Answer: B. There are two IRRs so you cannot use the IRR as a criterion for accepting the opportunity.
Explanation:
The Internal Rate of Return can be useful in capital budgeting to enable a company know if an investment will be profitable. It is defined as the discount rate that causes the Net Present Value(NPV) to be zero. If the IRR is greater than the required return then the project should be accepted as it will have a profitable NPV.
IRR has some problems however and one of them is reflected here. There can sometimes be two IRRs and when this happens, using IRR as a viability measure cannot be done because a single rate is needed for comparison with the required return.
Answer:
Routing number, account number and check number
Explanation:
There are three numbers present at the bottom of the check. On the left side or the first number is a nine digit number that is also called RTN, is routing number. This represents the code of the bank where the account was opened.
Second number in the middle is the account number which is a unique number. All transactions are carried out using this number.
The last number on the right side is the check number. It just represents the check number that one is writing to maintain records.
Answer:
Stated interest rate
Explanation:
The stated interest rate is the rate of interest in which the value of the cash interest that has to paid on each date of interest
The value of the cash interest paid could be determined by applying the following formula
= Face value of the securities × Stated interest rate
Therefore as per the given situation, the stated interest rate is the answer and the same is to be considered
