Answer:
Multiple Choice
s
IRR increases
IRR decreases
IRR remains constant
The correct option is that IRR increases
Explanation:
The initial IRR would be calculated while also the increase in cash flow from $200 to $100 in the first two years would be incorporated into computing a second IRR using IRR formula in excel:
=IRR(values)
The values for first scenario are:
Year cash flow
0 -$1000
1 $100
2 $5,100
IRR is 131%
Second scenario:
Year cash flow
0 -$1000
1 $200
2 $5,200
IRR is 138%
IRR increases by 7% (138%-131%)
Answer:
The pound's forward discount or premium is 3.74%
Explanation:
The current spot rate is 1 Pound = $2
The interest rate parity exists, then:
The forward rate:
1 Pound*1.07 = $2*1.11
1.07 Pound = $2.22
1 pound = $2.0748
The Premium in Pound = $2.0748 - $2
= $0.0748
Premium rate = $0.0748/$2*100
= 3.74%
Therefore, The pound's forward discount or premium is 3.74%
Doc's ribhouse ending equity would be $102,000 if has beginning equity of 79000 and net icome of 23000.
<h3>What is equity?</h3>
Equity is the amount of capital invested or owned by the owner of a company. The equity is evaluated by the difference between liabilities and assets recorded.
Doc's ribhouse beginning equity
= $79,000
Net income
= $23,000
Ending equity
= ?
Ending Equity
= Beginning Equity + Net Income - Dividends
= $79,000 + $2
= $102,000
Hence, Doc's ribhouse ending equity would be $102,000
Learn more about equity here : brainly.com/question/11556132
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Answer:
$6.30
Explanation:
For computing the unit price, first we have to determine the difference in cost which is shown below:
= $150,000 - $120,000
= $30,000
Now the break even price would be
= Variable cost + cost difference
= $600,000 + $30,000
= $630,000
So, the unit price would be
= Break even price ÷ number of unit produced
= $630,000 ÷ 100,000 units
= $6.30
