An initial price of $one hundred. years later the charge is $132.The ghi's geometric implies a rate of return ($132/$a hundred)^half of - 1 = 14.89%.
A rate of return (RoR) is the net advantage or lack of funding over a distinctive time period, expressed as a percent of the funding's preliminary cost. 1 while calculating the rate of return, you're figuring out the proportion trade from the beginning of the length till the stop.
The yearly fee for the rate of return is the share change within the cost of funding. for example: if you count on you earn a ten% annual charge for going back, then you are assuming that the price of your investment will grow with the aid of 10% every yr.
For instance, if funding is well worth $70 at the give up of the 12 months and turned into bought for $60 at the beginning of the yr, the annual rate of return could be sixteen. sixty six%.
ROI is calculated by subtracting the initial cost of the funding from its final price, then dividing this new variety by way of the cost of the investment, and, sooner or later, multiplying it with the aid of one hundred. The price of return is calculated as follows: (the funding's modern cost – its initial value) divided via the preliminary value; all times one hundred. Multiplying the outcome enables to the expression of the outcome of the system as a percentage.
Learn more about the rate of return here
brainly.com/question/24301559
#SPJ4
Answer:
Selling price= $30
Explanation:
Giving the following information:
Unitary cost:
Variable= $30
Fixed= $16
Number of units= 4,100
<u>Normally, when there is unused capacity and a new customer asks for a reduced price, the fixed cost should not be taken into account when calculating the selling price. </u>The company benefits from increasing its sales, acquiring a new customer, and perhaps getting some discounts from suppliers in the variable components.
<u>The lower price that the company accepts is the one that equals the unitary variable cost. In this case:</u>
Selling price= $30
Answer:
$834,608 (Approx).
Explanation:
For computing the net present value first we have to determine the following calculations
After tax cost of debt
= Pre tax cost of debt × (1 - tax rate)
= 5.76% × (1 - 0.4)
= 3.456%
As we know that
Debt-equity ratio = debt ÷ equity
Therefore
Debt = 0.65 × equity
Let us assume the equity be $x
So,
Debt = $0.65 x
Total = $1.65x
Now
WACC = Respective costs × Respective weights
= (0.65x ÷ 1.65x × 3.456) + (x ÷ 1.65x × 11.37)
= 8.2523636%(Approx)
Now
Present value of annuity = Annuity × [1 - (1 + interest rate)^ -time period] ÷ rate
= $1.51 × [1 - (1.082523636)^ -9] ÷ 0.082523636
= $1.51 × 6.18185982
= $9,334,608.33
Now
Net present value = Present value of cash inflows - Present value of cash outflows
= $9,334,608.33 - $8,500,000
= $834,608 (Approx).
