Answer:
Project A is more valuable than Project B given a positive discount rate.
Explanation:
Let us assume the Discount Rate be r and cash flow for year n be CFn
Also
Let us assume initial Investment be X
So,
NPV = ΣCFn ÷ (1+r)^n
NPVA = - X + 6500 ÷ (1 + r) + 4500 ÷ (1+r)^2 + 2500 ÷ (1+r)^3
NPVB = - X + 2500 ÷ (1+r) + 4500 ÷ (1+r)^2 + 6500 ÷ (1+r)^3
NPVA - NPVB = - X + 6500 ÷ (1+r) + 4500 ÷ (1+r)^2 + 2500 ÷ (1+r)^3 - (- X + 2500 ÷ (1+r) + 4500 ÷ (1+r)^2 + 6500 ÷ (1+r)^3)
= 4000 ÷ (1+r) - 4000 ÷ (1+r)^3 = 4000(1 ÷ (1+r) - 1 ÷ (1+r)^3)
In the case when
Ir > 0, 1 ÷ (1+r) > 1 ÷ (1+r)^3
So,
NPVA - NPVB > 0 => NPVA > NPVB
I believe the answer is C. Hope this helped!
Answer:
the Sharon's marginal utility per dollar increases
Explanation:
We have given
In present scenario
Marginal utility derived = 12
And price per unit = $2
So marginal utility per $ 
Now in revised scenario
Number of utility derived = 7
And And price per unit = $1
So marginal utility per $ 
So the Sharon's marginal utility per dollar increases
When there is an increase in quantity demanded, there will be a movement downward and to the right along a demand curve.
<h3>What is a demand curve?</h3>
On a demand graph, the curve shows the relationship between the price of a good and quantity demanded for its at a given period of time.
However, when there is an increase in quantity demanded, there will be a movement downward and to the right along a demand curve.
Therefore, the Option A is correct.
Read more about demand curve
<em>brainly.com/question/9469192</em>
Answer:
It will take 5 years and 259 days.
Explanation:
Giving the following information:
A new CEO promises to increase company sales by 7% per year from its current level of $5,435,678 to a target level of $8 million.
We need to use the following variation of the final value formula:
FV= PV*(1+i)^n
Isolating n:
n=[ln(FV/PV)]/ln(1+r)
PV= 5,435,678
FV= 8,000,000
i= 0.07
n= ln(8,000,000/5,435,678) / ln(1.07)
n= 5.71
<u>To be more accurate:</u>
0.71*365= 259
It will take 5 years and 259 days.
