Answer:
Projects E,F and G should NOT be considered.
Optimal Capital is $5,750,000
Explanation:
The accept-or-reject rule, using the IRR method, is to acceptthe project if its Internal Rate of Return (IRR) is higher than theWeighted Average Cost of Capital(k) [r>k]. The project shall berejected if its internal rate of return is e lower than theWeighted Average Cost of Capital cost of (r<k)
Accept if r>k
Reject if r<k
Mayaccept if r = k
If the Weighted Average Cost of Capitl (WACC) is less than IRRrate, then the project has positive NPV; if it is equal to IRR, theproject has a Zero NPV, and if it is greater than the IRR, theproject has negative NPV.
The projects should be accepted as the rate of return on theproject is higher than the WACC(10.8%) which means that theprojects will be profitable as the returns are higher than the costof the project (capital). Considering this projects E,F and G should NOT be considered.
And considering the sizes the Optimal Capital is $5,750,000 (the addition of sizes of all projects)
The calculated present value of the annuity is $915,166.70.
Explanation and Solution:
Annuity is a collection of fixed payments made or earned either at the close or at the beginning of any term such that a significant initial payment or receipt may be turned into a set of comparatively minor payments or receipts. An annuity that lasts indefinitely is called perpetuity.
The formula for the present value of the annuity is given by:
Where;
R = annual payment = $75,000
i = interest rate = 5.25%
P = Present value of annuity
n = number of years = 20 years
P = 
P = $915,166.70
Answer:
Private Savings + (Imports – Exports) = Investment + (Government Spending – Tax)
Explanation:
This relationship expressed in the equation above is a macro economy equation which is correct and implies that the quantity supplied of financial capital is equal to the quantity demanded of financial capital.
Supply of financial capital is represented by "Private Savings + (Imports – Exports)", while the demand for financial capital is represented by "Investment + (Government Spending – Tax)".
I wish you the best.
Answer: "intellectual capital" .
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Answer:
The correct answer is option A.
Explanation:
Monopolistic competition is a market structure where there is a large number of producers selling differentiated products. These firms are price makers. There is very low or no restriction on the entry and exit of new firms.
Positive economic profits earned by the existing firms will attract potential firms to enter the market. When new firms enter, it increases the supply in the market.
This causes the price and market share of existing firms to decline. As the individual demand curves of the existing firms shift to the left, their profits will increase as well.
