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bixtya [17]
3 years ago
12

Project A has a required return on 9.2 percent and cash flows of −$87,000, $32,600, $35,900, and $43,400 for Years 0 to 3, respe

ctively. Project B has a required return of 12.7 percent and cash flows of −$85,000, $14,700, $21,200, and $89,800 for Years 0 to 3, respectively. Which project(s) should you accept based on net present value if the projects are mutually exclusive? Multiple Choice Accept Project A and reject Project B Reject Project A and accept Project B Accept both projects Reject both projects Accept either one, but not both
Business
1 answer:
LiRa [457]3 years ago
5 0

Answer:

Accept Project B , Reject Project A

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be found using a financial calculator

For project A ,

Cash flow in year 0 = $-87,000

Cash flow in year 1 = $32,600

Cash floe in year 2 = $35,900

Cash floe in year 3 = $43,400

I = 9.2%

NPV = $6,288.17

For project B,

Cash flow in year zero = −$85,000

Cash flow in year 1 = $14,700

Cash flow in year 2 = $21,200

Cash flow in year 3 = $89,800

I = 12.7%

NPV = $7,468.93

Based on the NPV, the second project would be chosen because it has a higher NPV.

Both projects are profitable but because the projects are mutually exclusive, only the more profitable project can be chosen.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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Victor Rumsfeld Inc.'s dividend policy is under review by its board. Its projected capital budget is $2,000,000, its target capi
melomori [17]

Answer:

The multiple choices are

a.  $240,000

b. $228,000

c. $216,600

d.$205,770

e. $0

The correct option is E,$0

Explanation:

The funding required from equity is 40% of the projected capital budget of $2000,000 which is expected to be from the profit attributable to stockholders since new issue of shares is not contemplated.

In other words, dividends payable to shareholders is the net income less their counter funding of the project which is computed below:

residual dividends=net income-(equity%*capital outlay)

residual dividends=$300,000-(40%*$2000,000)

                               =$300,000-$800,000=$0

In essence the $300,000 is not even enough as funds expected from equity less alone paying excess as dividend

3 0
3 years ago
Determine whether the following arguments are best interpreted as being inductive or deductive. Also state the criteriayou use i
eduard

Answer:

Congruent triangles has the two angles of one of their sides equal

This means if a triangle side has angles of 30 and 60 degrees the other triangle also has 30 and 60 degrees.

An isoceles triangle will have 2 angles of the same degree. Thus, If triangle A is isoceles then, two angles add up to make the third equal to one these two.

We should remember that angles inside a triangle always add up to 180ª

2a +b = 180

a + b = 180 - a

if the other triangle has 2 angles mathing the isoceles triangle, then it is also  an isoceles.

Uploaded an image of an isoceles triangle to understand better.

Explanation:

6 0
3 years ago
"The New Age Gallery has different admission prices for students, adults, and seniors. All three groups are entitled to the same
Pani-rosa [81]

Answer:

Customer-segment pricing

Explanation:

Customer-segment pricing is a form where the price of the product is grounded on the segment of the customer. It is the segmentation of the price, where the different prices are charged to different people for the similar or the same service or the product.

In this case, the gallery has a different admission prices for seniors, adults and students and they are entitled to have a same service, this form of the pricing is known as the customer pricing segment.

3 0
2 years ago
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price
Cloud [144]

Answer:

Yield with 6-day maturity is 7.70%

Yield with 18-day maturity is 2.57%

Explanation:

The formula for yield on repurchase is given as:

y = ( PAR – P ) / P x (360 / t )

P=Purchase price

PAR=Repurchase price

t= number of days of the transaction

In first scenario,PAR is $39 million,P is $38.95 million and t=6

y=($39000000-38950000)/38950000*(360/6)

y=7.70%

In the second scenario,details remained the same except for t that is 18

y=($39000000-38950000)/38950000*(360/18)

y=2.57%

This implies the longer the maturity the lesser the yield since yield is computed on daily basis.

3 0
3 years ago
The demand curve has what kind of slope?
Leto [7]

It is a graph that shows the relationship between the quantity demanded of a commodity at different prices over a given period of time. It is observed that the demand curve slopes downward from left to right. It shows it has a negative slope which implies that consumers purchase more of commodity at lower prices than at higher prices.

Hope this helps and pls give me brainliest

8 0
3 years ago
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