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marin [14]
3 years ago
10

You are considering two independent projects. Project A has an initial cost of $125,000 and cash inflows of $46,000, $79,000, an

d $51,000 for Years 1 to 3, respectively. Project B costs $135,000 with expected cash inflows for Years 1 to 3 of $50,000, $30,000, and $100,000, respectively. The required return for both projects is 16 percent. Based on IRR, you should:
a. Accept both projects.
b. Accept Project A and reject Project B.
c. Accept Project B and reject Project A.
d. Reject both projects.
e. Accept either one of the projects, but not both
Business
1 answer:
Harrizon [31]3 years ago
6 0

Answer:

b. Accept Project A and reject Project B.

Explanation:

To verify project viability at a required return rate of 16%, simply calculate the project's net present value at a rate of 16%. If the NPV is positive, then the project should be accepted, otherwise it should be rejected.

Project A:

NPV = -\$125,000 +\frac{\$46,000}{(1+0.16)} +\frac{\$79,000}{(1+0.16)^2} +\frac{\$51,000}{(1+0.16)^3}\\NPV =\$6,038.58

Project A should be accepted.

Project B:

NPV = -\$135,000 +\frac{\$50,000}{(1+0.16)} +\frac{\$30,000}{(1+0.16)^2} +\frac{\$100,000}{(1+0.16)^3}\\NPV =-\$5,535.89

Project B should be rejected.

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You invested $30,000 in BOA, $20,000 in Best Buy, and $50,000 in Harley-Davidson for your portfolio. Betas are 1.8, 1.05 and 1.5
steposvetlana [31]

Answer:

Beta= 1.5

Explanation:

<u>First, we need to calculate the proportional investment of each asset:</u>

Total investment= $100,000

BOA= 30,000/100,000= 0.3

Best Buy= 20,000/100,000= 0.2

Harley-Davidson= 50,000/100,000= 0.5

<u>To calculate the beta of the portfolio, we need to use the following formula:</u>

Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)...

Beta= (0.3*1.8) + (0.2*1.05) + (0.5*1.5)

Beta= 1.5

4 0
2 years ago
Mexican american farm workers in california organized ________ to demand higher pay from their employers
KengaRu [80]
The United Farm Workers union
4 0
2 years ago
Assume that aggregated fact table B is based on the detailed fact table A. Which of the following is FALSE
jeyben [28]

The false statement is E) Table B has more records than Table A

A detailed table is one in which a single record refers to a single fact while in the case of an aggregated table, a single record may refer to more than one fact. In the given case Table B is aggregated table that's why it is not possible that it has more records than table A.

A truth table shops quantitative facts for analysis and is regularly denormalized. A fact desk works with size tables. A reality desk holds the facts to be analyzed, and a measurement table shops facts about the methods in which the statistics in the fact table can be analyzed.

Tables are database items that incorporate all of the records in a database. In tables, records are logically prepared in a row-and-column format much like a spreadsheet. Every row represents a unique record, and every column represents a field inside the report.

Your question is incomplete. Please read below to find the complete question.

Assume that aggregate fact Table B is based on the detailed fact table A. Which of the following is false?

A) a number of dimensions that Table B is connected to are equal to or less than the number of dimensions that Table A is connected to.

B) a number of records in Table B are equal to or less than the number of records in Table A.

C) table B provides an aggregated view of facts in Table A.

D) all dimensions connected to Table B are connected to Table A.

E) table B has more records than Table A.

Learn more about tables here brainly.com/question/12151322

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7 0
2 years ago
Why is a business plan considered a living document?
steposvetlana [31]

Answer:

Explanation:

A Living Document. A business plan is often referred to as a “living document”. This is because a these plans are constantly changing. Whenever new developments in competition, marketing tools, the legal factors which relate to an industry, or others change a business plan must be updated so as to keep relevant.

3 0
3 years ago
Competitive firms hire workers until the additional benefit they receive from the last worker hired is equal to(i)the additional
xeze [42]

Answer:

The correct answer to the following question is option B) both statements i and ii are correct.

Explanation:

First of all the marginal product can be defined as the additional unit of product that a business can produce by using additional unit of input. And marginal revenue product refers to the change that occurs in the total revenue due to the production of additional unit of product.

Any competitive firm would hire additional workers only when the MRPL (marginal revenue product of labor) is greater than the wages paid to that labor and additional cost incurred in hiring those workers and they would stop hiring the workers when the MRPL is equal to the cost paid to the workers.

4 0
3 years ago
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