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2 years ago

The classical dichotomy refers to the separation of

Business

1 answer:

Molodets [167]2 years ago

3 0

Answer:

Explanation:

The classical dichotomy states that real variables e.g. employment are dependent of monetary variables or nominal variables and so they can be analysed separately. According to this theory, the primary function of money is to enhance the efficient production and exchange of goods and services. According to the theory, an economy exhibits classical dichotomy if real variables can be analysed separately from nominal variables

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Two mutually exclusive projects have 3-year lives and a required rate of return of 10.5 percent. Project A costs $75,000 and has

Norma-Jean [14]

Answer:

Both projects should be rejected

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

For project A,

Cash flow in year zero = $75,000

Cash flow in year one = $18,500

Cash flow in year two = $42,900

Cash flow in year three = $28,600

IRR = 9.12%

For project B,

Cash flow in year zero = $-72,000

Cash flow in year one = $22,000

Cash flow in year two = $38,000

Cash flow in year three = $26,500

IRR = 9.48%

The decision rule on if to invest or not is if IRR > r

For both investments IRR is less than rate of return

9.12% < 10.50%

9.48% < 10.50%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button, and the compute button.

I hope my answer helps you

8 0

3 years ago

Pei's savings account balance is $12,000 today. Pei opened the account exactly 7 years ago with a $10,000 deposit. Pei has made

koban [17]

Answer:

2.64%

Explanation:

A = P(1 + r)^n

A = $12,000

P = $10,000

n = 7 years

12,000 = 10,000(1 + r)^7

(1 + r)^7 = 12,000/10,000 = 1.2

(1 + r)^7 = 1.2

1 + r = (1.2)^1/7

I + r = 1.0264

r = 1.0264 - 1 = 0.0264

r = 0.0264 × 100 = 2.64%

5 0

3 years ago

If you are leading a meeting, what can you create to make sure you don't forget anything that should be discussed in the meeting

Archy [21]

If you leading a meeting you can create a power point so that you stay on track with your meeting. When you create a power point you are able to make slides with information you want to discuss to refer back to if you forget anything. Most people use bullet points to create their slides for the power point so that they are able to easily read the information on it.

6 0

3 years ago

What are taxes that are applied specifically to imports and/or exports?

Step2247 [10]

Answer:

hola nose puede en español

3 0

2 years ago

On May 1, 2021, Cedar Corp. paid $432,000 for rent on warehouse space one year in advance. On November 1, 2021, Cedar Corp. ente

lorasvet [3.4K]

Answer: $324,000

Explanation:

Cedar Corp. paid $432,000 for a year in advance. According to the Accrual principle in Accounting, expenses are to be recorded only when incurred.

The rent will therefore have to be apportioned to the months that it has paid for in the current period.

Rent for year = $432,000

Rent for month = 432,000/12 = $36,000

April - December = 9 months

Rent for the year = 9 * 36,000

= $324,000

Note; <em>Question is about Rent expense which is how much Cedar Corp has paid not about how much they have received. </em>

4 0

3 years ago