Answer:
Instructions are listed below
Explanation:
Giving the following information:
Projects:
A
Io= -$ 800,000
Perpetual cash= $ 90,000
B
Io= 100,000
Perpetual cash flow= 20,000
C
Io= 300,000
Perpetual CF= 25,000
D
Io= 400,000
Perpetual CF= 60,000
To find the present value of a perpetual annuity we need to use the following information:
PV= cash flow/i
A) i= 0.16
A= -800000 + (90000/0.16)= -237,500
B= -100000 + (20000/0.16)= 25,000
C= -300000 + (25000/0.16)= -143,750
D= -400000 + (60000/0.16)= -25000
Only project B is pursuable.
B) i=10%
A= 100,000
B= 100,000
C= -50,000
D= 200,000
Only project C is not pursuable. Project D has the greatest net present value.
C) With i=16% only project B should be pursued. With i=10%, project D is the best.
I believe the answer to this question is : False
Answer:
Inventory Turnover Ratio for 2008= 3.223 Times
Inventory Turnover Ratio for 2009= 3.91 times
Explanation:
Inventory Turnover Ratio= Cost of Goods Sold / Average Inventories
Inventory Turnover Ratio for 2008= $632,000/ $201,000
+ 191,100/2
Inventory Turnover Ratio for 2008= $632,000/196,050
Inventory Turnover Ratio for 2008= 3.223 times
Inventory Turnover Ratio for 2009= $ 731,000/191,100
+ 182,600/2
Inventory Turnover Ratio for 2009= $ 731,000/ 186,850
Inventory Turnover Ratio for 2009= 3.91 times
If the government wants to expand aggregate demand, it can "rebate" government purchases or "cut" taxes.
<h3>What is aggregate demand?</h3>
The total quantity of demand for all finished products and services generated in an economy is measured as aggregate demand.
Some characteristics of aggregate demand are-
- The total amount of money spent on those goods and services at a particular price level and time is known as aggregate demand.
- The correlation between output and all prices can be seen on an aggregate demand curve.
- In the end, the aggregate demand curve slopes downward because it predicts a fall in real gross domestic product (GDP) as prices rise.
- Consumer spending, investment spending, government spending, and the difference between exports and imports are all added together to determine aggregate demand.
- When one of these variables changes but the overall supply stays unchanged, aggregate demand will alter.
To know more about the aggregate demand and aggregate supply model, here
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