Answer:
a) 13.704%
b) 3.704%
Explanation:
Development of composite snowboard = 4 years
Total cost / investment = 250,000 * 4 = $1,000,000
Annual cash flows ; $200,000 for 10 years
discount rate = 10%
cash flow at t = 0 = ( Total cost / investment ) = - $1,000,000
<u>a) calculate the IRR for the snow board </u>
attached below is the calculation using online tool
IRR = 13.704%
<u>b) maximum deviation allowable in cost of capital</u>
maxi deviation = IRR - r
= 13.704% - 10% = 3.704%
Answer:
The ansewr is a barter based economy.
In a barter based economy, goods are exchanged for other goods, because no good that takes the functions of money exists (unit of account, store of value, and medium of exchange).
Barter economies can work on a limited scope, but to a larger extent, they can become inefficient, because this type of economy requires a double coincidence of wants: both parties of the transaction must desire the other party's goods.
Answer:
1. 3 years and 9 months
2. $16,439,325
3. 20.33 %
Explanation:
The Summary of the Cash Flows for this project will be as follows :
Year 0 - $7,125,000
Year 1 $1,875,000
Year 2 $1,875,000
Year 3 $1,875,000
Year 4 $1,875,000
Year 5 $1,875,000
Year 6 $1,875,000
Year 7 $1,875,000
Year 8 $1,875,000
Payback Period
$7,125,000 = Year 1 ($1,875,000) + Year 1 ($1,875,000) + Year 1 ($1,875,000) + $1,500,000 / $1,875,000
= 3 years and 9 months
Net Present Value (NPV)
Calculation using a financial calculator :
- $7,125,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
I/YR 12%
Shift NPV $16,439,325
Internal Rate of Return (IRR)
Calculation using a financial calculator :
- $7,125,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
$1,875,000 CFj
Shift IRR 20.33 %
<span>June 23 is the 174th day of a non-leap year. 174 is 48.3% of 360, therefore George should pay 48.3% of $2,345 to the Government. The government thus owes George, and should credit him 51.7% of $2345, which amounts to $1212.37</span>
Answer: Monetary and fiscal policies
Explanation: Monetary and fiscal policies are two tools of the governments all over the world to stabilize economy in times of depression or recession.
These two can be explained as follows :-
1. Monetary policy refers to the decisions taken by the govt. to stabilize economy by adjusting the interest rates on short term borrowings or by changing the supply of money in the economy as per the need.
2. Whereas in fiscal policy federal govt. use tax collection and expenditure control for coping with depression or recession.
