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Anna11 [10]
3 years ago
15

_____ is the rate that causes the present value of all cash flows from a property (including its resale value) to be equal to th

e original purchase price of the property.
a) IRR
b) NPV
c) TWR
d) TVM
Business
1 answer:
Alja [10]3 years ago
5 0

Answer:

a) IRR

Explanation:

The internal rate of return is the rate of return at which the net present value is zero

The net present value means the difference between the present value of all cash inflows after discounted and the initial investment

Therefore when the above two things are equivalent to each other so this we called as internal rate of return (IRR)

hence, the correct option is a.

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Sladkaya [172]
<span>This means that there were customers that were wanting the Disney channel, but did not get it because it was too expensive. Once the price went down these customers bought the service. The cable company test showed that they should keep their prices for the Disney channel low to generate more revenue. Even if they only had one customer to begin with they would only be making $10.75, and when they lowed their prices they would be making at least $15.90.</span>
8 0
4 years ago
The one-year interest rate over the next three years is expected to be 3.00%, 5.00% 8.00%. The liquidity premium for one- to thr
DENIUS [597]

Answer:

6%

Explanation:

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed. The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited or borrowed.

Solution

interest rate on 3-year bond

Interest rate = [{(1 + 3%) × (1 + 5%) × (1 + 8%)} ^ (1 / 3) - 1] + 0.75%

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Interest rate = (1.0525- 1) + 0.75%

Interest rate = 0.0525 + 0.0075%

Interest rate = 0.06 OR 6%

6 0
3 years ago
Consider a stock priced at $30 with a standard deviation of 0.3. The risk-free rate is 0.05. There are put and call options avai
Elza [17]

Answer:

-$11

Explanation:

Covered Call involves Buy stocks and Sell call options

Earning $2.89 by selling call. So, at  stock price of $27, the payoff from options is $2.89 per option

Options Profits = $2.89 * 100

Options Profits = $289

Profit of stock = ($27 - $30) * 100

Profit of stock = -$300

Investor Net Profit = Profit of stock + Options Profits

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Investor Net Profit = -$11

6 0
3 years ago
How does manufacturing create the multiplier effect?
MrRissso [65]

Answer:

For every $1.00 spent in manufacturing, another $2.79 is added to the economy

Explanation:

hope this helps

4 0
2 years ago
Andreas is a political consultant with his own firm. he travels the country and provides campaign advice for political candidate
Rus_ich [418]

Bills accounting profit is equals to revenue ($250,000) minus explicit (monetary) cost (50,000 and 30,000), while his economic profit is equals to accounting profit minus implicit (opportunity) cost (3,000 and 100,000). Accounting profit is $170,000 and Economic profit is $67,000.

<span>Economic profit is always lower than accounting profit because explicit costs and implicit costs are both deducted to revenue. Implicit costs are cost that he should have earned if he gives up his present resources. These costs are projected cost and are not yet incurred.</span>

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3 years ago
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