Answer: Longer-term project
Explanation:
At the beginning of a project, it may not be possible to estimate the costs for all activities with some levels of confidence regarding their accuracy if the project isn't a short-term project, because it's not really possible to accurately fortell the costs of unforseeable outcomes and factors that may affect the project in one way or the other in the long run.
Answer:
IRR = 12.92%
Explanation:
<em>The IRR is the discount rate that equates the present value of cash inflows to that of cash outflows. At the IRR, the Net Present Value (NPV) of a project is equal to zero
</em>
<em>If the IRR greater than the required rate of return , we accept the project for implementation </em>
<em>If the IRR is less than that the required rate , we reject the project for implementation </em>
A project that provides annual cash flows of $24,000 for 9 years costs $110,000 today. Under the IRR decision rule, is this a good project if the required return is 8 percent?
Lets Calculate the IRR
<em>Step 1: Use the given discount rate of 10% and work out the NPV
</em>
NPV = 9000× (1-1.10^(-4)/0.1) - 27,000 =1528.78
<em>Step 2 : Use discount rate of 20% and work out the NPV (20% is a trial figure)
</em>
NPV = 9000× 1- 1.20^(-4)/0.2 - 27000 = -3701.38
<em>Step 3: calculate IRR
</em>
<em>IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%</em>
IRR = 10% + 1528.78/(1528.78+3701.38)× (20-10)%= 0.12923
= 0.129230153 × 100
IRR = 12.92%
If an economic crisis caused the collapse of the automobile industry, then "AS shifts left and the output would increase".
<u>Answer:</u> Option E
<u>Explanation:</u>
The aggregate demand / aggregate supply model is a system that indicates what establishes the economy's total supply or total demand, as well as how the macroeconomic level interacts with total demand and supply.
In time, the vertical line portraying potential GDP or the "full employment scale of GDP" will also progressively shift to the right. As the cost of key inputs increases, the aggregate supply curve shifts to the left, allowing for a mixture of lower output, higher unemployment, and increased inflation.
Answer:
The company's earnings per share on common stock is $7.50
Explanation:
Given data
Net income N = $160,000
Preferred dividends D = $10,000
common stock outstanding C = 20,000
Market price P = $35 / share
to find out
earnings per share on common stock is
solution
we will find earning per share that is given by
Earnings per share = (net income - preferred dividend ) / common stock outstanding
so now put all these value in this equation we get
Earnings per share = ( 160,000 - 10,000 ) / 20,000
Earnings per share = ( 150,000 ) / 20,000
Earnings per share = 7.5
so The company's earnings per share on common stock is $7.50