Compute the net present value of each project. Which project should be adopted based on the net present value approach?
1 answer:
Based on the cashflows to projects A and B, the rate of return, and the period of investment, the project that should be picked by Rundle Enterprises based on net present value is Project A.
The project that should be picked based on Internal rate of return is Project A.
<h3>What are the project net present values:</h3>Project A's net present value is:
= Present value of cash flows - Initial cash expenditure
= (36,113 x present value interest factor for an annuity, 8%, 5 years) - 108,000
= 36,113 x 3.99271 - 108,000
= $36,188.74
Project B's net present value is:
= 9,612 x 3.99271 - 33,000
= $5,377.93
Project A should therefore be picked as it has the higher net present value.
<h3>What are the project Internal Rate of Returns?</h3>The rate of return can be found using a spreadsheet as shown attached by using the IRR function.
Project A IRR is 20%.
Project B IRR is 14%.
The IRR rule calls for picking the project with a higher IRR which will be Project A.
Full question is:
Dwight Donovan, the president of Rundle Enterprises, is considering two investment opportunities. Because of limited resources, he 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 $108,000 and for Project B are $33,000. The annual expected cash inflows are $36,113 for Project A and $9,612 for Project B. Both investments are expected to provide cash flow benefits for the next five years. Rundle Enterprises’ desired rate of return is 8 percent.
Find out more on the Internal Rate of Return at brainly.com/question/17185302
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Answer:
1) No, there is not enough evidence to support the claim that the vaccine was effective (P-value=0.104) .
The null and alternative hypothesis are:
being the subindex 1 for the experimental group and subindex 2 for the control group.
2) Test statistic z=-1.26
Step-by-step explanation:
This is a hypothesis test for the difference between proportions.
The claim is that the vaccine was effective.
Then, the null and alternative hypothesis are:
The significance level is 0.01.
The sample 1 (experimental group), of size n1=100000 has a proportion of p1=0.0002.
The sample 2 (control group), of size n2=100000 has a proportion of p2=0.0003.
The difference between proportions is (p1-p2)=-0.0001.
The pooled proportion, needed to calculate the standard error, is:
The estimated standard error of the difference between means is computed using the formula:
Then, we can calculate the z-statistic as:
This test is a left-tailed test, so the P-value for this test is calculated as (using a z-table):
As the P-value (0.104) is bigger than the significance level (0.01), the effect is not significant.
The null hypothesis failed to be rejected.
There is not enough evidence to support the claim that the vaccine was effective.
First, you know that Jackson (let call her J) scored 41 more points than L (Leslie). What we don't know is how many points L scored so we can use a variable that will be 'x'.
So the equation will be J=41+x.
We also know that the total points is 1,189.
To find out what x is we first subtract 1,189-41. We then get 1,148.
We are now left with 2x and 1,148 so we divide 1,148 by 2 and get 574.
574=x so now we can plug that in.
J= 574+41
Jackson scored 615 points and Leslie scored 574 points
(You can use bar modeling to do solve this problem. An example of bar modeling is shown below.
So the equation will be J=41+x.
We also know that the total points is 1,189.
To find out what x is we first subtract 1,189-41. We then get 1,148.
We are now left with 2x and 1,148 so we divide 1,148 by 2 and get 574.
574=x so now we can plug that in.
J= 574+41
Jackson scored 615 points and Leslie scored 574 points
(You can use bar modeling to do solve this problem. An example of bar modeling is shown below.