1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
klasskru [66]
3 years ago
6

Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (790,000 ) $ (120,000

) $ (120,000 ) $ (1,820,000 ) Present value of cash inflows 1,121,300 168,300 182,000 2,427,200 Net present value $ 331,300 $ 48,300 $ 62,000 $ 607,200 Life of the project 5 years 7 years 6 years 6 year
Business
1 answer:
goblinko [34]3 years ago
7 0

Answer:

Explanation:

1. The formula to compute the profitability index is shown below:

Profitability index = Net present value ÷ investment required

For Proposal A, it would be

=  $331,300 ÷ $790,000

= 0.42

For Proposal B, it would be

=  $48,300 ÷ $120,000

= 0.40

For Proposal C, it would be

=  $62,000 ÷ $120,000

= 0.52

For Proposal D, it would be

=  $607,200 ÷ $1,820,000

= 0.33

2. The proposal rank preference is shown below:

Proposal     Profitability index    Rank

A                  0.42                         Second

B                  0.40                         Third

C                  0.52                         First

D                  0.33                          fourth

So, it would be C, A, B and D

You might be interested in
The efforts of employees who work directly to convert direct materials into the finished product are referred to as ______
Alex_Xolod [135]

Answer:

Direct labor

Explanation:

The role of direct labor is to convert direct material into the finished products. Without the help of direct labor, it is impossible to convert the direct material into the finished goods.

Here, the direct material means the labor which works on manufacturing a product which is directly related to the production level. The allocation of direct labor is done based on the number of hours worked or product.

Hence, The efforts of employees who work directly to convert direct materials into the finished product are referred to as direct labor

7 0
3 years ago
Piper Corporation’s standards call for 1,000 direct labor-hours to produce 250 units of product. During October the company work
jekas [21]

Answer: C. 1200 hour

Explanation:

It is indeed 1200 hours because the units produced increased by 20% and therefore, theoretically, so should the time.

5 0
3 years ago
g Marginal revenue product measures the rev: 06_21_2018 Multiple Choice amount by which the extra production of one more worker
Anton [14]

Answer: The correct answer is the first statement.

Explanation: Marginal revenue product measures the amount by wich the extra production of one more worker increases a firm's total revenue.

<u>It is an economic term used to describe the change in total income that results from a unit change of one type of input variable. There are many types of input variables that you can change, such as adding an employee or a new machine.</u>

5 0
3 years ago
Henry works at a restaurant. One of his best chefs has just called in sick minutes before the dinner rush, and Henry needs to ma
PSYCHO15rus [73]

Answer:

just do math

Explanation:

4 0
3 years ago
A firm will experience a loss when its revenue is less than its expenses
tatiyna
The answer for this question is True
5 0
3 years ago
Other questions:
  • Anika plans to purchase a Janome embroidery machine. The retail price for the Janome 12 model is $10,000 plus $500 for lifetime
    8·1 answer
  • A recent study on crime rates examines whether crime depends on sunshine. A researcher hypothesizes that sunshine makes people h
    15·1 answer
  • 1. Stock Values. Integrated Potato Chips paid a $2 per share dividend yesterday. You expect the dividend to grow steadily at a r
    14·1 answer
  • A company makes three products that have the following characteristics: Product A sells for $75 but needs $50 of materials to pr
    7·2 answers
  • Assume that Clampett, Inc., has $200,000 of sales, $150,000 of cost of goods sold, $60,000 of interest income, and $40,000 of di
    15·1 answer
  • Not recording the prepaid rent used causes? A.expenses to be too high b. Revenue to be too high c. Assets to be too high d. Asse
    13·2 answers
  • Which one of the following is an example of the circular flow model and shows the interdependence of households and firms? a. Th
    10·1 answer
  • Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and compet
    5·1 answer
  • 4. the interest is computed on the principal and also on the accumulated past interests.
    12·1 answer
  • Which of the following modifications to the list of assets and liabilities below would result in a net worth of $100,000? Recrea
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!