Answer:
Multiple IRRs:
Said another way, Multiple IRRs occur when a project has more than one <em>internal rate of return.</em> The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).
Internal rate of return (IRR) is one of the most commonly used capital budgeting tools. Investors make decisions by comparing the IRR of the project under consideration with the <em>hurdle rate</em>. If the IRR is greater than the hurdle rate, the project is accepted, otherwise it is rejected. When there are more than two IRRs, it is not exactly clear which IRR to compare with the hurdle rate.
Hurdle rate is the minimum required rate of return which businesses use as a benchmark to decide whether to invest in a project or not.
<em>So a typical situation which can generate negative cashflows which can in turn lead to multiple IRRs towards the end of the project is where the conditions of investment become adverse towards the end of the project.</em>
Imagine that toward the end of the lifecycle of a project, a forecasted increase external costs such as Interest Rate, influenced by government policies translates to an erosion of the bottom line generated by the business in that year.
Period 0 1 3 3 4 5
Unconventional cash flows ($)-19,000 16,000 16,000 6,000 6,000 -52,000
The series is non-conventional cash-flow pattern, which has two sign changes. This is the range in which the net present value of the non-conventional cash flow series is positive. The multiple IRR problem poses a series problem to analysts because the decision is not obvious.
Cheers!
Answer:
the labor efficiency variance is $35,244 favorable
Explanation:
The computation of the labor efficiency variance is shown below:
As we know that
Efficiency Variance is
= Standard rate × (Standard hours - Actual Hours)
= $13.20 × (9.4 ×1,050 units - 7,200 hours)
= $13.20 × (9,870 hours - 7,200 hours)
= $35,244 favorable
hence, the labor efficiency variance is $35,244 favorable
Answer: Equilibrium price is $3 and equilibrium quantity is 40 units.
Explanation:
Demand equation is given by,
Therefore the demand equation is given by, 
Supply equation is given by
Therefore, the supply equation is given by,
Equilibrium is given by
Answer:
yes
Explanation:
the constitution does set down the rights of the people like right to freedom and right to equality
