Answer:
The manager should pick project B
Explanation:
To determine what decision the manager should make, the NPV of both projects should be calculated.
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
NPV for project A
Cash flows:
Year 0 = $-335,000
year 1 = $140,000
year 2 = $150,000
year 3 = $100,000
I = 6%
NPV= $14,536.87
NPV for project B
Cash flows:
Year 0 = $-365,000
year 1 = $220,000
year 2 = $110,000
year 3 = $150,000
I = 6%
NPV= $66,389.67
Both projects are profitable but because the firm uses capital rationing , the manager has to pick the now profitbale project, which is project B.
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Answer:

N = 10
N = 10PMT = 0
N = 10PMT = 0PV = 84.49
N = 10PMT = 0PV = 84.49FV = 100
N = 10PMT = 0PV = 84.49FV = 100R = Rate(10,0,84.49,-100,0) = 0.017 = 1.7%
N = 10PMT = 0PV = 84.49FV = 100R = Rate(10,0,84.49,-100,0) = 0.017 = 1.7%b. Yield = 0.02 per quarter = 0.08 per year
N = 10PMT = 0PV = 84.49FV = 100R = Rate(10,0,84.49,-100,0) = 0.017 = 1.7%b. Yield = 0.02 per quarter = 0.08 per yearcontinuous rate = ln(1+0.08) = ln(1.08)...
Answer:
Ans. The equilibrium rate of return on a 1-year Treasury bond is 6.65% (please check the explanation)
Explanation:
Hi, well, this type of bonds exist so people can avoid the time value of money risk, in other words, to keep money save from inflation and provide a risk free return at the same time. From a part of the text I can tell that the person who wrote it wanted to add up the risk free rate and the inflation rate, that is 3.05%+3.60% =6.65%.
This is why I wrote this answer, but the truth is that since they are both effective rates (risk free rate and inflation), they need to be add as effective rates, that is:

Therefore


So the real equilibrium rate of return is 6.76%, but for the sake of the question, I wrote 6.65%.
Best of luck.
Answer:
The predetermined overhead rate based on machine hours is $62
Explanation:

We will distribute the expected overhead cost over the costdriver. In this case, machine hours.
15,500,000/250,000 = 62
each machine hour carries 62 dollars of overhead.
The actual machine hours are used to determinate the applied overhead. While the actual cost it is compared with the applied to look for underapplication or overapplication.
Answer:
The correct answer is letter "A": Countertrade arrangement.
Explanation:
A countertrade arrangement is a type of trade based on bartering where countries exchange goods or services they produce without any currency involved in the transaction. The disadvantage of this mechanism relies on the complexity of setting a standard value for the goods being traded.