Answer:
1. $275 million
Yes
2. 30%
Explanation:
Calculation for the NPV of the investment opportunity
NPV = –100 + 30/0.08
NPV= $275 million
Therefore the NPV will be $275 million
Yes, Based on the above Calculation they should make the investment
2. Calculation for IRR
IRR: 0 = –100 + 30/IRR
Hence,
IRR = 30/100
IRR = 30%
Therefore the IRR will be 30%
The IRR is great only in a situation where the cost of capital does not go beyond 30%.
Nicotine has a stimulant effect and therefore is addictive. The addictive effect is noticable in people who still smoke cigarettes even though they are aware of the very real dangers of lung cancer induced by lengthy cigarette smoking.
Solution :
![U(A, B) = 5A + 2B](https://tex.z-dn.net/?f=U%28A%2C%20B%29%20%3D%205A%20%2B%202B)
a). Bundles
= U ( _____ , 2), lie on the same indifference curve. Suppose missing numbers is x.
So, ![U(40, 5) = U(x, 2)](https://tex.z-dn.net/?f=U%2840%2C%205%29%20%3D%20U%28x%2C%202%29)
(40 x 5) + (2 x 5) = 50x + (2 x 2)
210 - 4 = 5x
![x = 41.2](https://tex.z-dn.net/?f=x%20%3D%2041.2)
So Alexander has
apples and
bananas. The indifference curve though
also include bundle.
Therefore, (41.2, 2)
b). ![$MRS_{BA} = \frac{MU_B}{MU_A}$](https://tex.z-dn.net/?f=%24MRS_%7BBA%7D%20%3D%20%5Cfrac%7BMU_B%7D%7BMU_A%7D%24)
![$=\frac{\delta U/\delta B}{\delta U/\delta A}$](https://tex.z-dn.net/?f=%24%3D%5Cfrac%7B%5Cdelta%20U%2F%5Cdelta%20B%7D%7B%5Cdelta%20U%2F%5Cdelta%20A%7D%24)
![$=\frac{2}{5}$](https://tex.z-dn.net/?f=%24%3D%5Cfrac%7B2%7D%7B5%7D%24)
= 0.4
So Alexander has
apples and
bananas with this bundle. Alexander would like to give up
unit apples for a banana.
Answer:
Option C: Production Era
Explanation:
The production era. Is known as Stage 2 of marketing's evolution. found in the 1930s, highest production capability than ever before. The problem now became competition then. It was characterized by mass production of lots of products increased the availability of product in the marketplace that is available.