Answer:
1. In a Year 20,367 20,017
2. In a Year 21,333 21,917
3. In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,
4.Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .
Explanation:
1. Using NPW Analysis
Walmart Kit Target
Intial Cost 40000 65000
AMC 10000 12000
Salvage Value 12000 25000
Life Years 3 6
Total Cost
Intial Cost 40000 65000
Less Salvage 12000 25000
Balance 28000 40000
5% Interest 6000 19500
AMC PV 2.71 5.05
Amc 27100 60600
Total Cost 61100 120100
In a Year 20,367 20,017
2. Using EUAW Analysis
Walmart Kit
Target
Intial Cost 40000 65000
AMC 10000 12000
Salvage Value 12000 25000
Life Years 3 6
Total Cost
Intial Cost 40000 65000
Less Salvage 12000 25000
Balance 28000 40000
5% Interest 6000 19500
AMC 30000 72000
Total 64000 131500
In a Year 21,333 21,917
In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,
Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .
Hence Target product will be the best option we would advice the management to go for.
The reason why Coca-Cola structured their stock options as they did was to encourage employees not to sell their options.
<h3>
</h3><h3>Why did Coca-Cola issue options at close to market price?</h3>
When options are redeemed and sold, it works to decrease the price of stock thanks to the increased supply of stock in the market.
Coca-Cola therefore granted their options at close to market value so that employees would be encouraged to hold their stock options instead of redeeming them and decrease share price.
Find out more on granting options at brainly.com/question/13573990.
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Answer:
What I think it's C if it's not I probably think it's gonna be D
1 : D
2: A
3: B
4: C
5: C
6: A
7: C
8: C
Hope this helps u brainliest is appreciated
~lexy
