Answer:
10.25%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow = cash inflow - cash outflow
cash outflow = depreciation expense
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
$30,000 / 15 = $2000
Cash flow = $6000 - 2000 = $4000
Cash flow in year 0 = $-30,000
Cash flow in year 1 to 15 = 4,000
IRR = 10.24%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Answer:
as they have access to less-expensive consumer goods.
Explanation:
Economic growth is the increase in total GDP or output of an economy.
If there is a rapid growth in the Chinese economy , it means that the total output produced by China increases. This means that U.S. consumers can import cheaper less expensive consumer goods. This is because the value of the Chinese currency is lower than that of the US dollar
Answer:
B. obtaining inputs at lower prices and selling the output at higher prices.
Explanation:
Arbitrage refers to the activity of trying to earn a gain, by exploiting the inefficiencies between two markets. The rule of arbitrage is to buy at a low price from one market and sell at a higher price in another market.
When interest rate parity theory exists and fair pricing prevails, arbitrage opportunities are wiped out.
Entrepreneurial innovation refers to innovation with respect to products and their attributes. It may also refer to entrepreneur attaining new skill sets and creativity which help in better operations.
Such innovation is also characterized by buying inputs at a lower price and selling the output at a higher price thereby maximizing profits. Buying inputs at a low price indicates innovation in the form of optimal utilization of resources.
Thus, both arbitrage and entrepreneurial innovation are driven by the common factor of buying low and selling high, to maximize gains.
There are different types of bank account. A relationship bank account refers to a theoretical accounting of relationships in which positive deposits and negative withdrawals can be made during every interaction you have with that person.
- The Relationship Bank Account (RBA) is similar to a checking account at a bank. In this account, one can deposits and improve the relationship, or they may make withdrawals and weaken it. Relationship often exist here.
If a person open an RBA with another individual, one cannot close it. Bank relationship balance is simply known to be the total assets that a Customer holds with the Bank, even if it is only one person or jointly owned by the Customer.
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