Answer:
The payback period is more than 5 years
Explanation:
Net present value is the Net value of all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Year Cash flow PV factor Present Value
0 ($490,000) 1 ($490,000)
1 $40,000 0.909 $36,360
2 $10,000 0.826 $8,260
3 $120,000 0.751 $90,120
4 $90,000 0.683 $61,470
5 $180,000 0.621 <u> $111,780 </u>
Net Present Value ($182,010)
NPV of this Investment is negative so, it is not acceptable.
Payback period
Total Net cash inflow of the investment is $440,000 and Initial investment is $490,000. This investment will take more than 5 years to payback the initial investment.
Answer:
bond market value $660
Explanation:
We need to calculate the present value of the maturity and the cuopon payment using the effective rate of 9.7%
First we do the annuity:
C 24.25 (1,000 face value x 4.85 bond rate / 2 )
time 24.00 (12 year 2 payment a year)
rate 0.04850 (current rate divide by 2 to get it annually)
PV $339.55
Then present value of the maturity
Maturity 1,000.00 the face value of the bond
time 24.00
rate 0.04850
PV 320.89
Finally we add them together:
PV coupon payment $339.5545
PV maturity $320.8910
Total $660.4455
rounding to nearest dollar
bond market value $660
Answer: 10% or $2,000,000
Explanation:
Seeing as no figures were produced, we will have to do this ourselves.
We will make assumptions which include the following,
Life of the equipment = 10 Years
Salvage value = 0
Those are our 2 assumptions.
In that case then,
The Annual Depreciation will be,
Depreciation = (Cost of equipment - Estimated salvage value) / Estimated useful life
= (20 - 0) / 10
= $2 million
Seeing as 2 million is,
= 2/20 * 100
= 10%
That would mean that annual depreciation costs at that facility will rise by $2 million or 10%.
If you need any clarification do react or comment.
Answer:
First blank: Consumers
Second blank: GDP
Third blank: CPI
Explanation:
The Consumer Price Index is used to measure the basic basket of services and goods that a normal person often buys in order to have a decent quality of life, the GDP includes all goods and services produced, for example all the office equipment, or farm equipment that was produced by a countries economy, the average customer doesn´t need farm equipment nor office equipment that is why it is not taken into account in the Costumer Price Index.
Answer:
C. technological advances are the result of discoveries and choices.
Explanation:
The new growth theory was developed by a man named med Paul Romer. This new growth theory stresses the role which is determined by human choices.
The new growth theory states that technological advances are the result of discoveries and choices, rather than random choices. It explains the fact that new innovations and technological advancement are not the result of random chance, but they occur as a result of humans and their desire for new innovations.
Therefore option C is correct
