The internal rate of return (IRR) is the interest rate that sets the net present value (NPV) of the cash flows equal to zero Select one: O True O False
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A: True
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A: Rate of return is a certain percentage of income from an investment.
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A:
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- 3. Sam works for Engineering Enterprises, and he is trying to analyze his cash flow throughout the following time period: Cash flows in year 1 -4 have been at a steady $1M/year. However due to the COVID pandemic in year 5 the company had to completely shut down its operations for a year. In year 6 the company was able to maintain the revenue of $1M, however there was a 15% decline in sales in the following periods. a) Draw the cash flow diagram b) Based on PW analysis and an interest rate of 5%, overall, how did the company perform during the 8-year study period? c) Convert your answer to AW based on your answer from part b)10:42 İQIY we.l il, 63% iז Vo) LTE2 Discussions Difference between nominal and effective rates of interest ? What is the difference between Nominal Rate and Effective Rate of Interest? Is 10% per year compounded quarterly a nominal rate of interest? Reply Replies are only visible to those who have posted at least one reply. Module 4 - Nominal and Effective Interest RatesThe present value of a fixed-payment loan is calculated as the, all cash flow payments. of the present value of Select one: O a. log b. sum c. multiple d. difference
- How long it will take for the cost of the investment to be recovered from its benefits is referred to as profitability. O True O FalceConsider a individual who currently earns $20,000 as an unskilled laborer. Suppose that by ttaking courses full time at a communit college for one year, the person can qualify for a more skilled job paying $23,000 that is guaranteed to last for 10 years (after which the person wuld retire). Assume the costt of tuition and books at the community college for one year is $2,000 and that the current interest rate is 6%. Is this a good investment?A simple economy produces only lumber, granola bars, and computers. Annual production of these goods for 3 years are shown below along with their prices. If 2020 is the base year, the value of 2021 production in constant dollars is $ _ Don't include $ or any commas or spaces in your answer. Copyrighted material - not to be shared. 2019 2020 2021 Production of lumber (units) Price of lumber ($ per unit) Production of granola bars (units) Price of granola bars ($ per unit) Production of computers (units) Price of computers ($ per unit) 100 120 130 100 120 125 500 600 650 2 2.50 3 50 40 50 300 320 350
- Exercise 1: • Assume we are selling a product for $2 each. • Assume that the variable cost associated with producing and selling the product is 60 cents. • Assume that the fixed cost related to the product (the basic costs that are incurred in operating the business even if no product is produced) is $1000. What is the BEP?- 16 (10%) (page 2 of 3)- Google Chrome urses.open.uwi.edu/mod/quiz/attempt.php?attempt3D43724&cmid3D461748&page=D1 Exchange 2020 12015 Mathematical Methods of Economics I | S2 20 Ensure that you show ALL workings. Graphs NOT required. n tyn- A company produces two types of can openers: Model I and Model 2. Each require the use of three machines: A, B and C. Model I requires 2 hours on machine A, 1 hour on machine B and 1 hour on machine C. Model II requires 1 hour on machine A, 2 hours on machine B and 1 hour on machine C.The maximum number of hours available for machine A, B and C are 180, 160 and 100 respectively. The profit on Model I is $4 and Model Il is $6. on Write down the LP model. Identify the coordinates of the extreme points of the feasible region. Paragraph -BIEE W 99+The board of your company discusses a possible future price increase of 20% for one of the products. The argument against the increase is a decrease in sales due to the increased price. With how many units (pieces), sales can fall, without changing the total gross margin, with the following data for your company.Current sales price per piece SEK 600Variable costs per piece SEK 450Current sales volume 10,000 pieces
- Question 5 mr.Rahim is plaining to pursue MBA studies.initail inquiry shows that he will have to pay RM 25,000 as tuition fee,buy books for RM1,000,and pay for transport RM 1,000.The MBA study programme will extend over 15 months.Mr.Rahim is working now with a salary of RM2,500 per month.Being a full time student,he will have to forego the income from his present job for the period of study. work out: (a) financial cost (b) Economic cost of doing MBA.Suppose Latasha is a cinephile and buys only movie tickets. Latasha deposits $3,000 in a bank account that pays an annual nominal interest rate of 5%. Assume this interest rate is fixed—that is, it won't change over time. At the time of her deposit, a movie ticket is priced at $10.00. Initially, the purchasing power of Latasha's $3,000 deposit is_______ movie tickets. For each of the annual inflation rates given in the following table, first determine the new price of a movie ticket, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Latasha's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest movie ticket. For example, if you find that the deposit will cover 20.7 movie tickets, you would round the purchasing power down to 20 movie tickets under the…Homework (Ch 01) Store Local Shoe Store Different Neighborhood in Town Rural Outlet Travel Time Each Way (Minutes) 15 30 60 Price of a Boots (Dollars per boots) 115 98 75 Juanita earns an hourly wage of $20 at her job. In order to purchase her boots she will have to take time off work, so each hour away from her job costs her $20 in lost income. Assume that Juanita's travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Juanita incurs no additional costs other than the boots, such as gas. Store Local Shoe Store Different Neighborhood in Town Rural Outlet Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location." Opportunity Cost of Time (Dollars) Price of a Boots (Dollars per boots) 115 Total Cost (Dollars) 98 75 Assume that Juanita considers both her opportunity costs and the price of…