Answer:
The correct option is d. Project B.
Step-by-step explanation:
Note: See the attached excel file for the calculation of the Cumulative Cash Flows of Projects A and B.
Payback period refers to the number of time or period that is needed to recoup the amount of money spent a project. The
payback period rule states that when considering two or more projects, a project with the shortest payback period should be selected.
Payback period can be calculated as follows:
Payback period = Time before full recovery + (Unrecovered cost at start of the time of full recovery / Cash flow during the time of full recovery) ………………. (1)
Using the information in the excel file (in red color), equation (1) can be calculated for Project A and Project B as follows:
Project A payback period = 2 + ($1,000 / $3,000) = 2.33
Project B payback period = 2 + ($3,000 / $10,000) = 2.30
Since the payback period of Project B payback period which is 2.30 is lower than the Project A payback period of 2.33, Project B should be selected.
Therefore, the correct option is d. Project B.
Y=6. if you’re looking for what y is
Every hour at 12km/h I would go 12km. Simple.
The distance traveled in km is equal to 12 times how many hours you go.
If I go 27 km, I can go in reverse and divide by 12 to get 2.25 hours.
A quarter of an hour is 15 minutes, so the answer would be 2 hours and 15 minutes.
Let's try to tease out a function for the area of our hypothetical rectangle:
We know that the area of a rectangle is Base x Height, and the base will be the length of the x-axis portion of the rectangle. Looking at a graph of y=27 - x^2 will help with intuition on this.
The length of the base will be 2x, since it will be the distance from the (0,0) axis in the positive direction and in the negative direction.
So our rectangle will have an area of 2x, multiplied by the height.
What is the height? The height will be our y value.
Therefore,
A = 2x * y, where x is x-value of the positive vertex.
We already know what y is as a function of x:
y= 27 - x^2
That means our equation for the area of the rectangle is:
A = 2x (27 - x^2) Distribute the terms....
A = 54x - 2x^3
This is essentially a calculus optimization problem. We want to find the Maximum for A, so let's find where the derivative of A is equal to zero.
First, we find the derivative:
A = 54x - 2x^3
A' = 54 - 6x^2
Set A' equal to zero to find the maximum value for A
0 = 54 - 6x^2
6x^2 = 54
x^2 = 9
x = 3
We got our x-value! Now let's find the y value at that point:
y= 27 - x^2
y = 27 - 9
y = 18
The height our rectangle will be 18, and our base will be 2*x = 2*3 = 6
Area = base x height = 18 * 6 = 108
The answer is B) 108.
