This document discusses incremental analysis and internal rate of return (IRR) for evaluating mutually exclusive investment projects. It addresses issues like: (1) IRR alone cannot be used to compare projects without knowing investment sizes; (2) incremental investment looks at the additional returns from one project over another; (3) incremental IRR must exceed the minimum acceptable rate of return (MARR) for a project to be selected. Examples are provided to illustrate incremental cash flows and IRR calculations to determine the best project. The document also distinguishes between simple and non-simple investments that have implications for using IRR as a decision criterion.
Capital Budgeting is the formal process of investments or expenditure that is huge in amount. It involves the company's major decision where to invest the current fund in the development of the organization such as for addition, disposition, modification, or replacement of fixed assets.
Capital Budgeting is the formal process of investments or expenditure that is huge in amount. It involves the company's major decision where to invest the current fund in the development of the organization such as for addition, disposition, modification, or replacement of fixed assets.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
2. Comparing Mutually Exclusive Alternatives
Based on IRR
• Issue: Can we rank the mutually exclusive
projects by the magnitude of its IRR?
n A1 A2
0
1
IRR
-$1,000 -$5,000
$2,000 $7,000
100% > 40%
$818 < $1,364
PW (10%)
4. Can’t Compare without Knowing Their
Base Salaries
Bill Hillary
Base Salary $50,000 $200,000
Pay Raise (%) 10% 5%
Pay Raise ($) $5,000 $10,000
For the same reason, we can’t compare mutually exclusive projects based on
the magnitude of its IRR. We need to know the size of investment and its timing
of when to occur.
5. Incremental Investment
• Assuming a MARR of 10%, you can always earn that rate from other
investment source, i.e., $4,400 at the end of one year for $4,000
investment.
• By investing the additional $4,000 in A2, you would make additional
$5,000, which is equivalent to earning at the rate of 25%. Therefore,
the incremental investment in A2 is justified.
n Project A1 Project A2
Incremental
Investment
(A2 – A1)
0
1
-$1,000
$2,000
-$5,000
$7,000
-$4,000
$5,000
ROR
PW(10%)
100%
$818
40%
$1,364
25%
$546
6. Incremental Analysis (Procedure)
Step 1: Compute the cash flow for the difference
between the projects (A,B) by subtracting
the cash flow of the lower investment
cost project (A) from that of the higher
investment cost project (B).
Step 2: Compute the IRR on this incremental
investment (IRR ).
Step 3: Accept the investment B if and only if
IRR B-A > MARR
B-A
NOTE: Make sure that both IRRA and IRRB are greater than MARR.
7. Example 7.7 - Incremental Rate of Return
n B1 B2 B2 - B1
0
1
2
3
-$3,000
1,350
1,800
1,500
-$12,000
4,200
6,225
6,330
-$9,000
2,850
4,425
4,830
IRR 25% 17.43% 15%
Given MARR = 10%, which project is a better choice?
Since IRRB2-B1=15% > 10%, and also IRRB2 > 10%, select B2.
8. IRR on Increment Investment:
Three Alternatives
n D1 D2 D3
0 -$2,000 -$1,000 -$3,000
1 1,500 800 1,500
2 1,000 500 2,000
3 800 500 1,000
IRR 34.37% 40.76% 24.81%
Step 1: Examine the IRR for each
project to eliminate any project
that fails to meet the MARR.
Step 2: Compare D1 and D2 in pairs.
IRRD2-D1=27.61% > 15%,
so select D1. D1 becomes the
current best.
Step 3: Compare D1 and D3.
IRRD3-D1= 8.8% < 15%,
so select D1 again.
Here, we conclude that D1 is the best
Alternative.
9. Practice Problem
You are considering
four types of
engineering designs.
The project lasts 10
years with the following
estimated cash flows.
The interest rate
(MARR) is 10%. Which
of the four is more
attractive?
A B C D
Initial cost $150 $220 $300 $340
Revenues/
Year
$115 $125 $160 $185
Expenses/
Year
$70 $65 $60 $80
10. Incremental Analysis for Cost-Only Projects
Items CMS Option FMS Option
Annual O&M costs:
Annual labor cost $1,169,600 $707,200
Annual material cost 832,320 598,400
Annual overhead
cost
3,150,000 1,950,000
Annual tooling cost 470,000 300,000
Annual inventory cost 141,000 31,500
Annual income taxes 1,650,000 1,917,000
Total annual costs $7,412,920 $5,504,100
Investment $4,500,000 $12,500,000
Net salvage value $500,000 $1,000,000
12. Solution:
PW i
P A i
P F i
IRR
FMS CMS
FMS CMS
( ) $8, ,
$1,908, ( / , , )
$2, , ( / , , )
.43%
000 000
820 5
408 820 6
0
12 15%,
select CMS.
13. Ultimate Decision Rule:
If IRR > MARR, Accept
• This rule works for any investment situations
• In many situations,
IRR = ROR
but this relationship does not hold for an investment
with multiple RORs.
14. Predicting Multiple RORs (Chapter
7A)
- 100% < i *< infinity
• Net Cash Flow Rule of Signs
No. of real RORs (i*s)
<
No. of sign changes in the project
cash flows
15. Example
n Net Cash flow Sign Change
0
1
2
3
4
5
6
-$100
-$20
$50
0
$60
-$30
$100
1
1
1
• No. of real i*s 3
• This implies that the project could have
(0, 1, 2, or 3) i*s but NOT more than 3.
16. Accumulated Cash Flow Sign Test
Find the accounting sum of net cash flows at
the end of each period over the life of the
project
Period Cash Flow Sum
(n) (An ) Sn
If the series S starts negatively and changes sign
ONLY ONCE, there exists a unique positive i*.
S A
S S A
S S A
S S A
N N N
0 0
1 0 1
2 1 2
1
A
A
A
AN
0
1
2
0
1
2
N
17. Example
n An Sn Sign change
0
1
2
3
4
5
6
-$100
-$20
$50
0
$60
-$30
$100
-$100
-$120
-$70
-$70
-$10
-$40
$60 1
• No of sign change = 1, indicating a unique i*.
• i* = 10.46%
18. Example A.2
$2,145
$3,900
$5,030
$1,000
0 1
2
3
• Is this a simple investment?
• How many RORs (i*s) can you expect from
examining the cash flows?
• Can you tell whether or not this investment has a
unique rate of return?
19. Summary
Rate of return (ROR) is the interest rate earned on
unrecovered project balances such that an investment’s cash
receipts make the terminal project balance equal to zero.
Rate of return is an intuitively familiar and understandable
measure of project profitability that many managers prefer to
NPW or other equivalence measures.
Mathematically we can determine the rate of return for a
given project cash flow series by locating an interest rate that
equates the net present worth of its cash flows to zero. This
break-even interest rate is denoted by the symbol i*.
20. Internal rate of return (IRR) is another term for ROR that
stresses the fact that we are concerned with the interest
earned on the portion of the project that is internally invested,
not those portions that are released by (borrowed from) the
project.
To apply rate of return analysis correctly, we need to classify
an investment into either a simple or a nonsimple investment.
A simple investment is defined as one in which the initial
cash flows are negative and only one sign change occurs in
the net cash flow, whereas a nonsimple investment is one for
which more than one sign change occurs in the net cash flow
series.
Multiple i*s occur only in nonsimple investments. However,
not all nonsimple investments will have multiple i*s either.
21. For a simple investment, the solving rate of return (i*) is the
rate of return internal to the project; so the decision rule is:
If IRR > MARR, accept the project.
If IRR = MARR, remain indifferent.
If IRR < MARR, reject the project.
IRR analysis yields results consistent with NPW and other
equivalence methods.
For a nonsimple investment, because of the possibility of
having multiple rates of return, we need to calculate the true
IRR, or known as “return on invested capital.” However, your
objective is to make an accept or reject decision, it is
recommended the IRR analysis be abandoned and either the
NPW or AE analysis be used to make an accept/reject
decision.
When properly selecting among alternative projects by IRR
analysis, incremental investment must be used.