Answer:
The manager should pick project B
Explanation:
To determine what decision the manager should make, the NPV of both projects should be calculated.
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
NPV for project A
Cash flows:
Year 0 = $-335,000
year 1 = $140,000
year 2 = $150,000
year 3 = $100,000
I = 6%
NPV= $14,536.87
NPV for project B
Cash flows:
Year 0 = $-365,000
year 1 = $220,000
year 2 = $110,000
year 3 = $150,000
I = 6%
NPV= $66,389.67
Both projects are profitable but because the firm uses capital rationing , the manager has to pick the now profitbale project, which is project B.
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
As an economy moves into a recessionary period, examples of fiscal policies that act as automatic stabilizers include an increase in transfer payments.
Monetary increase refers to a boom in the size of a country's economy over a period of time. the scale of an economic system is commonly measured by the entire manufacturing of products and services inside the financial system, which is called gross home product (GDP). the financial increase may be measured in 'nominal' or 'real' terms.
The financial increase is a growth in the manufacturing of goods and offerings in a financial system. increases in capital goods, labor force, generation, and human capital can all contribute to the monetary increase.
Learn more about economic increase here:brainly.com/question/1690575
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Answer:
Explanation:
In every single company, the main aim of installing an office equipment is to make profit. After the office equipment made a revenue of $29400, Jing Company incurred expenses of $18500. The value of the equipment was $29400- $18500= $10900. It was sold for $10400 meaning that the net income of the equipment was $10400-$10900= -$500. Therefore, it will incur a net loss of $500.
Answer:
Balance sheet is the correct answer because it tells about the worth of company, its assets, shareholders funds (Equity) and amount borrowed by the company (Liability). Balance sheet is also known as Statement of Financial Position (SOFP)
All the other options tells about the earnings and costs of the company not about the assets and liabilities of the company.
Answer:
Cost of equity = 8.22%
Explanation:
Cost of equity = Dividend per share /current market value + growth rate of dividend
Cost of equity = 2/90 + 6%
Cost of equity = 0.0222 + 6%
Cost of equity =0.0222 + 0.06
Cost of equity = 0.0822
Cost of equity = 8.22%
