Answer:
- Project A and C given a budgetary constraint of $15,000.
- Pick all projects if there was not constraint as they all have positive NPVs.
Explanation:
Find the NPVs of the various projects.
Project A:
= Present value of inflows - Cost
= 4,000 / 1.085 + 4,000 / 1.085² + 4,000 / 1.085³ - 7,500
= $2,716.09
Project B:
= 3,000 / 1.085 + 4,000 / 1.085² + 3,000 / 1.085³ - 8,000
= $511.52
Project C:
= 2,500 / 1.085² - 2,000
= $123.64
Seeing as she has only $15,000 to embark on projects, she should pick projects A and C.
Project A should be picked because it has the highest NPV and Project C should be picked because it can still be invested in after Project A given budgetary constraints.
Answer: Critical Design Review
Explanation:
A Critical Design Review is referred to as a review that's fine in order o ensure that a system can be able to move into fabrication, and test and also ensure that the stated performance requirements are met.
The approved detail design resulting from the critical design review serves as a basis for making the decision to begin production.
Imari Brown should choose $1,000 tax credit since it reduces her taxes by $1,000. Tax credit is a big help for her because it can also reduced her tax by $1000, it is a big saving to her since she still attending community college.
When the price of the good is fixed at a level below the current (equilibrium) price, there will be a shortage of the good and the good will have to be effectively rationed. As in the question above, the consumer is worse off because she is not able to attain her utility maximizing point.
