The market is voluntary operated by the model mf supply and demand
Answer:
b. NPV < 0
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
The decision rule is invest if IRR > required rate of return and don't invest if IRR < required rate of return.
The net present value is the present value of after tax cash flows from an investment less the amount invested.
The decision rule is invest if NPV > 0 and don't invest otherwise.
The payback period measures how long it takes to recover the amount invested in a project from its cumulative cash flows.
There is no set acceptable pay back period. It is usually set at the discretion of firms.
The profitability index is the present value of a projects cash flows divided by the cost of investment.
The decision rule is invest if PI > 1 and don't if its otherwise.
For a project where the initial cash flow is negative and where all subsequent cash flows are positive, the NPV and IRR would agree.
From the question the IRR is less than the required rate of return which means the project shouldn't be embarked on. When the NPV is calculated, the same conclusion should be reached. So, the npv should be less than zero.
I hope my answer helps you
Answer:
$2,500
Explanation:
since Sherry will receive at least $10,000 or 25% of the partnership's net income, then the guaranteed payment = $10,000 - ($30,000 x 25%) = $10,000 - $7,500 = $2,500
When partnerships include guaranteed minimum payments, he/she will receive that amount even if the partnership's net income is not high enough. If the partnership's net income would have been $40,000 or more, then there would be no guaranteed payment (= $40,000 x 25% = $10,000).
Answer:
i believe the answer would be b
Explanation:
if its life insurance that's something that people have just i case something happens to them that way their family would still be taken care of. hope this helps!
