Answer:
Option e is the correct answer.
As the NPV of project 1 is higher than Project 2's NPV, Project 1 is recommended,
Explanation:
To determine which project to choose, we will calculate the net present value (NPV) of both projects and the project with the higher NPV will be chosen.
NPV is the present value of the future cash flows inflows expected from the project less any initial cost. The formula for NPV is as follows,
NPV = CF1 / (1+WACC) + CF2 / (1+WACC)^2 + ... + CFn / (1+WACC)^n - Initial outlay
Where,
- CF1, CF2,... is the cash flow in year 1, Year 2 and so on
NPV - Project 1 = 60 / (1+0.1) + 60 / (1+0.1)^2 + 60 / (1+0.1)^3 +
220 / (1+0.1)^4 + 220 / (1+0.1)^5 - 200
NPV - Project 1 = $236.076 rounded off to $236.08
NPV - Project 22 = 300 / (1+0.1) + 300 / (1+0.1)^2 + 100 / (1+0.1)^3 +
100 / (1+0.1)^4 + 100 / (1+0.1)^5 - 600
NPV - Project 2 = $126.1861 rounded off to $126.19
As the NPV of project 1 is higher than Project 2's NPV, Project 1 is recommended,
Answer:
The collection is worth $37,525.78.
Explanation:
Giving the following information:
Your coin collection contains 59 1952 silver dollars.
Interest rate= 6.6%
Number of years= 2053 - 1952= 101 years
To calculate the value of the collection today, we need to use the following formula:
FV= PV*(1+i)^n
FV= 59*(1.066^101)
FV= $37,525.78
Answer: the producer will charge a price that is more than $3.
Explanation:
Monopolistic competition is an industry characteristics whereby there are several firms that sell goods or services that can't be called perfect substitute but are identical.
Based on the above information, since marginal revenue and marginal cost equals $3, the producer will charge a price that is more than $3. This is necessary to cover up its cost.
Answer:E) getting a loan or selling corporate bonds
B - because primary research is research done by the person collecting the data, it provide feedback which would be directly related to it's subject - in this case it's needs.