Answer:
16.99%
Explanation:
Calculation for the crossover rate
We are going to to calculate the crossover rate using cash flow function on a financial calculator by following the step below:
CF0= 0
Step 1
C01=Project A year 1 -Project B year 1
C01=$28,300-$36,900
C01= -$8,600
Step 2
C02=Project A year 2 -Project B year 2
C02=$31,500-$40,500
C02= -$9,000
Third step
C03=Project A year 3
C03=$22,300
Last step
Press CPT key in order for IRR(INTERNAL RATE OF RETURN) to be display
Hence:
Crossover rate=16.99%
Therefore the Crossover rate will be 16.99%
Answer:
Change in Net worth= $133.62
Explanation:
The two lease options require that the leasee ( the tenant) commit himself to pay a series of equal amount of rent installment at the different time period in the future.
These series of equal periodic cash flows occurring in the future are called annuities.
To have a meaningful comparison, the two annuities should be compared based on their present values. So we compute the present value of the two using the formula below:
Present Value (PV) =( A × (1- (1+r)^(-n))/r
Option 1:Current lease
PV = 500 × 1-(1+0.05)^(12)
= 500 × 8.863251636
= $4,431.62
Option 2: New Offer
This will be done in two steps:
PV of lease in year 3
PV =700 × (1-(1+0.05)^(-9))
= 700 × 7.107821676
=4,975.47
PV of lease in year 0
PV = FV × (1+r)^(-3)
=4,975.47 × 0.8638
=$4,298.00
My net worth would change by the amount of the difference between the two PV of the two annuities:
Difference in PV = $4,431.62-$4,298.00
Change in Net worth= $133.62
Answer:
The difference between the two is that Hazard insurance can cover you and or protect you against "structural damage caused by natural disasters".
Meanwhile Homeowners insurance is "a financial protection against theft"...
So, long story short,
Hazard insurance=protection from natural disasters (structural damage)
Hazard insurance=protection from natural disasters (structural damage)Homeowners insurance=protection against theft and damage to your home and belongings
I hope this helped!!
Cannibalization occurs when a producer offers a new product that takes sales away from its existing products: TRUE
<h3>
What is cannibalization?</h3>
- Cannibalization in marketing strategy refers to a decrease in sales volume, sales revenue, or market share of one product when the same company releases a new one.
- Cannibalization occurs when a manufacturer introduces a new product that competes with its existing items.
- Market cannibalization occurs when a corporation introduces a new product that replaces one of its existing ones.
- When a new product is identical to an old one and both share the same client base, market cannibalization occurs.
Therefore, the statement "cannibalization occurs when a producer offers a new product that takes sales away from its existing products" is TRUE.
Know more about cannibalization here:
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The correct question is given below:
Cannibalization occurs when a producer offers a new product that takes sales away from its existing products. TRUE or FALSE
