Its real GDP will be $1280.
According to the data provided here, we have that;
Production of 220 pounds of jelly beans at $5 means = 220 x 5 = $1100
While the 90 pounds of gum drops at $2 = 90 x 2 = $180
As production is an investment (I) so,
real GDP = $1100 + $180 = $1280
Hence, the real GDP of the production of two consumer goods ( Commodities ) is $1280.
When the production after completion goes to the market and after selling they generate revenue and the investment and profit come back which actually calculates the real GDP of an economy.
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Answer:
$2,033
Explanation:
The computation of the terminal value at the end of the year 2 is shown below:
= {Free cash flow of the firm × (1 + growth rate) × (1 + growth rate) + (1+ growth rate)} ÷ (WACC - growth rate)
= {($80 million × (1 + 0.10) × (1 + 0.10) × (1 + 0.05)} ÷ (10% - 5)
= $101.64 ÷ 0.05
= $2,033
We simply applied the above formula so that the Terminal value could arrive
Answer:
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Answer:
A) Based on NPV, Mike will choose 2nd influencer.
B) Based on IRR, Mike will choose 2nd influencer.
Explanation:
See images to get the appropriate answer:
