Answer:
B
Explanation:
Net present value is a tool used to analyze how profitable a project by deducting the present value the difference between cash inflow and cash outflow over a period of time.
The formula is (cash flow)/(1+r)^i
Revenue - $750,000
Expenses - $650,000
Increase in net income - 100,000
Annual depreciation charge - 650000/5 =$130,000
Discount rate - 12%=3.605
Present cash value =( $100,000+$130000) = $230,000
Please note that depreciation is added back as it is a non cash expenses
Present value of cash flow = annual cash flow * discount rate
=$230,000*3.605 =829,150
Net present value = 829150-650000= 179,150
This is a classic example of what is termed "Pork" or "Pork barrel politics". Pork is when a legislator tries to divert federal funds to projects in their districts or State. These funds provide jobs and income for his constituents who the will repay him with votes in the next election.
Answer:
The correct answer is: price elastic; increase.
Explanation:
The price elasticity of demand for apples is 1.2.
This implies that the demand relatively prices elastic.
Elastic demand means that a proportionate change in the price of apples will cause more than proportionate change in the quantity demanded.
A decrease in the price of apples will cause its quantity demanded to increase by more than proportionate. This will cause total revenue to increase.
The companies that think carefully about the impact of the sensations are practicing sensory marketing.
<h3>What is sensory marketing?</h3>
This is the type of marketing that is done to make a product to be appealing to all of the five senses of a person that is to consume to the good.
The sensory marketing is correct here because the products are to be appealing to the senses.
Read more on sensory marketing here: brainly.com/question/24925953
Answer:
Expected return on equity is 11.33%
Explanation:
Using Weighted Average Cost Capital without tax formula, overall rate of return is given by the formula:
WACC=(Ke*E/V)+(Kd*D/V)
Kd is the cost of debt at 6%
Ke is the cost of equity at 12%
D/E=1/2 which means debt is 1 and equity is 2
D/V=debt/debt+equity=1/1+2=1/3
E/V=equity/debt+equity=2/1+2=2/3
WACC=(12%*2/3)+(6%*1/3)
WACC=10%
If the firm reduces debt-equity ratio to 1/3,1 is for debt 3 is for equity
D/V=debt/debt+equity=1/1+3=1/4
E/V=equity/debt+equity=3/1+3=3/4
WACC=10%
10%=(Ke*3/4)+(6%*1/4)
10%=(Ke*3/4)+1.5%
10%-1.5%=Ke*3/4
8.5%=Ke*3/4
8.5%=3Ke/4
8.5%*4=3 Ke
34%=3 Ke
Ke=34%/3
Ke=11.33%
