Answer:
The answer is the internal rate of return on this investment is 10%.
Explanation:
The internal rate of return is the discount rate bringing the present value of the perpetual stream of cash inflows equal to its initial investment which is $210.
We apply the formula for calculating the present value of growing perpetuity to find out the internal rate of return, which is denoted as X in the below equation:
10.5/ ( X - 5%) = 210 <=> X - 5% = 10.5 / 210 = 5% <=> X = 5% + 5% = 10%.
So, the internal rate of return on this investment is 10%.
Answer:
(B) increase; appreciate.
Explanation:
A large increase in the income level in the U.S. along with no growth in Mexico’s income level is normally expected to cause (assuming no change in interest rates or other factors) a(n) INCREASE in U.S. demand for Mexico’s goods, and the Mexican peso should APPRECIATE.
Because the large increase in the income level in the U.S will result to an increase in U.S demand. And consequently, the Mexican peso would appreciate. Appreciation, in general terms, is an increase in the value of an asset over time and one of reasons this increase can occur is increased demand.
I don’t know why. I don’t know that answer sorry.
Answer:
1. $97,500
2. 40.9%
3. $24,375
4. 14.77%
Explanation:
<u>Given the following data;</u>
Amount of money owned (Savings account) = $67,500
Total amount required = $165,000
To find the amount needed from investors to start the business;
Let the balance = X
Substituting into the equation, we have;
X = $97,500
To find the percentage of ownership;
Percent ownership = savings/total * 100
Substituting the values into the equation;
Percent ownership = 40.9%
To find the amount to be invested by each of the four investors;
Investor = X/4
Substituting into the equation, we have
Investor = 97500/4
Investor = $24,375
Therefore, each of the investors will need to invest $24,375.
Percentage for each investor;
Percent = 14.77%
John wants something from Jane but he will not give it.