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eimsori [14]
2 years ago
8

Suppose an initial investment of $80 will return $30/year for three years (assume the $30 is received each year at the end of th

e year).
At a discount rate of 25%, this investment ________ profitable.
Business
1 answer:
Yanka [14]2 years ago
7 0

Answer:

not profitable

Explanation:

The computation of investment profitable is shown below:-

The present value of the return is

= 30 ÷ 1.25 + 30 ÷ 1.25^2 + 30 ÷ 1.25^3

= 24 + 19.2 + 15.36

= 58.56 < 80

Therefore, the present value for the return is lower than the initial investment so, the investment is not profitable and hence the same is not to be considered

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Jane Spring maintained this record of vehicle expenses for last year: gas, $845.96; oil, lube, miscellaneous, $68.85; insurance,
allochka39001 [22]

Answer:

Depreciation: $4,000.00

Variable costs : $914.81  

Explanation:

The value of the car when new = $19,860.00

Values after two years =$11,860.00

Accumulated depreciation for two years

= $19,860.00 - $11,860.00

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Assuming straight depreciation method, depreciation each of the two years

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Variable costs are the cost that changes with usages. In this case, variable costs are gas and oil, lube, and miscellaneous.

Variable costs =  $845.96 +  $68.85

Variable costs =  $914.81    

 

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2 years ago
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8 0
3 years ago
In economics, the forces of___________________and__________________ determine the ____________________ in the market. Group of a
ASHA 777 [7]

Answer:

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Someone who is retiring has more experience on what to invest in than someone who is still getting used to knowing what to invest in  
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Answer:

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