Answer:
hi im just getting my points
Explanation:
and im good btw
Hi!
The answer to your question should be B. Pays the difference of the current value to the amount you owe.
Answer:
The firm shouldn't purchase the machine because the IRR is less than the required minimum
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 using a financial calcuator
Cash flow in year 0 = $-1.25 million.
Cash flow in year 1 = $210,000
Cash flow in year 2 to 5 = $350,000
IRR = 8.51%
The firm shouldn't purchase the machine because the IRR is less than the required minimum
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:
In other words, if Neha decides to keep the $300 for a cell phone and Teresa decides to contribute the $300 to the public project, then Neha would receive a total benefit of:
$570.
Explanation:
Neha has, in this situation, maximized his benefits to the detriment of the public good. This is an illustration of the tragedy of the commons. The tragedy of the common is an economic problem that explains the loss that the society incurs when some persons like Neha neglect to contribute to the common good because they are solely concentrated on pursuing their individual goals for personal gains.
Answer:
A. -$272,638
Explanation:
Firstly, we need to calculate the total present value of initial investment plus all operating cost of the project. Then we will use that amount to solve for equal-amount annual operating cost.
Total present value of the project is -689,000 - 41,000/(1+13%) - 41,000/(1+13%)^2 + ... + 41,000/(1+13%)^4, or -810,953.32 (negative sign mean cost).
So, the equivalent annual cost of an oven is -272,638.
The equation solving problem can be made easily using Excel or BA II plus calculator.