Answer: Option D
Explanation: Internal rate of return ,denoted as IRR, is the rate at which the net present value of a capital investment is zero. It is the rate at which the cash flows of the investment are discounted back to calculate the present value.
While, required rate of return is that return which an investor expects to achieve over time from a capital project.
Thus, one would only select a capital project only if the NPV of a project is positive which can only happen when the return on investment, that is, IRR, is greater than cost of capital, that is, required rate of return.
The main difference of the two is the kind of employers who can offer the saving plans. For 403(b) saving plans, this applies to nonprofit companies, schools, government organizations, hospitals and religious groups. They are exempt of some administrative processes making it less costly compared to 401(k) savings plan. 401(k) savings plan is applied on private companies.
Raising the prices of their jam after people start buying it because they will want that jam no matter the price if they even relize it has gotten more expensive
Option C
If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economics would say that expectation formation is: adaptive.
<u>Explanation:</u>
Adaptive expectations hypothesis implies that investors will modify their expectations of future behavior based on current prior behavior. In finance, this impact can effect people to produce investment decisions based on the way of contemporary historical data, such as stock price activity or inflation rates, and modify the data to prophesy future exercise or rates.
If the market has been trending downward, people will possible expect it to proceed to trend that way because that is what it has been acting in the recent past.
Answer: 3500
Explanation:
The company would report net cash provided by (used in) financing activities based on the following:
Cash proceeds from bank loan 9,800
Less: Cash dividends paid to stockholders 3,600
Less: Cash payment (principal) on bank loan 2,700
Cash flow on financing activity will now be:
= (9800 - 3600 - 2700)
= 9800 - 6300
= 3500
Therefore, the The company would report net cash provided by (used in) financing activities of 3500
