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
Small businesses deal with different issues than large companies, this is because they do not occupy the same space.
<h3>What is management?</h3>
Management is the coordination of a task or organization and the administration to achieve a goal. It includes setting the organization's goal and working towards achieving it.
Small businesses do not face the same problems as established businesses. The bigger the business the bigger the task.
Therefore, small businesses deal with very different issues than large companies or charities
Learn more on management here,
brainly.com/question/1276995
<span>One tip for working with colleagues from different generations is to multiple choice stick to basic technology for teamwork.
A. defer to the oldest team member.
B. avoid discussions of politics.
C. focus on individuals and their goals.
D. avoid verbal opposition.
Hope This Helps :) </span>
Answer : I SAID THE B, CANNOT BE DETERMINED ....
Explanation:
FOR 2 DIRECT LOBOR HOURS!
