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2 years ago

Estimate the opportunity cost of increasing shoe production from Point A 2 points

Business

1 answer:

azamat2 years ago

6 0

Answer:

why do you even care about doing your homework i donk care about school thats why i have all fs

Explanation:

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A company is considering an iron ore extraction project that requires an initial investment of and will yield annual cash inflow

Murrr4er [49]

Answer: D. 15%

Explanation:

The IRR is the discount rate that will make the Net Present Value to be 0.

In other words, the IRR is the discount rate that will make the cash inflow from the investment to be equal to the investment amount.

As the cashflow is constant, it is an annuity and so can be calculated by the Present Value Interest Factor.

Investment cost = $1,100,000

Using the options given;

Discount rate - 14%

Present Value of Cash inflow = 676,507 * Present Value of Annuity factor, 14%, 2 years

= 676,507 * 1.647

= $1,114,207.029‬

1,114,207.029‬ ≠ 1,100,000

Discount rate - 15%

Present Value of Cash inflow = 676,507 * Present Value of Annuity factor, 15%, 2 years

= 676,507 * 1.626

= $1,100,000.382‬

= $1,100,000‬

IRR is 15% as Present value of Cash inflow is equal to Investment cost at a discount rate of 15%.

8 0

2 years ago

When Argentina fixed the exchange rate of their peso to the U.S. dollar, one outcome was: Group of answer choices Argentinean ce

MariettaO [177]

Answer: Argentinean central bankers effectively gave control of their domestic interest rate to the FOMC.

Explanation:

The Federal Open Market Committee(FOMC) is a committee of the Federal Reserve which influences the interest rate in the country by engaging in Open Market Operations (OMO). In doing so, they also influence the value of the dollar which is the currency of the U.S.

By pegging the Argentine Peso to the U.S. dollar, the Argentines effectively gave control of their domestic interest rate to the FOMC because the FOMC in deciding the interest rate for the U.S. and therefore the dollar, will be deciding for any other currency that moves exactly as the dollar does which is what the Peso is now going to do.

8 0

2 years ago

Alicia believes that an employee's perception of a situation determines his or her relationship with other members. she also bel

Lunna [17]

Alicia’s views are similar to symbolic interactionists. Symbolic interactionism is a sociological theory that states that how an individual engages with symbols explain the behavior that they are exhibiting.

This perspective believes that how an individual interacts with other individual in a group explains best the structure that underlies the group itself. We can see that Alicia subscribes to this point-of-view from how she believes that an employee’s understanding of a situation reflects how she or her engages with other members’ of the company.

3 0

2 years ago

Here is a riddle

mart [117]

Answer:

he doesnt have any hair??

Explanation:

loll im kind of dumb sorry if i got it wrong

5 0

2 years ago

Read 2 more answers

A beach house in Southern California now costs $350,000. Inflation is expected to cause this price to increase at 5 percent per

jekas [21]

Answer:

Annual deposit= $7,648.27

Explanation:

Giving the following information:

A beach house in Southern California now costs $350,000.

Inflation rate= 5% per year

Interest rate= 13% annual

Number of years= 20

We need to find an annual payment to be made at the end of each year to reach the $350,000 goal.

We need to use the following formula of the future value:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

Real interest rate= 0.13 - 0.05= 008

A= (350,000*0.08) / [(1.08^20) - 1]= $7,648.27

4 0

3 years ago