Answer:
$30
Explanation:
total investments in the economy are:
- $0 that yield an expected rate of return of 25% or more
- $15 that yield an expected rate of return of 20 - 25%
- $15 that yield an expected rate of return of 15 - 20%
- $15 that yield an expected rate of return of 10 - 15%
- $15 that yield an expected rate of return of 5 - 10%
- $15 that yield an expected rate of return of 0 - 5%
If the real interest rate is 15%, then only projects that will yield 15% or more will be carried out and those are worth $15 (yield expected rate of return of 20-25%) + $15 (yield expected rate of return of 15-20%) = $30
Answer:
B) Accept Project A and reject Project B.
Explanation:
We use excel or a spreadsheet to calculate this ratio.
See document attached.
Cash flow will solve this problem.
At moment 0 we have the investment cost or initial cost, in this case $125,000 or $135,000. From period 1 to period 3, we have different incomes. Then, we calculate the Net cash flow that is the difference between benefits and cost.
We use all the result (positive and negative) in Net cash flow to get the IRR.
<u>Project A</u>
Internal Rate of Return (IRR) 18,86%
<u>Project B</u>
Internal Rate of Return (IRR) 13,78%
So we should accept Project A and reject Project B, because in project A the IRR is bigger of required return ( 16%), we reject project B because the IRR is smaller.
America's national debt is the amount that is due to the federal government of America. The portion of the public debt is the price of the dominant Treasury securities at a part of time that has been announced by the Treasury and also with other federal government agencies.
<h2>Cost:</h2>
Costs are the expenses incurred by a company or an individual in<u> order to</u> produce goods and deliver services or buy products.
<h3>The computation:</h3>
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Therefore, the birthday party will cost $97.5 if 15 guests are<u> invited.</u>
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For more information regarding the sums, refer below:
brainly.com/question/14107176
