Taxes are automatically withdrawn from paychecks.
Evidence of one's claim to authority or competence, such as a diploma, degree, certification, or license is known as the credential.
<h3>What is the evidence?</h3>
Evidence is the term that means to show or to prove that a particular thing is true or is in existence. For better understanding, a few illustrations can be taken. Like They found evidence of a robbery, in the room footprints of three persons present, and many more.
In any courtroom for making the case strong, one has to present evidence that is real like fingerprints, blood samples, DNA, a knife, a gun, and other physical objects.
There are basically two types of evidence, which include Oral and Documentary evidence. Documents that include electronic records are documentary evidence.
Thus, all the names given in the statement are of documentary evidence or credential.
Learn more about evidence from here:
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Answer:
d. Choose Option B because it has a higher NPV
Explanation:
The computation is shown below:
For Option A:
Investment = $10 million
Present Value of cash flows = Cash flow ÷ Discounting rate
= $2 ÷ 10%
= $20 million
Now
NPV = $20 - $10
= $10 million
We know that
IRR is the rate at which the NPV will be zero
So, 2 ÷ r - 10 = 0
r = 20%
For Option B:
Investment = $50 million
Present Value of cash flows = $6.5 ÷ 10% = $65 million
NPV = $65 - $50 = $15 million
we know that
IRR is the rate at which the NPV will be zero
So, 6.5÷ r -50 = 0
r = 13%
Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.
However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage