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Alchen [17]
4 years ago
15

When several alternative investment proposals of the same amount are being considered, the one with the largest net present valu

e is the most desirable. If the alternative proposals involve different amounts of investment, it is useful to prepare a relative ranking of the proposals by using a(n):a. average rate of return b. consumer price index c. present value index d. price-level index
Business
1 answer:
Damm [24]4 years ago
7 0

Answer:

The correct answer is C. Present Value Index.

Explanation:

The present value (PV) is the value that today has a certain flow of money that we will receive in the future.

The present value is a formula that allows us to calculate what is the value of today that has an amount of money that we will not receive right now but later, in the future. To calculate the VP we need to know two things: the money flows that we will receive (or that we will pay in the future since the flows can also be negative) and a rate that allows to discount these flows.

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You want to buy a house and will need to borrow $255,000. The interest rate on your loan is 5.89 percent compounded monthly and
Brut [27]

Answer: $1,626

Explanation:

A Mortgage payment is a type of annuity so the Present Value of an Annuity formula can be used to calculate this.

The Period is 12 months so adjustments need to be made to the interest rate and the period.

Period.

= 25 years * 12 months

= 300

Interest Rate

= 5.89/12

= 0.4908%

Present Value of the Annuity is the mortgage amount of $255,000

Present Value of Annuity is,

P = PMT ( 1 - ( 1 + r)^-n) / r

Where,

P = Present Value

PMT = payment per period

r = Interest rate

n= no. of periods

255,000 = PMT ( 1 - (1+0.4908%)^-³⁰⁰) / 0.4908%

255,000 = 156.8456 PMT

PMT = 255,000/156.8456

= $1,625.80

= <u>$1,626</u>

4 0
3 years ago
Select all the guidelines you should follow when changing the format of a spreadsheet.
Andrew [12]

Answer:

b, c, e hope this helped

6 0
3 years ago
Read 2 more answers
A company sells two products with information as follows:
sattari [20]

Answer:

True.

Explanation:

The Contribution margin i.e Sale price less Variable Cost per unit for product A is (15-4) is $11 & for product B is ( 21-13) is $8. for making 4 units of product A we need three machine hours, so if we divide units by machine hours only 0.9 unit of A can be made in an hour  while we can made 5 units in 0.7 hours pf product B, so if we divide 5 by 0.7, approximately 7 unit of B can me made in an hour.

Thus, in the production of 1 hour we can make $10 from product A while we can make $ 57 from product B.

Product A Product B

S.P  $15.00   $21.00  

V.C  $4.00   $13.00  

Contribution Margin Per unit  $11.00   $8.00  

Units Produce Per hour Production 0.9 7

CM Per hour  $10.27   $57.14  

8 0
4 years ago
Which traits are common in all four career pathways of the Information Technology field? Check all that apply.
Allisa [31]

Accuracy and attention to detail, Problem solving and critical thinking skills, Knowledge of programming language .

<u>Explanation: </u>

It is a technological area in which a person learns how to develop computer hardware, including PCs, laptops, tablets, processing, networking, and other hardware parts. Another field of study in IT is Management Information Systems (MIS).

The IT industry's career paths can be categorized equally in the two primary field’s hardware and software areas  

In hardware, there is Production, maintenance, research and development, and strategic planning.

In software, there is manufacturing, development, programming, software testing, and maintenance and support under software.  

Computer operations, administration of databases, sales / marketing and data centre management are connected areas.

4 0
3 years ago
At the beginning of the year (January 1), Buffalo Drilling has $12,000 of common stock outstanding and retained earnings of $7,1
Mrrafil [7]

Answer:

                                Statement of stockholders' equity

                              at the end of the year (December 31)

                                     <u>Common Stock</u>        <u>Retained Earning</u>       <u>Total</u>

Opening Balance              $12,000                       $7,100               $19,100

Income for the year                                                $7400              $7400

Dividend Paid                                                        ($2,100)             ($2,100)

Common stock issuance  <u> $6,900  </u>                  <u>                 </u>           <u> $6900  </u>

End of the year Balance    $18,900                    $12,400             $31300

3 0
3 years ago
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