Answer:
A) the firm should hire additional workers.
Explanation:
if the marginal production of the tenth worker is 5 units or output and the price of each unit is $4, the the workers total marginal product revenue (MPR) = 5 units x $4 per unit = $20
Since the cost of hiring that tenth worker is $15 (less than MPR), then the company should hire more additional workers until the MRP = labor cost
Answer:
B) The amount that would be paid today in order to receive a series of equal payments in the future
Explanation:
Present value of a cashflow by itself is its dollar value today. An Ordinary annuity is a series of recurring equal cashflows ; they occur at the end of each period like at the end of the year, end of the month, end of each quarter etc. This is unlike an Annuity due whose recurring payments occur at the beginning of each period like beginning of the year, beginning of the month, beginning of each quarter etc.
Answer:
b. 3.4 years
Explanation:
The formula to compute the payback period is shown below:
= Initial investment ÷ Net cash flow
where,
Initial investment is $379,000
And, the net cash flow = annual net operating income + depreciation expenses
= $57,000 + $53,000
= $110,000
Now put these values to the above formula
So, the value would equal to
= ($379,000) ÷ ($110,000)
= 3.4 years
Answer:
So yield to maturity will be 11.1 %
Explanation:
We have given final value FV = $1000
Current price = $900
Time is given t = 1 year
We have to find the rate of interest
Future value is given by
, here A is future value and P is current price
So
r = 11.1 %