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Gekata [30.6K]
3 years ago
10

Consider the following capital budgeting problem, you invest 100 and expect to receive $50 in each of the next three years. The

discount rate is 10%. What is the initial cost of the project, how much value is created and what would you be willing to sell the project for?
Business
1 answer:
Zanzabum3 years ago
6 0

Answer:

What is the initial cost of the project?

the initial cost or initial outlay = $100

how much value is created?

the NPV of the project = -$100 + $50/1.1 + $50/1.1² + $50/1.1³ = $24.34

the NPV basically gives us how much value or wealth is created by the project

and what would you be willing to sell the project for?

selling price = $124.34 (= initial outlay + NPV)

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Capital brought into a business in exchange for a percent of ownership in the business is called
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Answer:

D: Equity financing

Explanation:

Equity is ownership in the business - equity financing means giving up ownership in order to secure financing.

3 0
3 years ago
Answer this question on the basis of the given information for an economy in 2016. dollar value of resource extraction activity
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<span>Basis of the given information for an economy in 2016. Dollar value of resource extraction activity = $20 billion Dollar value of production activity = $50 billion Dollar value of distribution activity = $80 billion Dollar value of final output = $110 billion Gross output for this economy in 2016 equals $260 billion.</span>
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3 years ago
What was the ratio of per capita income in each of the following countries to that in the United States in the year 2010:
svet-max [94.6K]

Answer:

For   Countries (per capita)          United States of America (per capita)

<u> Ethiopia: </u>        

$380                                               $48,468

<u>Mexico:    </u>                                      

$9,271                                             $48,468

<u>India:</u>

$1,358                                             $48,468

<u>Japan:</u>

$44,508                                          $48,468

Explanation:

Ratio per Capita also known as Gross Domestic Product per Capita (GDP Capita) is the monetary measure of the market value of all the final goods and services produced in a specific time period within the country in view. <em>It is useful for comparing national economies of different countries on the international market.</em>

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3 years ago
You rented space for a kiosk at the mall last year for the holiday season for $750. This year they increased it to $825. What is
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10%

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Cost of kiosk last year = $750

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Percentage increase = $825-$750 / $750 * 100

Percentage increase = $75 / $750 * 100

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So the percentage increase in the cost of rent is 10%.

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7. Allowance, a paycheck, gifts, and gains from an investment are examples of
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Answer:a

Explanation:

8 0
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