The 4-year term instrument's nominal rate is higher than the 2-year term instrument's nominal rate.
What is nominal rate?
The increase in payment you make to the lender for using the borrowed funds is known as the nominal interest rate.
The rate of compounding is higher for 2-year investments than for 4-year investments, which are compounded semi-annually.
As a result, option (b) is correct.
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Answer:
D. The marginal benefit from reducing another ton of pollution should be equal to the marginal cost.
Explanation:
The benefit arises when the cost is fully recovered, as in the given case the marginal cost for each ton reducing the pollution shall be equal to the benefit of marginal ton of pollution reduced.
Whenever, marginal cost is less than the benefit it is favorable but it is not permanent and thus, not valid, in case the cost is equal to the befit it is at break-even and is beneficial in every situation for the economy and environment.
Answer:
0.010 level of significance = z value of -2.33
41,500-47,500/(10,600/3.1)= -1.754
Z value is less than -2.33 which means that there is not enough evidence to conclude that residents of wilmington have more income than the national average at significance level of 0.010
Explanation:
Answer:
E. $63,401
Explanation:
gain on disposal = salvage value of plant - book value on date of sale
= $5,790 - $4,820
= $970
tax on disposal = $970*35%
= $339.50
after tax salvage value = $5,790 - $339.50
= $5,450.50
total cash flow in 4 years
= annual operating cash flow + net working capital + after tax salvage value
= $53,500 + $4,450 + $5,450.50
= $63,401
Therefore, The Year 4 cash flow is $63,401.
<span>In this case the opportunity cost is $30. Opportunity cost is the cost of forgoing the best available alternative for making a particular choice. In this case, the best alternative to Lewis family gift is the gift offered by Gilbert family and hence the opportunity cost is $30 which is the price of the gift offered by Gilbert.</span>