Answer:
D. The payback period is less than 2 years.
Explanation:
Discount rate 5%
0 1 2
intital investment -10
cash flow 0 30
Total cash flow -10 0 30
NPV 17.21
IRR 73%
Therefore, The NPV is 17.21 and is positive, the statement is True.
IRR > 50%, Therefore the statement made is True
Accounting rate of return = {[(30 - 10)/10]^(1/2)} - 1
= 41% > 0
Therefore, The statement made is true.
Payback period = 2 years, Therefore the statement made is NOT true.
Answer:
Visualize and organize your thoughts.
Explanation:
Answer: Sky's effective interest rate on this loan is 8.39%.
In this question, we assume that interest is compounded annually.
Since Sky issues a non-interest bearing note, Star Finance will deduct 7 months' interest at 8% on the Face Value of the loan and pay the rest as principal to Sky.
Face value of the note $16 million
Discount Rate p.a 8%
Tenure of the note 7 months
[tex]Loan Amount received by Sky = Face Value - Discount on note[/tex]
So, Sky pays an interest of 0.746666667 on a sum of 15.25333333 for 7 months. This works out to a seven month interest of:
From this we can work out the effective interest rate for Sky as follows:
It is Cycle Time that tells us how frequently a product is completed.
<h3>What is Cycle time?</h3>
Cycle time is a measurement of how long it takes a company to produce a good or provide a service. Learning how to determine cycle time will help you improve your production processes. This page provides a definition of cycle time, an explanation of its importance, step-by-step directions, and an example to assist you in calculating the cycle time for your company.
Cycle times can point out places where a business might simplify its procedures in order to increase sales and speed up the production of goods. Cycle times can be used to pinpoint the particular problem that might be causing the output to be sluggish.
Consequently, the phrase "cycle time" describes how frequently a product is finished.
Thus, the cycle time term tells us how frequently a product is completed
For more information on<u> cycle time</u>, refer to the following link:
brainly.com/question/15970682
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