Answer:
Multiple IRRs:
Said another way, Multiple IRRs occur when a project has more than one <em>internal rate of return.</em> The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).
Internal rate of return (IRR) is one of the most commonly used capital budgeting tools. Investors make decisions by comparing the IRR of the project under consideration with the <em>hurdle rate</em>. If the IRR is greater than the hurdle rate, the project is accepted, otherwise it is rejected. When there are more than two IRRs, it is not exactly clear which IRR to compare with the hurdle rate.
Hurdle rate is the minimum required rate of return which businesses use as a benchmark to decide whether to invest in a project or not.
<em>So a typical situation which can generate negative cashflows which can in turn lead to multiple IRRs towards the end of the project is where the conditions of investment become adverse towards the end of the project.</em>
Imagine that toward the end of the lifecycle of a project, a forecasted increase external costs such as Interest Rate, influenced by government policies translates to an erosion of the bottom line generated by the business in that year.
Period 0 1 3 3 4 5
Unconventional cash flows ($)-19,000 16,000 16,000 6,000 6,000 -52,000
The series is non-conventional cash-flow pattern, which has two sign changes. This is the range in which the net present value of the non-conventional cash flow series is positive. The multiple IRR problem poses a series problem to analysts because the decision is not obvious.
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Answer:
Tax Value = 107.5 - 100 = 7.5
i'm not sure about the last portion
Answer:
The question is not complete:
On July 15, 2016, you convert 650,000 U.S. dollars to Japanese yen in the spot foreign exchange market (¥104.91/$) and purchase a six-month forward contract ($0.0095320/¥1) to convert yen into dollars. How much will you receive in U.S. dollars at the end of six months? (Round your answer to 2 decimal places. (e.g., 32.16))
The sum of $650,001.38 would be received in six months
Explanation:
In the first place by buying the yen in the spot market on July 15 ,2016, the amount of yen is computed thus:
$650,000 was at (¥104.91/$) ,which implies that each $ was exchanged for ¥104.91
yen received =$650,000*104.91/1
= ¥ 68,191,500.00
The six month forward contract outcome is as follows:
($0.0095320/¥1)
each Yen was exchanged $0.0095320
dollars received= ¥ 68,191,500.00 *0.0095320/1
=$650,001.38
Answer:
Incubators
Explanation:
In north american context the incubators refers to small places for business provided on low rent.
Basically in the given context, the space for new shops for businesses is given by state and city government, this clearly states that because of involvement of government the prices of such place would be really low as compare to private rental spaces.
This provides that because of this facility incubators will grow.
It is false because the individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.
<h3>What is an Income tax?</h3>
These are tax imposed on earned income by people in a country while the Social Security and Medicare taxes are imposed on people income while working as well.
However, the individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.
Therefore, the Option C is correct.
Read more about Income tax
<em>brainly.com/question/26316390</em>
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