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Vsevolod [243]
4 years ago
10

Voluntary exchange refers to an act of trading between individuals that makes both parties to the trade subjectively better off.

Business
1 answer:
Bond [772]4 years ago
6 0
The answer would be A. True
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You are offered a chance to buy an asset for $200,500 that is expected to produce cash flows of $100,000 at the end of Year 1, $
Lapatulllka [165]

Answer:

What rate of return (IRR) would you earn if you bought this asset?

8,48%

Explanation:

To find the IRR it's necessary to know which is the discount rate that applied to the cash flow of the assets gives a value that compensate the investment of $200,500.

Year 1   $100.000  / (1+0,0848)^1    =  $92.182    

Year 2   $100.000  / (1+0,0848)^2  =  $35.690  

Year 3   $100.000  / (1+0,0848)^3  =   $41.398  

Year 4   $100.000  / (1+0,0848)^4  =   $31.230  

Total Present Value of Cash  Flow=

$92.182  + $35.690 + $41.398 + $31.230 =  $200,500

There is no way to find the IRR without Excel, the only way is to try with different rates in the current cash flow formula.

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3 years ago
What is the main difference between a personal characteristic and a skill ?
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The main difference between a personal characteristic and a skill is its origin.

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2 years ago
What is a profit?
Shalnov [3]

Answer:

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