Answer:
a. Annual Net cash flows:
= Revenue - Expenses + Depreciation
= 26,000,000 - 15,000,000 + (90,000,000 / 30 years)
= 11,000,000 + 3,000,000
= $14,000,000
b. Net present value:
= Present value of cashflows - Investment cost
= (Annual cashflow * present value of an annuity, 14%, 30 periods) - Investment cost
= (14,000,000 * 7.003) - 90,000,000
= $8,042,000
c. Company should construct the hotel as it would bring a positive Net Present Value
Note: In "b" the cashflow was treated as an annuity because it is constant.
Answer:
Option D. We are 95% confident that the mean amount spent on electric service among the 160 households is between $151 and $216.
Explanation:
A confidence interval is a range of values, derived from the sample statistics, which may include the value of an unknown population parameter.
A 95% confidence interval indicates that between 152 of 160 samples (95%) of the same population will produce confidence intervals that will contain the population parameter.
It also means that we have a 95% confidence that the average (average amount) is among the resulting amounts obtained.
Logically, option "D" is missing the final part. This would be: D. We are 95% confident that the mean amount spent on electric service among the 160 households is between $ 15.
This is the only true option, since the test is based on a sample of only 160 households, the entire population of households cannot be included.
Hence, the correct option is:
Option D. We are 95% confident that the mean amount spent on electric service among the 160 households is between $151 and $216.
BP's expansion plans were reduced, and its ability to compete with other large multinational oil companies like <u>Exxon Mobil and Shell</u> became limited.
BP (British Petroleum) is an integrated oil company which is headquartered in London, United Kingdom. This company is mainly involved in exploring and developing oil and natural gas sources.
BP's competitors were Exxon Mobil, Shell and many other large multinational oil companies. Thus, because of this competition BP's expansion plans were reduced, and its ability to compete with other large multinational oil companies became limited.
Hence, BP also failed to go beyond Petroleum.
To learn more about Exxon Mobil and Shell here:
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Answer: increased competition
Explanation:
Without the existence of a free trade, Sapphira is acting in the capacity of a monopolistic seller and as such can fix price at whatever level she wants to fix it. This changes with the introduction of free trade, as similar products are allowed to come in with lower prices and in order to keep up she has to lower her prices also.
Its to be able to identify the problems in a certain house or on what ever you are inspecting
