Answer:
IRR 6% for Jabob
His friend will need 12 years saving cash to obtain their collegue funds.
Explanation:
We will solve for the rate being the annuity of 3 payment of 800
and the present value 2,138.41
C 800
time 3
PV 2,138.41
rate ?
To solve we can use excel, a financial calculator or trial and error
For excel we will do the following:
write the list of cash through the loan life:
-2,138.41
+800
+800
+800
then we write in the empy cell
=IRR(
select the values and press enter
This will give the IRR which is 6%
For the second assignment:
we need to solve for time:
C 3,800
time n
rate 0.06
PV $31,897
We work out the formula:
Now we solve the right side and apply logarithmic properties
-n = -11.77128325
n = 11.77
It will take 12 years to obtain their target amount
Answer:
The net benefit is -$26,000
Explanation:
Given the above information,
The total cost of manufacturing 12,000 circuit boards
= 12,000 × $34
= $408,000
Total purchase price
= 12,000 × $34
= $408,000
Fixed overhead cost applied
= 12,000 × $6
= $72,000
The rental income = $46,000
Outsourcing cost
= Total purchase price + Fixed overhead cost applied - Rental income
= $408,000 + $72,000 - $46,000
= $434,000
Therefore, Net benefit
= Total cost of manufacturing - Outsourcing cost
=$408,000 - $434,000
= -$26,000
Answer:
Option (D) is correct.
Explanation:
It was given that video game is a normal good. We know that there is a positive relationship between the demand for a normal good and income of the consumer, hence, if there is an increase in the income level of the consumer then as a result the demand for a normal good increases which shifts the demand curve for normal good rightwards.
Therefore, this will lead to increase both equilibrium price and equilibrium quantity in the market for video games.
After having consumed electricity and producing carbon dioxide, I made up for it by buying Carbon Offsets.
