Entertainment; actors, singers, etc.
Answer:
21%
Explanation:
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 with a financial calculator
Cash flow in year 0 = $-400,000.
Cash flow in year 1 - 4 = $157,452.975
IRR = 21%
To find the IRR using a financial calculator:
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 then press the compute button.
Answer:
It will increase by 50%
Explanation:
Equity is given as: credit - short market value.
Find attached below table of solution
Cost of machine = $1,000

=

= $1,492.11

)=

= $75.13
Total NPV = -1000+1492.11+75.13 = $567.24 ≈ $567