Answer:
The project A has a smaller IRR, and the project B is more attractive
Explanation:
Solution
Solve for Project A:
Now,
Let assume that the IRR be x
Hence,
The Present Value of Outflows of Cash Outflows= The Present Value of Inflows of Cash
Thus,
2000 =500/(1.0x) +500/ (1.0x)^2 +1200/(1.0x)^3
Or we say x= 4.223%
Therefore the IRR is 4.223%
For project B:
Let assume that the IRR be y.
Thus,
The Present Value of Outflow of Cash = The Present Value of Inflow of Cash
so,
2000 =600/(1.0y) + 600/ (1.0y)^2 + 1000/(1.0y)^3
Or we say, y= 4.498%
Therefore the IRR is 4.498%
Answer:
Mobile Applications and Smart Phones are Complements
Smart Phones and Conventional Phones are Substitutes
Mobile Applications and Conventional Phones are substitutes.
Explanation:
Complement goods are goods that can be used or consumed together. E.g. car and gas. A car would not work without gas. A rise in price of a good leads to a fall in demand of the complement good.
Subsituite goods rival one another in consumption. They can be used in place of another good.
A rise in price of a good leads to a rise in demand of the other good.
I hope my answer helps you
Answer:
Explanation:
Nokia is trading in US at $ 7.18 per share and at € 6.08 on Helsinki stock exchange.
Law of one price - Price of Nokia must be the same in both the countries. So current exchange rate is $7.18/€6.08 = $1.18/€
The rate of interest charged to Glenda would be 5.18% upon the payment of her car in five annual installments.
<h3>What is a rate of interest?</h3>
The percentage of interest charged over the principal amount of loan or advances for a particular period of time, is known as the rate of interest of such loan.
The computation of rate of interest using the formula and given information will be,
Hence, the computation of the rate of interest is as aforementioned.
Learn more about rate of interest here:
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The disadvantages of a modern office are that employees can be very distracted on a multitude of levels. The internet is one way an employee can be distracted, also the fact that cellular phones are so easily accessible and social media.
