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s344n2d4d5 [400]
1 year ago
6

project x has an initial cost of $20,000 and a cash inflow of $25,000 in year 3. project y costs $40,700 and has cash flows of $

12,000, $25,000, and $10,000 in years 1 to 3, respectively. the discount rate is 6 percent and the projects are mutually exclusive. based on the individual project's irrs you should accept project ; based on npv you should accept project ; the final decision should be to accept project . multiple choice y; y; y y; x; x x; y; y x; x; x y; x: y
Business
1 answer:
Helen [10]1 year ago
3 0

Project X has a $20,000 start-up cost and a $25,000 cash inflow in year 3. Project Y has a $40,700 cost and generates cash flows of $12,000, $25,000, and $10,000 over the course of its first three years. The projects are mutually exclusive, and the discount rate is 6%. You should approve the project in the end based on the irrs and npv of each individual project as well as your own assessment of those factors. X;Y:Y.

Start-up costs are the costs a business spent or incurred to establish an active trade or business, or to research establishing or acquiring an active trade or business. Start-up costs are sums paid or expended in connection with a current profitable activity that is intended to generate money prior to the activity becoming a fully operational trade or business. Equipment, incorporation fees, insurance, wages, and taxes are just a few of the startup costs. Although startup costs will differ depending on your business's industry and type, an expense for one firm might not be applicable to another. It helps you effectively launch your firm and maintain profitability after your doors are open to understand your expenses and how you will manage them.

Learn more about startup costs here

brainly.com/question/10168576

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Thompson company is a consulting firm and applies indirect overhead costs based on billing hours. the firm expects to have $7,70
maksim [4K]

The total cost of the consulting job = (Indirect cost per hour + Direct cost per hour ) * Total hours

The total cost of the consulting job = ( $11 per hour + $60 per hour ) * 20 hours

= $ 71 * 20 = $ 1,420

Here , the Indirect cost per hour is $ 11 ( 7,700 / 700 )

Direct cost per hour is $ 60

And the total number of hours billed is 20

8 0
3 years ago
Pure competition is important to economists because it is __________________ . Pure competition is important to economists becau
Ksju [112]

Answer:

a and b

Explanation:

A perfect or pure competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

Due to maximum competition in a pure competition, it is the lowest cost to the buyer.

Pure competition is efficient because, goods are priced at equilibrum

6 0
3 years ago
The last recession changed the way many companies offer support to people and communities in need. Many companies ______________
lutik1710 [3]
The last recession changed the way many companies offer support to people and communities in need. Many companies <span>decreased financial donations but encouraged their employees to volunteer their time to corporate social initiatives and projects.</span>
4 0
3 years ago
Linda installed a special pool for the hydrotherapeutic treatment of severe arthritis, as prescribed by her doctor. The cost of
Hoochie [10]

Answer:

Linda is entitled to a deduction of $14,300 in the year of installation of the pool

Explanation:

<em>Step 1: Determine total installation cost</em>

total installation cost=installation-insurance

where;

installation cost=$20,000

insurance cost=$5,000

replacing;

total installation cost=20,000-5,000=15,000

total installation cost=$15,000

<em>Step 2: Determine annual increase in house value</em>

annual increase in house value=increase in house value/useful life

where;

increase in house value=$7,000

useful life=10 years

replacing;

annual increase in house value=7,000/10=$700

<em>Step 3: Determine total deductions</em>

total deductions=installation cost-annual increase in house value

where;

installation cost=$15,000

annual increase in house value=$700

replacing;

total deductions=15,000-700=$14,300

Linda is entitled to a deduction of $14,300 in the year of installation of the pool

4 0
3 years ago
On the demand side of GDP, consumption by _____________ is the largest component of GDP, accounting for about two-thirds of the
Tpy6a [65]

Answer:

The correct answer is <em>households.</em>

Explanation:

The final consumption expenditure of households (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines and personal computers), purchased by households. Home purchases are excluded, but includes the imputed income of the homes occupied by their owners. It also includes the amounts and fees paid to governments to obtain permits and licenses. In this case, household consumption expenditure includes the expenses of nonprofit institutions that provide services to households, even when the country reports them separately. This item also includes any statistical discrepancy in the use of resources in relation to the supply of resources.

5 0
3 years ago
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