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Sunny_sXe [5.5K]
3 years ago
8

Labeau Products, Ltd., of Perth, Australia, has $21,000 to invest. The company is trying to decide between two alternative uses

for the funds as follows:
Invest in Invest in
Project X Project Y
Investment required $ 21,000 $ 21,000
Annual cash inflows $ 8,000
Single cash inflow at the end of 6 years $50,000
Life of the project 6 years 6 years
The company’s discount rate is 18%.
Required:
Determine the net present values. (Any cash outflows should be indicated by a minus sign.
Business
1 answer:
VLD [36.1K]3 years ago
7 0

Answer:

Project X = $6,980.82

Project Y = - $2,478.42

Explanation:

The Present value is the price today of future cash flows and is calculated as follows :

Project X

($21,000) CF 0

$8,000    CF 1

$8,000    CF 2

$8,000    CF 3

$8,000    CF 4

$8,000    CF 5

$8,000    CF 6

I/YR = 18%

Therefore, NPV is $6,980.82

Project Y

($21,000) CF 0

$0    CF 1

$0    CF 2

$0    CF 3

$0    CF 4

$0    CF 5

$50,000    CF 6

I/YR = 18%

Therefore, NPV is - $2,478.42

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Answer:

The factors she could consider when choosing a certificate of deposit is explained below in detail.

Explanation:

A higher principal should/may obtain a greater interest rate.

A longer-term normally receives a greater interest rate, except in the matter of a modified yield curve.

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Assume that the marginal propensity to consume is 0.8 and that potential output is $800 billion. If real GDP is $850 billion, to
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The following policies would bring the economy to potential output is Decrease government spending by $10 billion.

<h3>What is Marginal Propensity?</h3>

The "Marginal Propensity" to consume is defined as calculate quantification of money that consumers are ready to spend.

The term "Marginal propensity" to consume is term used in economics. It measures monetary value which consumer is willing to spend to buy goods and services instead of saving it.

The "Marginal Propensity" to consume tends to increase economic activities of country by keeping cash flowing and by not keeping it stagnant. It also helps in increasing trade value and quality and cost of products because it increases healthy competition among companies and in which consumers are ultimately benefitted.

Therefore , we can conclude that the correct option is C.

Learn more about Marginal propensity on:

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7 0
2 years ago
which of the following is an example of indirect cost that a sourcer must consider? group of answer choices sample shipping cost
lesya692 [45]

All of the above (Cost of switching factories due to a violation of social compliance, and Travel cost to ensure delivery and quality)

<h3>What is indirect cost?</h3>

Indirect costs are business expenses that aren't immediately associated with a specific grant, contract, project function, or activity but are nonetheless important for the organization's overall operation and the performance of its activities.

When reviewing your financial statistics, you should keep in mind that staff salaries are an indirect cost. Even while it's inevitable that your staff will change, you want to keep onto the people that make your business profitable and useful to your clients.

Although fixed and variable costs have different effects on the business, both are crucial to its profitability.

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Answer:

The answer is: All of the options are correct

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The Capital Asset Pricing Model (CAPM) states that a stock's rate of return is the sum of the risk free rate plus a risk premium. The advantage of the CAPM model is its simplicity, and that it can be used for every type of stocks.

In a simple CAPM world investors would operate the same way as they do now; They will hold investments portfolios that include risky assets; The investor's risk aversion should determine what stocks make up the portfolio; Risk returns should follow the same pattern; Investor will try to make their portfolios be as efficient and profitable as possible.

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Ficus, Inc. began business on March 1, 2018, and elected to file its income tax return on a calendar-year basis. The corporation
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Answer:

c. $44.44

Explanation:

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The 10 months is calculated from March 1 to December 31. As we assume the books are closed on December 31

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