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Alex_Xolod [135]
1 year ago
5

All else constant, the net present value of a typical investment project increases when:

Business
1 answer:
nekit [7.7K]1 year ago
3 0

Answer:

The correct answer is letter "B": The rate of return decreases.

Explanation:

Net Present Value or NPV is a mathematical calculation used to determine if a project could be profitable or not. NPV is obtained by subtracting the present value of outflows from the present value of inflows, In case NPV is positive, it is expected a project will provide the firm profits, while a negative NPV implies the company incurring in losses.

<em>The Rate of Return (RoR) has an inverse relation with the NPV meaning if the RoR decreases the NPV will increase and vice versa.</em>

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El Salvador has a population density of about 620 people per square mile and neighboring Honduras a population density of about
BaLLatris [955]

Answer:

have a higher labor-to-land ratio than its imports from Honduras

Explanation:

The factor proportions theory  (or Heckscher-Ohlin model) of trade states that countries will export the goods which they can produce using their abundant factors of production. For example, countries like Japan that have abundance of labor force and capital, but very little land, will produce and export industrial goods that require a lot of labor and capital. On the other hand, countries like Argentina which have abundant labor and land, will export agricultural products.

in this case, El Salvador compared to Honduras has abundant labor, so the products that El Salvador exports to Honduras will have a higher labor-to-land due to the abundance of labor.

7 0
1 year ago
Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipment has a 3-year tax life,
Misha Larkins [42]

Answer:

cash flow  = $13090

Explanation:

given data

Equipment cost=  $70,000

Sales revenues = $42,500

operating costs = $25,000

Tax rate = 35.0%

solution

we know that MCAR for 7 % is

MCAR  = 7% of 70000 = $4900

and

sale rev is 42000

so

EBITDA = sale rev - operating cost

EBITDA =  42500 - 25000

EBITDA  = $17500

and

EBIT = 17500 - 4900

EBIT = 12600

and

tax is 35 % that is = 4410

and

PAT = EBIT - tax

PAT = 12600 - 4410

PAT = 8190

so

cash flow = 8190 + 4900

cash flow  = $13090

4 0
2 years ago
Read 2 more answers
Which recruitment sources could result in charges of inbreeding and possible violation of the eeo regulations?
pav-90 [236]
The recruitment source is EMPLOYEE REFERRAL.
Employee referral is an internal recruitment method  which is usually employed by companies to identify potential candidates from the existing employee social network. The method is the most cost effective and efficient method for recruiting employees.
7 0
1 year ago
Total Accounting has developed new software for nonprofit organizations that allows them to send donors receipts via text or ema
levacccp [35]

Answer: Donors(people donating for the progress of the society).

Explanation:

The solution or answer to this exam or problem or question can be seen or found in the first sentence of the question, that is;

"Total Accounting has developed new software for nonprofit organizations that allows them to send DONORS receipts via text or email".

Take note of the capitalized word, " donors" because that is the simplest answer to the question.

Therefore, the software was built and designed for people that are going to be donating or giving back to the society. The software is built in such a way that the Total Accounting marketing team can track who donors are.

4 0
1 year ago
Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on CCN is 12% and that the exp
cricket20 [7]

Answer:

P14 = $55.69545045394  rounded off to  $55.70

Explanation:

The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,

P0 = D1 / (r - g)

Where,

  • D1 is the dividend expected in Year 1 or next year
  • g is the constant growth rate in dividends
  • r is the discount rate or required rate of return

To calculate the price of the share today, we use the dividend that is expected next year or in Year 1. Thus, to calculate the price of the share 14 years from now, we use use D15. The D15 can be calculated as follows,

D15 = D1 * (1+g)^14

D15 = 0.50 * (1+0.09)^14

D15 = $1.67086351362  rounded off to  $1.67

Now using the equation for Price as provided by the DDM model,

P14 = 1.67086351362 / (0.12 - 0.09)

P14 = $55.69545045394  rounded off to $55.70

6 0
1 year ago
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