Answer:
The answer is c. present value index
Explanation:
Present value index is the ratio decided by dividing net present value of the project by its require initial net cash outflows.
Once having constraint on selecting investment with positive NPV to be made due to lack of fund, a firm's usually use Present value index for further decision making.
The investment with higher present value index shows that it generates more net cash flow or in other words, more efficient and requires less initial cash outflow, and thus usually be chosen over the other ones with lower present value index.
Answer:
$50
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
If I decide to go to the game, I forgot the opportunity of selling the ticket for $50 which is the next best use of the ticket.
I hope my answer helps you
Answer:
whether or not there are close substitutes for the products of the two firms
Explanation:
The law watches closely for mergers that actively seek to inhibit or totally annihilate competition in the market which will be harmful for consumers. Mergers such as horizontal mergers, vertical mergers tend to bring about a monopoly whereby sellers aim to coordinate in a such a way that there is an agreement amongst them and profit is ensured while market becomes less efficient.
Answer:
(C) Higher.
Explanation:
The computation of the present value in both the cases are as follows:
In the first case
Given that
Assume the par value i.e. future value be $1,000
PMT = $1,000 × 9% = $90
RATE = 9%
NPER = 7
The formula is shown below
=-PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $863.09
In the second case
Given that
Assume the par value i.e. future value be $1,000
PMT = $1,000 × 9% = $90
RATE = 9%
NPER = 6
The formula is shown below
=-PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $876.66
So as we can see that the price of the bond would increased