Answer:
Please Kindly check the attach picture, the full working is there.
Explanation:
The D. internal rate of return (IRR) <span>is the discount rate that equates the present value of the cash inflows with the initial investment.
This term refers to the profitability of a potential investment, meaning that it will show you how much an investment costs, and how much money you can possibly earn by predicting its future price and cost. It can also show you whether it is sensible to invest in something. </span>
Answer:
(d)cannot tell without more information.
Explanation:
Autarkic economy is a self reliant economy, consuming entirely from its own production.
An autarkic economy maximises its utility when : Its PPF & Social Indifference Curve are tangent to each other.
- PPF is sort of a budget constraint to economy, because it denotes maximum production potential with given resources & technology.
- Social Indifference Curve is the curve denoting product combinations yielding same level of social satisfaction.
Their tangency gives utility maximising point with the available resources & technology.
Other options are inapt because: Production on PPF is a necessary but not sufficient condition for social utility maximisation (tangency also needed). Production under PPF reflects under utilisation of resources, cant be utility maximising. Production above PPF is unattainable.
Answer:
Carter Co. has greater financial risk as compared to Sunny Co. and to the average financial risk in the industry.
Explanation:
Since the industry average is 3.20
Provided Debt to Equity is
Sunny Co. 4.00
Carter Co. 6.00
Since debt to equity represents the financial risk associated with the product.
It is clear that both the companies are on a higher financial risk than that of the industry.
Further the company is still in a better position than that of the competitor, as the later has higher debt to equity ratio.
Therefore, the first statement concluding that the financial risk of Carter Co. is highest of all including the competitor and the industry average is True.
