Answer:
a. Compute the project's net present value.
b. Compute the project's internal rate of return.
Explanation:
we need to calculate the net cash flows = net operating income + depreciation expense = $300,000 + $600,000 = $900,000
now we need to determine the net present value (NPV):
- initial investment -$3,300,000
- CF1 $900,000
- CF2 $900,000
- CF3 $900,000
- CF4 $900,000
- CF5 $900,000
Using an excel spreadsheet and the NPV function with 17% discount rate:
NPV = discounted cash flows - initial investment = $2,879,411.55 - $3,300,000 = -$420,588.45
We can also calculate the internal rate of return using excel and the IRR function:
IRR = 11.32%
Answer:
The answer is increase.
Explanation:
What unions do is basically restrict the number of workers in an industry. They act as a labor cartel in order to increase the unionized workers´ wages. In this specific case, if roofers unionize, eventually there will be less roofers working in the economy. That means if there are less roofers, the ones that remain doing the job will get paid better. On the other hand it also means that there will be a larger supply of workers for other jobs.
Answer:
Jason borrowed $4,4,77.29
Explanation:
In order to calculate this, let we will use the formula for the future value on an invested amount, semiannually, yielding interest at a certain interest rate. This is done as follows:
where:
FV = future value = $6,000 (loan repayment)
PV = present value = amount borrowed = ??
r = interest rate = 10% = 10/100 = 0.1
n = number of compounding periods per year = 2
t = time = 3 years
Therefore, Jason borrowed $4,4,77.29
It would be called scarcity.
False, inflation does not need to be zero to achieve price stability. Although the ideal rate of inflation is zero, that's likely not going to happen. Most record a low inflation rate of of 1% give or take, but not zero. The key factor in price stability is to have a low and consistent inflation rate over time.