You have been offered a very long-term investment opportunity to increase your money one hundredfold. You can invest $600 today and expect to receive $60,000 in 40 years. Your cost of capital for this (very risky) opportunity is 18%. What does the IRR rule say about whether the investment should be undertaken? What about the NPV rule? Do they agree?
Answers
The IRR rule and NPV rule do not agree in this scenario. The IRR (22.77%) exceeds the cost of capital (18%), indicating that the investment should be undertaken according to the IRR rule.
The IRR (Internal Rate of Return) rule states that an investment should be undertaken if the internal rate of return exceeds the cost of capital.
The NPV (Net Present Value) rule states that an investment should be undertaken if the net present value is positive.
To determine whether the investment should be undertaken, we can calculate the IRR and NPV:
IRR: The IRR is the discount rate that makes the present value of the investment's cash flows equal to the initial investment. In this case, the IRR would need to be greater than 18% for the investment to be undertaken.
NPV: The NPV is the difference between the present value of the investment's cash flows and the initial investment. We calculate the NPV using the cost of capital (18%) as the discount rate.
Using the given information, the calculations are as follows:
NPV = -600 + (60,000 / (1 + 0.18)⁴⁰) ≈ -600 + 3,146.89 ≈ 2,546.89
Since the NPV is positive (2,546.89), the NPV rule suggests that the investment should be undertaken.
To determine the IRR, we can use a financial calculator or software. In this case, the IRR is approximately 22.77%.
However, the NPV rule suggests that the investment should not be undertaken due to a negative NPV.
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Related Questions
When customers look beyond their personal knowledge and experience to help them in buying something, they are engaging in: o ritual consumption o external information search. o cognitive dissonance o business-to-business marketing o self-actalization
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when the consumers want to buy something but don't have any knowledge regarding the product, they opt for different external sources. the different sources like advertisements, internet search, etc., helps to provide the consumer with relevant information to make a purchase. this is known as external information search.
External information search refers to the process of seeking out information from sources outside of oneself to make informed purchasing decisions.
When customers look beyond their personal knowledge and experience to help them in buying something, they are engaging in external information search. This refers to the process of seeking out information from sources outside of oneself to gather relevant knowledge and make informed purchasing decisions.
For example, a customer might read product reviews, compare prices, or ask friends for recommendations before making a purchase.
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Which of the following examples demonstrate education and qualifications that are most helpful for Energy
Generation careers? Check all that apply.
Lorena can work for long hours in challenging conditions.
Vaughn is creative in thinking of new ways to harvest materials from the ground.
Richelle is a Hydroelectric Production Manager with a bachelor's degree.
Georgiana is a Loading Machine Operator with a master's degree.
Nolan is good at persuading customers to purchase products.
Randy knows how to operate a cash register to process customer payments.
Answers
Answer:
Lorena can work for long hours in challenging conditions.
Vaughn is creative in thinking of new ways to harvest materials from the ground.
Richelle is a Hydroelectric Production Manager with a bachelor’s degree.
Energy is referred to as the capability or the capacity to work that is acquired only when the individual has some knowledge about the task that has to be performed.
The correct options are:
Lorena can work for long hours in challenging conditions. Vaughn is creative in thinking of new ways to harvest materials from the ground. Richelle is a Hydroelectric Production Manager with a bachelor’s degree.These options best illustrate the education and qualification that is very and utmost useful for energy. The energy here means the growth and development of the individual. This is only possible when the person carries some of the education and the qualification in his hands to stand in the crowd with confidence and clarity in the performance.
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a production possibilities frontier separates an attainable region from an unattainable region.
t
f
Answers
T - A production possibilities frontier (PPF) represents the maximum combination of goods and services that can be produced within an economy, given its resources and technology.
It separates the attainable region, where efficient production is possible, from the unattainable region, where production is currently not feasible with the available resources and technology. The PPF shows the trade-offs and opportunity costs associated with producing different combinations of goods and services, highlighting the limits of production within an economy. A production possibilities frontier (PPF) is a graphical representation of the maximum output possibilities of two goods or services that an economy can achieve, given its resources and technology. It shows the different combinations of goods or services that can be produced efficiently, given the available resources and technology.
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1. What are the problems/challenges encountered by Nanay Coring in her business? 2. What alternatives did Nanay Coring take when the business encountered problem? 3. What were the business opportunities she selected?
Answers
Explanation:
1. The problems/challenges encountered by Nanay Coring in her business includes;
the Japanese who took over Philipines destroyed books they found in their bookstore which they did not like.the American war which drove the Japanese from the Philipines led to the store been destroyeda typhoon damaged the store unexpectedly, resulting in relocation.2 & 3.
according to Nanay Coring, they had to switch to selling candies, soap, slippers, papers, and cigarettes as this was demanded by the Japanese soldiers frequently.they also spent longer working hours.Everyone calls her "Nanay Coring," and she is Young's 2004 Entrepreneur of the Year-Philippines award and recipient of Ernst, which has been nicknamed the "Oscar" of the corporate environment. She founded the National Book Store) chain of bookstores.
1. The problems:
The heavy volumes thinned out. We didn't exhibit the books any longer because mathematics books were virtually the only ones preserved. A typhoon soaked all of their stock and blew the roof off of their small business.
2. When a problem arises in the business, Nanay Coring can attempt another business that is currently popular. Modify her business's appearance. She's found someone who is willing to invest in her company. Make her business more appealing to the eye, but the buyer should understand that purchasing her problem or trying her service is worthwhile.
3. Business opportunities:
Nanay Coring first demonstrated her financial acumen with this summer employment.
She worked at a cigarette factory, where she was paid five centavos every pack for removing rotting tobacco and keeping the rest of the cigarette filler.
"At the time, that was a lot of money because the conversion rate was P2 to $1."
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Why is it important to write a zero-based budget every month?
Answers
Answer:
It is important to write a zero-based budget every month because the zero-based budget ensures that every dollar you make is assigned a specific purpose.
Explanation:
What information does a person need to know before renting an apartment?
O The salaries earned by the building employees.
O If electricity is included in the rent of the apartment.
O The property taxes on the building that are paid by the owner.
o If the apartment building has a mortgage.
Answers
Answer:2
Explanation:
2
give me some solutions for ups and please read the articles in ordered to do that & I’ll remark u as brainliest
Answers
The first element as per the order of the article be 'The Heading'. The 2d component as per the order of the article must be 'The Name Of The Writer'. The 1/3 aspect as per the order of the article must be 'Introduction'.
Which article used before order?As usual, the precise article "the" is used where the object is recognised information. I would assume "an order" here. If you say "the order", this implies that the recipient already is aware of which order you mean: presumably you have beforehand discussed it.
Does the order of articles in a journal matter?Although an creator list should solely mirror those who have made enormous contributions to a research mission and its draft manuscript (see, for example, the authorship recommendations of the International Committee of Medical Journal Editors), we might be remiss to say that writer order does not matter.
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What is the term for any communication method or platform a business can use to reach their target audience online? O Digital channel Target strategy E-commerce Online sales 2. What is the practice of reaching consumers online through digital channels with the aim of turning them into customers? Face-to-face marketing Digital marketing E-commerce Online sales 3. With digital marketing, potential customers can take an action the moment they experience the ad. Which advantage of digital marketing does this represent? O You can build relationships with customers. It is more cost-effective. You can reach more people. You get faster results. 4. Which of the following statements regarding working in a marketing career is generally true? O Specializing in a marketing field that aligns with your strengths is not recommended. You are typically responsible for a wider range of marketing tasks in a large business than a small business. O Marketing coordinators' tasks at a company are often disconnected and unrelated. A digital marketing coordinator and e-commerce analyst often share similar skills. 5. Which of the following best describes the skill of storytelling as a digital marketer or e-commerce analyst? O Seek out answers about people-what they want, how they think, and what motivates them to take action. O Communicate data insights effectively to engage an audience. O Collect and organize information to spot patterns, uncover trends, and solve problems. Use data insights to adapt to new situations. 6. Which of the following best describes a portfolio? It contains letters of recommendation from past employers. O It contains your samples of past work and demonstrates relevant work experience. It contains your previous job titles and descriptions chronologically. OIt contains a letter outlining your credentials and interest in a job. O O O O O 7. Which of the following roles is when you work for a single company to market and sell their products? Internship In-house Staffing firm Agency 8. Fill in the blank: role is when you partner with companies to fill their digital marketing and advertising needs. A full-time employment An internship An in-house An agency 9. Coordinating marketing activities, preparing reports on marketing metrics, and creating customer personas are tasks typical for which digital marketing role level? Account manager-level roles Strategist-level roles Associate-level roles Product manager-level roles 10. Which of the following are typically job responsibilities for an e-commerce analyst? Select all that apply. Confirm customer interactions align with business objectives. Facilitate a website purchase. Edit content on a brand's website. Ensure email ads generate desired results on a website.
Answers
1. The term for any communication method or platform a business can use to reach their target audience online is digital channel.2. The practice of reaching consumers online through digital channels with the aim of turning them into customers is digital marketing.
3. The advantage of digital marketing that represents the fact that potential customers can take an action the moment they experience the ad is that you get faster results.4. The statement regarding working in a marketing career that is generally true is that a digital marketing coordinator and e-commerce analyst often share similar skills.5. The skill of storytelling as a digital marketer or e-commerce analyst is that you seek out answers about people-what they want, how they think, and what motivates them to take action.6. The best description of a portfolio is that it contains your samples of past work and demonstrates relevant work experience.7. The role when you work for a single company to market and sell their products is in-house.8. The role that partners with companies to fill their digital marketing and advertising needs is an agency.9. Coordinating marketing activities, preparing reports on marketing metrics, and creating customer personas are tasks typical for associate-level roles in digital marketing.10. The job responsibilities for an e-commerce analyst include confirming customer interactions align with business objectives, facilitating a website purchase, and ensuring email ads generate desired results on a website.
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What is the solution to this equation x+15=28
Answers
Answer:
13
Explanation:
Trust me
identify which principle applies to each scenario and place the appropriate terms in the corresponding spaces. a. after spending hours researching his choices, mark decides on a laptop that will cost him $799. as he walks into his local retailer, a salesman presents him a laptop with marginally better features at the same price. however, mark would have to do further research to verify that the new alternative is in fact better. as a result, he decides that the laptop he previously decided on is good enough and buys it. mark's decision is an example of risk aversion. fairness. bounded rationality. b. charlotte delivers food for a fried chicken restaurant. when charlotte delivers a meal to a household during a major icestorm, the family, feeling sorry that charlotte has to work in extreme weather, decides to give her a $20 tip for a $10 delivery. the family's decision is an example of fairness. bounded rationality. risk aversion. c. cathy is a very good driver. in fact, she has never been in an accident in her life. however, she still takes out a comprehensive car insurance policy every year, rather than just the liability coverage the state requires. cathy's decision is an example of bounded rationality. fairness. risk aversion.
Answers
Bounded Rationality: Mark chooses a laptop after researching it for hours and then purchases it.
What is Risk aversion?Fairness-Charlotte delivers food for a $10 delivery.Risk aversion-Cathy car insurance policyRisk aversion is the propensity of people to choose outcomes with low uncertainty over those with high uncertainty, even when the average consequence of the latter is equal to or greater in monetary worth than the more definite event. This tendency is shown in both economics and finance.
The investor who favours capital preservation above the possibility of earning a higher-than-average return is referred to as risk-averse. Degrees of risk aversion are determined by the incremental marginal return an investor needs to tolerate more risk, in accordance with modern portfolio theory (MPT).
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Pure competition is important to economists because it is __________________ . Pure competition is important to economists because it is __________________ . the lowest cost to the buyer the benchmark of efficiency to compare all other models against both a. and b. none of the above
Answers
Answer:
a and b
Explanation:
A perfect or pure competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Due to maximum competition in a pure competition, it is the lowest cost to the buyer.
Pure competition is efficient because, goods are priced at equilibrum
How should the headings of a resume be formatted so that they are clear and easy to find?
a. bold and italicized
b. capitalized and bold
c. underlined and italicized
d. capitalized and underlined
Answers
Answer:
B. capitalized and bold
Explanation:
Please mark my answer as the Brainiest!!!
Got it correct on Edge.
Regardless of whether the traditional view of the total cost of quality or the zero defects view of the total cost of quality is taken, which of the following is correct?
a. As the defect level increases, the prevention cost increases.
b. As the defect level increases, the appraisal cost increases.
c. As the defect level decreases, the failure costs increase.
d. As the defect level increases, the failure costs increase.
Answers
d. As the defect level increases, the failure costs increase. According to the conventional understanding of the total cost of quality, which takes into account prevention, appraisal, and failure costs,
the cost of failure rises as the defect level does since more rework, scrap, warranty claims, and unhappy customers cost more money. The focus is on eliminating defects entirely through prevention in the zero defects view of the total cost of quality, and as the defect level rises, so does the cost of failure. Contrarily, prevention costs and evaluation costs are sometimes seen as fixed expenses that are unaffected by the severity of problems. Costs associated with preventing defects through quality planning, process design, and training are known as prevention costs, whereas expenses associated with analyzing and monitoring goods and processes are known as appraisal costs.
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According to the video, what are some decisions that Architects make? Select four options.
how much money a building will be worth when finished
what traffic patterns people will follow
how people will feel when they enter or leave a building
how many laborers are needed for a project
where to put doors, walls, and windows
what building materials to use
which people will be allowed to enter a building
Answers
The decisions that Architects make include:
how much money a building will be worth when finished.how people will feel when they enter or leave a building.where to put doors, walls, and windows.what building materials to use.Who is an architect?It should be noted that an architect simply means an individual who plans, designs and also oversees the construction of a building.
In this case, some of the decisions that Architects make include how much money a building will be worth when finished, how people will feel when they enter or leave a building, etc.
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Answer:
above answer is wrong
Explanation:
The Howe family recently bought a house. The house has a 30 year, $162,902.00 mortgage with monthly payments and a nominal interest rate of 4.4 percent. What is the total dollar amount of interest the family will pay during the first 3 years of their mortgage? (Assume that all payments are made at the end of the month.) $20,976.84 $19,976.84 $21,976.84 $22,976.84 $23,976.84
Answers
The total dollar amount of interest the family will pay during the first 3 years of their mortgage is $0.00.
To calculate the total dollar amount of interest the Howe family will pay during the first 3 years of their mortgage, we need to determine the monthly payment and multiply it by the number of months in 3 years, and then subtract the principal amount.
To calculate the monthly payment, we can use the formula for a fixed-rate mortgage:
M = P * r * (1 + r)^n / ((1 + r)^n - 1)
Where:
M = Monthly payment
P = Principal amount (mortgage amount)
r = Monthly interest rate (annual interest rate divided by 12)
n = Total number of payments (number of years multiplied by 12)
Given:
Principal amount (mortgage amount) = $162,902.00
Annual interest rate = 4.4%
Number of years = 30
First, we need to calculate the monthly interest rate:
Monthly interest rate = (4.4% / 100) / 12 = 0.0036667
Next, we calculate the total number of payments:
Total number of payments = 30 years * 12 months/year = 360
Now, let's calculate the monthly payment:
M = $162,902.00 * 0.0036667 * (1 + 0.0036667)^360 / ((1 + 0.0036667)^360 - 1)
M ≈ $819.27
Now, we can calculate the total interest paid during the first 3 years:
Total interest paid = Monthly payment * Number of months - Principal amount
Total interest paid = $819.27 * 36 months - $162,902.00
Total interest paid ≈ $29,491.72 - $162,902.00
Total interest paid ≈ -$133,410.28
Since the result is negative, it means that the Howe family revenue will have paid off the principal amount of the mortgage within the first 3 years, and there will be no interest paid during this period.
Therefore, the total dollar amount of interest the family will pay during the first 3 years of their mortgage is $0.00.
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education opens the door to employment.
Answers
Answer:
yes education opens the door to employment as Education give us a new identity and talent which people are looking for the employment. Education can lead to success and employement.
The lowcountry elite depended on plantations to make their money. How did most upcountry settlers support themselves?.
Answers
The Lowcountry's economy was based on agriculture. Although many colonists had sizable estates that produced lucrative crops like rice and tobacco, others lived on modest family farms. On plantations, slave labor was prevalent.
The Lowcountry's environment proved perfect for growing profitable crops. Plantations, as opposed to tiny, subsistence farms, were built to raise cash crops for the market. The plantation system was a forerunner of capitalism.
Families that owned slaves were affluent plantation owners. By forcing the slaves to perform their labor for a sizable fee, they were able to support themselves. Despite having a population of over 1,700, they belonged to the upper class in the southern colonies. All of the southern colonies dealt with slavery in some way.
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Executive Summary
a) All funds are in Canadian Dollars
B) Need to solve for the missing "variable" first for each of
these bonds
c) Match up "investors" holding bonds with "borrowers" issu
Answers
The executive summary should provide a concise overview of the key points. Here's an attempt at summarizing the information provided
This executive summary highlights the following points:
a) All funds mentioned in this document are denominated in Canadian Dollars.
b) It is crucial to determine the missing "variable" for each bond before proceeding with any analysis or calculations.
c) The goal is to match the "investors" holding bonds with the corresponding "borrowers" who issued those bonds.
The summary emphasizes the importance of addressing the missing variables and establishing the bondholder-borrower connections.
the specific bonds and investors are required for a more comprehensive analysis.
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Q:
Executive Summary:
a) All funds are in Canadian Dollars.
b) We need to solve for the missing "variable" first for each of these bonds.
c) We need to match up "investors" holding bonds with "borrowers" issuing them.
TRUE OR FALSE? Please help
Compound interest includes interest only on the principle balance
Answers
Mary purchased a stuffed animal toy for $5. After a few weeks, someone offered her $100 for the toy. Mary refused. One can conclude that Mary's consumer surplus from the toy is
Answers
The $95 that separates the price paid for the stuffed animal from the amount Mary would have been willing to pay for it is known as Mary's consumer surplus from the product.
The consumer surplus is the benefit enjoyed by consumers who pay less for a good than they would have been willing to pay.
A consumer surplus is a difference between the amount of money that a consumer would be willing to pay for a given product or service and the actual amount that they end up paying.
The consumer surplus represents the amount of value that the consumer receives in excess of the actual price they paid.
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what can be achieved through career exploration?
Answers
Answer:
Career exploration improves students' knowledge of career options, encouraging them to develop and work toward goals during the critical years when they are also beginning to venture beyond the orbit of their parents.
Explanation:
In order for a person to recognize needs that are not being met and make a career out of fulfilling unmet needs, that person must have _____.
Answers
Answer:
sight and foresight
QUESTION 8 of 10: You buy a lathe for $20,000. Its useful life is 10 years. Each week, over 10 years, you recognize an equal portion of its cost. This is called depreciation. What is your weekly depreciation for the lathe?
Answers
Answer:
the weekly depreciation is $38.46
Explanation:
The computation of the weekly depreciation is shown below;
Given that
The Purchase value of the lathe is $20,000
Useful life is 10 years
So, the annual depreciation is
= $20,000 ÷ 10 years
= $2,000 per year
Now the weekly depreciation is
= $2,000 ÷ 52 weeks
= $38.46
Hence, the weekly depreciation is $38.46
in preparation for an ehr, you are conducting a total facility inventory of all forms currently used. you must name each form for bar coding and indexing into a document management system. the unnamed document in front of you includes a microscopic description of tissue excised during surgery. the document type you are most likely to give to this form is
Answers
B (C and D) (C and D) Only the pathology report will provide a microscopic description of the tissue removed, even though a gross description of the tissue removed may be mentioned on the operation note or discharge summary.
What should you do first when adding a new patient to the EHR?Before entering a new patient record, the user must first run a patient search. The user must choose a random number to serve as the medical record number when creating a new patient account. False, Users of the SCMO can enter up to two insurance companies.
Patient demographics, progress notes, issues, prescriptions, vital signs, previous medical history, vaccines, laboratory results, and radiological reports are all included in this data. The clinician's process is automated and streamlined by the EHR.
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for each scenario, determine which bias is preventing a price index constructed 15 years ago from measuring the true cost of living. a. a typical family owns more cell phones and fewer landline telephones than it did a decade ago. the average price of a cell phone plan is lower than that of a residential line.
Answers
A bias of that magnitude would cause the growth of quantities deflated by the CPI, such as real wages, to be understated by 19 percent. Bias of this magnitude substantially affects how we assess the growth of our economy and the well-being of its members.
What bias is preventing a price index constructed?This level of bias has a significant impact on how we evaluate the expansion of our economy and the welfare of its constituents.
A skew of that magnitude would understate the increase in items like real earnings that are deflated by the CPI by 19%.
Therefore, Since the publication of the study in 1996, BLS has made certain methodological adjustments.
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why would anyone select a bank that has unfavorable overdraft policies
Answers
Answer:
The person may not have options due to age and distance and disabilities.
Explanation
If the liabilities of a business are Rs.7,50,000 and the capital is Rs. 8,50,000. Find the total assets.
Answers
Rs 1600000
Explanation:
accounting equation= asset= liability+capital
What are measurements that evaluate results to determine whether a project is meeting its goals?.
Answers
Metrics are measurements that evaluate results to determine whether a
project is meeting its goals.
What is Metrics?This is used to track the performance level of a project. It is used by
stakeholders and done in a quantitative manner.
Different forms of metrics include the following:
SalesProfitReturn on investmentCustomer reviews etc.This helps to measure the performance and production level of
organization with finances being an important factor.
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Which are examples of a service business? (Check all that apply)
Ford Dealership
Southwest Airlines
Procter & Gamble
McDonalds
Answers
Answer: Southwest Airlines, Ford Dealership & McDonalds
Explanation: For ex, airlines, banks, electronic support providers, law firms, plumbing repair companies, movie theaters, and managing management consulting firms are pure service companies. Foodservice McDonald's outlets. In more than 100 countries worldwide, these restaurants offer a diverse, but small value list.
In the Keynesian model, whenever planned saving exceeds planned investment:
a. there will be unplanned inventory accumulation.
b. real GDP will not be influenced.
c. the interest rate will remain unchanged.
d. there will be unplanned inventory depletion.
Answers
a. there will be unplanned inventory accumulation.
In the Keynesian model, planned saving and planned investment determine the level of aggregate demand in the economy. If planned saving exceeds planned investment, it means that households and businesses are saving more than they are investing, which leads to a decrease in aggregate demand. This decrease in aggregate demand leads to a situation where businesses find themselves with unsold goods or unplanned inventory accumulation. In order to reduce this unplanned inventory accumulation, businesses will decrease their production, which in turn will lead to a decrease in real GDP. Therefore, option (a) is the correct answer.
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