STAT TECH IN BUSINESS & ECON AC
STAT TECH IN BUSINESS & ECON AC
18th Edition
ISBN: 9781264731657
Author: Lind
Publisher: MCG
Question
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Chapter 17, Problem 5SR

a.

To determine

To find: The Person J’s real income in 2000 .

b.

To determine

To find: The Person J’s real income in 2018 .

c.

To determine

To interpret: the real income for 2000 and 2018 .

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Mac Corp. is considering a project that has the following cash flow data. What is the project’s internal rate of return (IRR)? Year              0          1            2              3 Cash flow -$1,000  $425      $425      $425
In The Boston Globe on September 30, 2015 you could read that Warren Buffet is worth $62 billion, and that. . .if he gave up on aggressive investing and put his money into a simple savings account, with returns at a bare 1 percent, he’d earn more in interest each hour than the average American earns in a year.Use the data in this story to estimate the annual earnings of the average American. Do you think the estimate is reasonable?
Compute the rate of return for investment represented by the following cash flow: (Ans.10.83%)   Year  0 1 2 3 4 5 Cash Flow -$595 $250 $200 $150 $100 $50
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