Answer:
Explanation:
a.)
Using Financial calculator, enter the following CFs to find NPV;
CF0 = -1,800,000
C01 =600,000
C02 =600,000
C03 =600,000
C04= 600,000
C05 = 600,000
Interest rate ( I ) = 8%
CPT NPV = $595,626.02
b.)
Profitability Index (PI)
<em>PI= NPV of cash inflows / Initial outlay</em>
Using Financial calculator, enter the following CFs;
Find the NPV of the expected future cash inflows;
CF0 = 0
C01 =600,000
C02 =600,000
C03 =600,000
C04= 600,000
C05 = 600,000
Interest rate ( I ) = 8%
NPV = $2,395,626.02
PI = $2,395,626.02/1,800,000 = 1.331
c.)
You can use a Financial calculator to find the IRR;
CF0 = -1,800,000
C01 =600,000
C02 =600,000
C03 =600,000
C04= 600,000
C05 = 600,000
CPT IRR = 19.86%
d.)
Based on the NPV rule, a company should accept a project if the NPV is greater than 0. This project's NPV of $595,626.02 meets this criteria , therefore, the project should be accepted.
Based on IRR rule, a company should accept a project if the IRR of the project is greater than the cost of capital; which is also the required return. The IRR of this project is 19.86% which is significantly higher than the cost of capital of 8% hence in agreement that the project should be accepted. The Profitability Index is also greater than 1 hence the project should be accepted.
Answer:
a. Ed is allergic to his roommate's cat.
Explanation:
In the case of coase theorem the economic conditions in which there is a conflict of proerty rights and the parties that are involved could bargain or negotiate the terms so this will correctly to be shown the complete cost also the values related to the property rights at issue that could result in the effecient outcome or result
So as per the given situation, the option a is correct
Answer:
if you're asking what the origin of soul is, the it is the loneliness by slaves
Answer:
c. cost-leadership strategy
Explanation:
Contour Autos tend to decrease the price of the product and that the quality served of the product is acceptable and not degraded. In this manner as against the normal industry the company supplies same quality goods at lower prices.
This decreases the cost for consumers and therefore, it is termed as Cost-Leadership strategy.
The Company tends to lead in the market through lower cost of goods supplied with the same quality.
Answer:
Simple interest is paid on large, long-term loans, while compound interest is paid on small, short-term loans. Simple interest is paid on the principal and interest accrued, while compound interest is paid only on the principal. Ask for details.
Explanation:
