<span>Representative money is portable, durable, divisible, and acceptable.</span>
Answer:
MIRR is higher than the discount rate, so this project should be profitable and should be accepted.
Explanation:
using the discounting approach to the MIRR:
NPV = 0 = [(-$236,000 - $25,000) / (1 + MIRR)³] + [$137,400 / (1 + MIRR)] + [$189,300 / (1 + MIRR)²]
Using a financial calculator, MIRR = 17.85%
MIRR (17.85%) is higher than the discount rate (14%), so this project should be profitable and should be accepted.
The modified internal rate of return assumes that the initial investment is financed at the interest rate, while the cash generated by the project is reinvested at the firm's WACC.
Answer:
The correct answer is "Actions intended to make economic outcomes fairer may cause efficiency to decrease"
Explanation:
"Actions intended to make economic outcomes fairer may cause efficiency to decrease"
An equity-efficiency trade-off appears when an increase in the productive efficiency of a market leads to a reduction in its equity.
A clear example of equity-efficiency trade-off is the "fracking" (fuel extract method). The government takes benefits of this because is a more efficient method and is cheaper than the conventional extract method, however, it brings environmental issues, and leads to a reduction in its environmental equity.
Answer:
The correct answer is option D.
Explanation:
Money can be defined as any asset that is generally accepted by people in exchange for goods and services. The basic function of money is to act as a medium of exchange.
It reduces the transaction cost in exchange for goods and services by eliminating the double coincidence of wants.
Money can be of different types such as commodity money, fiat money, etc.
Other functions of money are to act as a store of value and unit of account.
