1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Darya [45]
2 years ago
9

Dwight Donovan, the president of Finch Enterprises, is considering two investment opportunities. Because of limited resources, h

e will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of five years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $103,000 and for Project B are $41,000. The annual expected cash inflows are $34,441 for Project A and $12,522 for Project B. Both investments are expected to provide cash flow benefits for the next five years. Finch Enterprises’ desired rate of return is 8 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)
Mathematics
1 answer:
Sever21 [200]2 years ago
7 0

1. The computation of the net present value of each project is as follows:

                                     Project A           Project B

NPV                               $36,523            $9,000

2. Based on the net present value approach, <u>Project A</u> should be adopted, instead of Project B.

<h3>What is the net present value?</h3>

The net present value is the difference between the costs and the annual cash inflows discounted to their present values.

<h3>Data and Calculations:</h3>

                                      Project A           Project B

Initial costs                     $103,000          $41,000

Annual cash inflows         $34,441          $12,522

Project live                       5 years            5 years

Rate of return                    8%                    8%

Annuity factor                   3.993             3.993

PV of cash inflows       $139,523          $50,000

NPV                               $36,523            $9,000

<h3>Question Completion:</h3>

1. Compute the net present value of each project.

2. Which project should be adopted based on the net present value approach?

Thus, based on the net present value approach, <u>Project A</u> should be adopted.

Learn more about the net present value at brainly.com/question/13228231

#SPJ1

You might be interested in
Find the value of x
GuDViN [60]

Answer:

x = 12

Step-by-step explanation:

The exterior angle is equal to the sum of the opposite interior angles

3x+19 + 5x = 115

Combine like terms

8x + 19 = 115

Subtract 19 from each side

8x+19 -19 = 115 -19

8x = 96

Divide each side by 8

8x/8 = 96/8

x =12

7 0
3 years ago
The sum of a number and its reciprocal is 2whole number 1 over 6. Find that number​
notsponge [240]

Answer:

  2/3 or 3/2

Step-by-step explanation:

Let x represent the number. The given relation is ...

  x +1/x = 2 1/6

  x^2 +1 = (13/6)x

  6x^2 -13x +6 = 0 . . . . . subtract the right side and multiply by 6

  (6x -9)(6x -4)/6 = 0 . . . . factor

  (2x -3)(3x -2) = 0 . . . . . . simplify a bit

  x = 3/2  or  2/3 . . . . . . . . values of x that make the factors zero

The number is 2/3 or its reciprocal, 3/2.

6 0
2 years ago
WHAT ARE CONGRUENCE LINES
Sergeeva-Olga [200]

Answer:

Line segments are congruent if they have the same length. However, they need not be parallel. They can be at any angle or orientation on the plane. ... Rays and lines cannot be congruent because they do not have both end points defined, and so have no definite length.

7 0
3 years ago
Pig 1 worked on his house 3 hours for a day for 10 days.How long did he work
WITCHER [35]
He worked 30 hours in total
3 0
3 years ago
I need help with number 2 please.
Vedmedyk [2.9K]
The answer is 73.33333333 (repeated). You can also write it as 73 or 73.3 with a line over the 3 (after the decimal point) to indicate it being repeated.
8 0
3 years ago
Other questions:
  • Solve for x.<br>-4 - 2x = 4<br>3<br>x = [?]​
    11·1 answer
  • A copy machine makes 32 copies per minute. how many copies does it make in 4 minutes and 45 seconds?
    11·1 answer
  • What is the value of x? 2/7(x+4)=−6 −35 −25 25 35
    11·1 answer
  • In Mr. Sheldon’s physical education class, each student plays at most 1 sport.
    11·1 answer
  • An architect diagrams two sidewalks to go between the pool, grass, and seating areas as shown below
    10·1 answer
  • About 25% of the students in Mr. Goodman's class got an Aon their last math test. Of those, 50% are girls. The class has 12 girl
    7·1 answer
  • Which pair does not fit. 15 points! 5 more than the average!
    6·2 answers
  • A school system is reducing the amount of dumpster loads of trash removed each week. In week 5, there were 45 dumpster loads of
    7·1 answer
  • What is the product of 5.8×1.2 explain how you know where to place <br> the decimal point
    15·1 answer
  • HELPPPPPPPPPPPPPpppp
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!