;
Contents in market basket
20X, 30Y, and 50Z
The current-year prices for goods
X = $2
Y = $6
Z = $10
The base-year prices are
X = $1
Y = $3
Z = $5
Now,
Total cost of market basket in the current year
= ∑ (Quantity × Price)
= 20 × $2 + 30 × $6 + 50 × $10
= $40 + $180 + $500
= $720
Total cost of market basket in the base year
= ∑ (Quantity × Price)
= 20 × $1 + 30 × $3 + 50 × $5
= $20 + $90 + $250
= $360
also,
CPI for the current year =
or
CPI for the current year =
or
CPI for the current year = 200
Answer: $57,101.73
Explanation:
First find the present value of the cash inflows. The $32,000 is a constant payment so is an annuity. The net working capital will be realized at the end of the project as well.
Present value of cash inflows = (32,000 * Present value interest factor of an annuity, 4 years, 12%) + 3,000/ (1 + 12%)⁴
= (32,000 * 3.0373) + 1,906.55
= $99,101.73
NPV = Present value of inflows - Outflows
= 99,100.15 - (39,000 + 3,000)
= $57,101.73
