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lesantik [10]
3 years ago
14

You are considering two mutually exclusive projects. Both projects have an initial cost of $52,000. Project A produces cash infl

ows of $25,300, $37100, and $22,000 for years 1 through 3, respectively. Project B produces cash inflows of $43,600, $19,800 and $10,400 for years 1 through 3, respectively. The required rate of return is 14.2 percent for Project A and 13.9 percent for Project B. Which project should you accept and why? a) Project A because it has the higher required rate of return b) Project A because it has the larger NPV c) Project 8, because it has the largest cash inflow in year 1. d) Project B; because it has the lower required rate of return
Business
1 answer:
ivolga24 [154]3 years ago
3 0

Answer:

b) Project A because it has the larger NPV

Explanation:

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

Project A

Cash flow in year 0 = $-52,000

Cash flow in year 1= $25,300,

Cash flow in year 2 = $37100

Cash flow in year 3= $22,000

I = 14.2

NPV = $13,372.95

Project B

Cash flow in year 0 = $-52,000

Cash flow in year 1= $43,600

Cash flow in year 2 =, $19,800

Cash flow in year 3= $10,400

I = 13.9

NPV = $8,579.62

The NPV of project A is larger than that of project B, so, project A is more suitable

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Ownership is held in Severalty Ownership when all the rights of ownership in a particular piece of property are held by one person.

When a single person, business, or other entity owns the property, this is known as Severalty Ownership. The name of the phenomenon refers to the cutting off of a solitary owner from other owners' rights to ownership.

The property's owner in severalty is the only person with ownership rights, and they are also the only ones with the authority to sell, bequeath, encumber, or otherwise transfer all or any portion of those rights to another person.

Those parties are known as co-owners or concurrent owners when they hold title to a piece of real estate jointly or severally. Depending on the state, co-owners may own a property as tenants by the entirety or communal property if they are married or part of a legal civil union.

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7 0
2 years ago
If you want to move into an upper-level management position with a major hotel chain, would you pursue education? Explain.
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Answer:

The correct answer will always depend on the person, but and explanation quite objective is below.

Explanation:

To begin with, it will always depend on the person who is in front of that situation but to be objective, the person should seek for what might bring him better opportunities in the future and use that choice to make those opportunities happen later on. So that will explain that if the person believes that quiting the education and accepting the job so that he can grow with the experience and with the get better and a what he does and build a professional career from that then he should choice to not pursue education and seek for the job and its opportunities.

8 0
3 years ago
When is liability insurance needed?​
gtnhenbr [62]

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When you cause an accident that damages another vehicle or hurts someone.

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4 0
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You are an executive with an internet merchandizing company. Azzamon Inc. You have been assigned the task of analyzing whether t
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Answer:

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Consultant Fee:

Irrelevant.

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2 years ago
A loan to a company or government that pays investors a fixed rate of truth over a specific timeframe is known as:
VLD [36.1K]

Answer:

4. Bonds

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Bonds are debt instruments used by corporates and governments to raise capital. Bonds are long-term sources of capital for a business and government and also an investment option to investors.

When the government or corporate issues bonds, they promise to pay the principal amount when the bond matures. Maturity ranges from 5 to 30 years. The bond issuer also commits to pay interest on regular intervals until the bonds mature. The interest to be paid is based on the coupon rate or interest rate as specified by the bond.

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