Answer:
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Explanation:
If<em> the investment yield 6% per year</em>, each year its value is multiplied by 1.06.
After 2 years, the value is multiplied by 1.06², after 3 years it is multiplied by 1.06³, and so on.
After n years, the value is multiplied by 1.06ⁿ.
You want that <em>the investment quadruples</em>, thus the multiplicative factor is 4, meaning that you want to solve for:
If you do not know logarithms, you can solve by succesive iterations:
- 1.06² = 1.1236
- 1.06⁴ = 1.2625
- 1.06¹⁰ = 1.79
- 1.06²⁰ = 3.2
- 1.06³⁰ = 5.7
- 1.06²⁵ = 4.29
- 1.06²⁴ = 4.05
- 1.06²³ = 3.82
Thus, <em>if an investement yields 6% per years</em>, it takes 24 years t<em>he investment to quadruple in value.</em>
If you know logarithms, you can make n the subject of the equation:
Again, the solution is 24 years.
1) So you don't go over your limit
2) learn how to not spend your money all at one tme
B. Current. Currents are the way electricity travels, voltage is how many volts of electricity is in the current and amperage is the strength of the current.
Answer:
a. The project A's expected annual cash flow is $7,000
The project B's expected annual cash flow is $7,600
b. BPC should choose the project b
Explanation:
a. In order to calcualte the project A's expected annual cash flow we would have to make the following calculation:
project A's expected annual cash flow =0.2*$6,250 +0.6 *$7,000+0.2 *$7,750=$7,000
In order to calcualte the project B's expected annual cash flow we would have to make the following calculation:
project B's expected annual cash flow =0.2*$0 +0.6 *$7,000+0.2 *$17,000 =$7,600
b. Becuase Project B's CV is higher , hence Project B has the higher NPV, thus, the firm should accept Project B.
