Answer:
Real rate of returns are lower than nominal rates of return, therefore, using a real discount rate would overestimate a project's net present value. This could result in unprofitable projects being accepted because the NPV was erroneously calculated. If you want to use a real discount rate, you must first convert cash flows to real dollars.
For example, nominal discount rate is 10%, inflation rate is 5%, real discount rate is 5%.
Initial outlay $100
NCF year 1 = $40
NCF year 2 = $40
NCF year 3 = $40
Using the real discount rate, the NPV = $8.93
Using the nominal discount rate, the NPV = -$0.53
Answer: CDCynergy and SMART
Explanation:
=> CDCynergy
Process steps in CDCynergy:
(1) Problem Statement
(2) Analyze problem
(3) Plan Intervention
(4) Develop Intervention
(5) plan Evaluation
(6) Implement Plan
=> SMART
SMART criteria
(1) Specific
(2) Measurable
(3) Assignable
(4) Relevant
(5) Time Based
Answer:
differential analysis:
No further process Process further Differential
amount
Sales revenue $410,000 $1,213,400 $803,400
Production costs ($340,000) ($580,000) ($240,000)
Operating income $70,000 $633,400 $563,400
The company should process further and sell products B and C because its operating income will increase by $563,400.
Answer:
III. Points on the PPF curve are the only ones that achieve "productive efficiency"
Explanation:
What is true about productive efficiency is that Points on the PPF curve are the only ones that achieve "productive efficiency".
Productive efficiency is an economic term that is concerned with producing goods and services with the optimal combination of inputs to produce maximum output for the minimum cost.
For it to be said that an economy is productively efficient means the economy must be producing on its production possibility frontier
Hence productive efficiency happens when production is reportedly occurring along a production possibility frontier (PPF).
Answer:
because it is always good to have money and understand and then save it and spend it wisely
Explanation:
