What are the standard price and standard price if increased by 10 percentfor every product?

Q: Assuming your fixed cost per year are $10,000 are you making enough profit to pay that amount ?

A: Working:

Q: How many years will it take for something costing $61 today to cost $91 if inflation averages 1% per…

A: Using excel nper function

Q: If a project costs $120,000 and is expected toreturn $40,000 annually, how long does it take…

A:

Q: Suppose an initial investment of $100 returns $40 at the end of the first year and $80 at the end of…

A:

Q: What is the PV of a stream of 5 consecutive CFs, starting next year.  The first CF =$5,000, and the…

A: Present value of unequal cash flows can be calculated by using this equation Present value(PV)…

Q: Suppose the costs of an environmental pollution-control program are expected to be equal to $80 per…

A: Calculate net benefits at 4% discount rate as below: Net Benefit=NPV50years + NPV51 years…

Q: Given the table of values, solve for the Benefit Cost Ratio (round-off to 4 decimal places) at an…

A: The benefit-cost ratio (B/C ratio) is a kind of capital project evaluation technique that compares…

Q: What is the IRR of a project that costs $1,000 now and produces $900 next year and $900 the year…

A: IRR is the rate of return a project generates in its lifetime expressed in annual terms. IRR is…

Q: What is the IRR of a project that costs $1,000 now and produces $600 next year and $600 the year…

A: IRR usage is done for doing a project analysis. It is further helpful to decide the capital projects…

Q: If the discount rate is 8 percent, then the projects NPV is $. (Round to the nearest dollar.)

A: Net present value (NPV) of an investment refers to the variance between the initial investment or…

Q: If the IRR of a project is 10% will the MIRR be more or will it be less than 10%?

A: MIRR = [(Future Value of positive cashflows / PV of negative Cashflows)^(1/years) ]- 1

Q: An investment costs sh.150,000 and pays sh. 12,000 in perpetuity. If the interest rate is 9 percent,…

A: The payments flow which continues for indefinite period with equal amount and interval is called…

Q: cal? The expected 20 years. A 9% rate is used to e process facilities, which are compare at worth.…

A: We need to compute the present worth of both the options. Option with the lowest present worth shall…

Q: A firm wishes to find the present value of $3,200 that will be received 10 years from now. The…

A: Information Provided: Future value = $3200 Oppurtunity cost = 8% Term = 10 years

Q: You have the opportunity to make an investment that costs $1.000,000. If you make this investment…

A: YEAR CASH FLOW      0  $                                   (1,000,000.00) 1  $…

Q: is 100 k€. Compare the industrial investment against a financial investment with a 10% nominal…

A: Value of both type of investment, taken as 500K€ for better comparison. And as there is no…

Q: Find the he effective yield of an investment that earns 3.45% compounded weekly.

A: The effective yield shows increase in invested principal in terms of percentage over a period.…

Q: What is the internal rate of return (IRR) of a project that costs $20,070 if it is expected to…

A: Internal rate of return is the return at which the present value of the project is zero. In other…

Q: Assuming monetary benefits of an IS at $85,000 per year (5% inflation), one-time sunk developmental…

A: ROI means return on Investments. It is calculated by dividing the net cash inflows by the…

Q: What is the IRR of a project that costs $1,000 now and produces $500 next year and $500 the year…

A: Working note:

Q: A project has a rate of return of 23%. What is the future value of the project if the investment…

A: Future value is the future worth of cash flows that have occurred in the present or past.

Q: Consider an asset that costs $120 today. You are going to hold it for 1 year and then sell it.…

A: The expected return of a portfolio is the weighted average of the return of the individual…

Q: What is the NPV at a discount rate of zero percent? What is the discount rate is 10%? What if it is…

A: Net Present Value(NPV) is amongst one of the modern techniques of capital budgeting which considers…

Q: If the discount rate is 6 percent, then the project's NPV is $ (Round to the nearest dollar.)

A: Net Present Value (NPV): It represents the investment's profitability in dollar amounts. It is…

Q: What is the IRR of a project that costs $1,000 now and produces $1,000 next year?

A: Given information: Initial cash flow is $1,000 Cash flow in first year is $1,000

Q: If the price of a gallon of regular gasoline is ​$2.49 and the anticipated rate of inflation in…

A: The provided information are: Present value (PV) = $2.49 Interest rate (r) = 5% Time period (n) = 10…

Q: What is the returnon an investment that costs $1,000 and is soldafter 1 year for $1,060?

A: Given information: Investment cost (purchase price) is $1,000 Sale price is $1,060

Q: A $10 million investment in 90 day T-bill has a 1.5% quoted yield. An equivalent size 180 day CD has…

A: Treasury Bill(T-Bill) refers to those securities that have a maturity value of less than 1 year.…

Q: Which of the following compounding frequencies will produce the smallest future value?…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: If the initial cost is $3000 and i= 10% per year, PO= ? Select one: O a. $3000 O b. $4000 O c. $9000…

A: P0 means the price right now i.e. year 0. It means the price without taking in to effect of any…

Q: If the discount rate is 10 percent and the firm applies the Net Present Value (NPV) decision rule,…

A: Capital budgeting is a method used for finding the profitability of investment projects. This…

Q: 1. Calculate the present value of $90,000 to be received 14 years from now it the decision makers'…

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: The average cost of a certain model car was $22,000 ten years ago. This year the average cost is…

A: Expected Return: The expected return is the minimum required rate of return which an investor…

Q: Suppose the price of wheat over the next year is expected rise to $3.50 in the United States and to…

A: Forward exchange rate can be defined as the rate at which currency of one country is exchanged by…

Q: If $414 invested today yields $450 in one year's time, what is the discount factor?

A: given, present value = $414 future value=$450 n=1 let the discounting rate =r

Q: You are considering a project that requires a $1000 investment today and returns $550 at the end of…

A: NPV or Net present value of an investment  proposal  is the difference between the present value of…

Q: Use present value tables to compute the present value of 10 equal payments of $15,000, with…

A: Present value: It can be defined as today’s worth of an investment to be received in the future,…

Q: A firm is considering the following alternatives, each with a five year life. What is the IRR of the…

A: Internal Rate of Return is the discounting rate where the net present value of the project is zero.

Q: What is the effective annual yield of 8.7% com-pounded continuously?

A: EAR is the effective annual rate an investment will generate after taking the compounding effect. It…

Q: If the annual cost of a given good rises 2.3% per year for the next 20 years, write an equation to…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: What is the highest effective rate attainable with a 12 percent nominal rate?

A: Given information: Nominal rate is 12% Usually, highest effective rate is nothing but continuous…

Q: Find the overall percentage change in the price of a good if it rises by 5% in a year but is then…

A: Price Change: Price Change  is an important part of financial analysis.

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.