Answer:
b. Accept Project A and reject Project B.
Explanation:
To verify project viability at a required return rate of 16%, simply calculate the project's net present value at a rate of 16%. If the NPV is positive, then the project should be accepted, otherwise it should be rejected.
Project A:
Project A should be accepted.
Project B:
Project B should be rejected.
None of the options shows an alternative Tina has, a real alternative would be a credit card and cash ($190)
In economics, an alternative is an element that replaces or substitutes another. For an element to be considered an alternative it needs:
- To belong to the same category or have the same function.
- To be possible for the user to replace the first element using the alternative.
Based on this, let's analyze each of the options:
- Jacket and $100: These are not alternatives because Tina wants a jacket and this product cannot be replaced with money as money will not protect Tina from cold weather.
- Shoes and a jacket: These are not alternatives because Tina wants the two products not only one.
- Credit card and $100: These would be alternatives if the total cost was $100. However, using a credit card Tina can pay for both products but using $100 she can only pay for one of the products.
Therefore, the options do not present alternatives; but one valid alternative is a credit card and $190.
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Answer:
a. Payment of interest on notes payable - Operating Activity
b. Exchange of land for patent - Non Cash investing activity
c. Sale of building at book value - Investing Activity
d. Payment of dividends - Financing Activity
e. Depreciation - Operating Activity
f. Receipt of interest on notes receivable - Operating Activity
g. Issuance of Capital Stock - Financing Activity
h. Amortization of patent - Operating Activity
i. Issuance of bonds for land - Non Cash investing activity
j. Purchase of land - Investing Activity
Answer:
Private placements
Explanation:
private placements are cheaper to market than public issues
