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OLEGan [10]
2 years ago
9

The net present value (NPV) method estimates how much a potential project will contribute to

Business
1 answer:
lapo4ka [179]2 years ago
6 0

This answer requires that we fill in the blanks

  • The net present value (NPV) method estimates how much a potential project will contribute to shareholder wealth
  • The larger the NPV,  the more value the project adds; and added value means a higher stock price.
  • The NPV calculation assumes that cash inflows can be reinvested at the project's risk-adjusted WACC
  • When the firm is considering independent projects, if the project's NPV exceeds zero the firm should accept the project.
  • When the firm is considering mutually exclusive projects, the firm should accept the project with the higher positive NPV.

What is the NPV?

In order to get the NPV we have to make the following calculations for the projects A and B.

This is calculated as

Project A

-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴

= $355. 237

For the project B

We would have to perform similar calculation

Hence we would have

-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴

= 378.98

From the calculations that we have done above, we can see that the value for project B is greater hence we have to choose project B.

Read more on NPV here:

brainly.com/question/17185385

#SPJ1

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g100num [7]
It doesn't really matter. 
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Maria's grandparents immigrated from Mexico, but her parents were both born in the United States. She has an MBA and earns the h
pav-90 [236]

The answer is definitely B.

4 0
3 years ago
Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than
SashulF [63]

Complete Question:

Determine the utilization and the efficiency for each of these situations:

a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per

day and an effective capacity of 8 loans per day.

b. A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the

effective capacity is five furnaces a day.

c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than

those other systems? Explain.

Explanation:

It's not (true) actually. Whether the design capacity is comparatively (high), the utilisation could be (low) even though the efficiency was (high).

Utilisation = Output / Design capacity = \frac{17}{10} x 100%

Efficiency = Output / Effective capacity = \frac{7}{8}

Utilisation = \frac{4}{6}

Efficiency  = \frac{4}{5}

U = 1000/2000

e = 1000/1000

4 0
3 years ago
Wolverine, Inc. began operations on January 1 of the current year with a $12,400 cash balance. 45% of sales are collected in the
steposvetlana [31]

Answer:

$7,700 increase

Explanation:

We can determine the change in Wolverine's cash balance by deducting the cash disbursement and operating expenses from the cash receipts.\

Change in cash balance = Cash receipts - Cash disbursement - Operating expense

Change in cash balance = $48,000 - $33,800 -$6,500

Change in cash balance = $7,700

WORKING:

<u>Cash Receipts</u>

Sales

February ( 59,000 x 45%)            $26,550

January ( 39,000 x 55%)              $21,450  

Total                                               $48,000

<u>Cash disbursement</u>

Purchases

February ( 44,000 x 15%)            $6,600

January ( 32,000 x 85%)             $27,200  

Total                                              $33,800

<u>Operating expenses </u>

Incurred                                        $9,400

Depreciation                                ($2,900)

Net                                                 $6,500

7 0
3 years ago
There are approximately __ types of federal grants
sveticcg [70]

Answer:

The correct answer would be option C, 3.

Explanation:

There are three types of grants offered by the Federal Government.  

These are as follows:

1) Federal Pell Grants

2) Federal Supplemental Education Opportunity Grants

3) Work Study Programs

Federal Pell Grants provides financial aid to the students, not exclusive to their family income, serves as the prized resource among students. There are certain conditions whom a student must fulfill in order to be eligible for this grant.  

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Work Study Programs also provide the financial aid to the students by providing them part time job opportunities to meet their financial college expenses.

8 0
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