Answer:
The NPV from opening the branch office is negative ( -$106668.08). Thus the branch office should not be opened.
Explanation:
The decision to open the branch office will be taken based on the NPV provided by opening of the branch office. If the NPV of a project is positive based on the required rate of return used as a discount rate fro cash flows, the investment is worth undertaking.
The net present value (NPV) for a project can be calculated as,
NPV = CF1 / (1+r) + CF2 / (1+r)² + ... + CFn / (1+r)^n - Initial Outlay
Where,
- r is the appropriate discount rate
- Initial Outlay is the Initial cost of the project
- CF represents cash flows from the project
As the required return is 16%, we will take this as the appropriate discount rate.
NPV = 45000 / (1+0.16) + 120000 / (1+0.16)² + 150000 / (1+0.16)³ +
150000 / (1+0.16)^4 + 150000 / (1+0.16)^5 - 485000
NPV = - $106668.08
As the NPV from project is negative at a required return of 16%, the project should not be under taken and the branch office should not be open.
Answer:
$7,875
Explanation:
Total car sales in January: $112,500
Commission at the rate of 7%,
Salary for January is :
7 percent of $112,500
=7/100 x $112,500
=0.07 x $112,500
=$7,875
Answer:
The correct answer is C, the advertising strategy of a particular company.
Explanation:
Option is about the rate of prices increase in Brazil as whole,hence that involves the households,the businesses and the government, it is a macroeconomic topic
The increase in the national income of the United States over the past three months is also a macroeconomic topic as it involves the activities of the government of US as well as businesses and private individuals.
The unemployment rate focused on the proportion of the able population who are not gainfully employed in the economy as a whole is also a macroeconomic topic
Here u go this is really helpful I just had this question yw
Answer:
allocate her limited income among all the products she wishes to buy so that she receives the highest total utility is the correct answer.
Explanation:
