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katrin2010 [14]
3 years ago
7

AA Companies has identified two mutually exclusive projects. Project A has cash flows of - $20,000, $5,000, $10,500, and $11,500

for Years 0 to 3, respectively. Project B has a cost of $20,000 and annual cash inflows of $9,500, and $16,000 for Years 2 to 3, respectively. At what rate would you be indifferent between these two projects
Business
1 answer:
nexus9112 [7]3 years ago
8 0

Answer:

At the Internal Rate of Return (IRR).

Explanation:

The Internal rate of return is the Interest rate that will make the Present Value of Cash Flows equal to the price or cost of the initial investment. This rate gives a Net Present Value of zero.

If at that rate both Project A and Project B give a Net Present Value of zero, you will be indifferent (the choice is the same irregardless of the alternative chosen).

Project that provide for a return greater than the Internal Rate of Return must be chosen.

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Keating Co. is considering disposing of equipment with a cost of $52,000 and accumulated depreciation of $36,400. Keating Co. ca
Nuetrik [128]

Answer:

$12,750

Explanation:

The computation of net differential income is shown below:-

For computing the net differential income first we need to find out the net income if equipment is sold and net income if offer lease is accepted which is given below:-

Net income if equipment is sold = Sales consideration - Commission

= $25,000 - ($25,000 × 7%)

= $25,000 - $1,750

= $23,250

Now,

Net income if offer lease is accepted = Lease amount - Repair, insurance and property tax expenses

= $46,000 - $10,000

= $36,000

So,

Net differential income from the lease alternative = Net income if offer lease is accepted - Net income if equipment is sold

= $36,000 - $23,250

= $12,750

4 0
3 years ago
Imagination Museum is holding nominations for its board of directors. It is the first time that over half of the positions are v
NeX [460]

Answer:

E- Gender balance

Explanation:

Gender balance is an important consideration in having a good board for a number of reasons.

  • Gender balance provides diversity of thought, contributing to better decisions being made. This diversity of thought contributes to better stakeholder representation as well as up to pace evolution with the market.
  • Gender balance as well, brings together strengths more expressed in each gender. For instance, men are more objective and women function better at defining responsibilities . Bringing together individual strengths, creates a stronger team and increases efficiency of the board.

  • Gender diversity also increases access to various essential skills such as operational experience, knowledge of the industry.

6 0
3 years ago
"suppose you inherited $870,000 and invested it at 8.25% per year. how much could you withdraw at the beginning of each of the n
Juliette [100K]

I guess the correct answer is $83,386.89.

If you inherited $870,000 and invested it at 8.25% per year, the value you could withdraw at the beginning of each of the next 20 years is $83,386.89.

7 0
4 years ago
The strategy in which a company sells its exports to another country at a lower price than it sells the same product in its dome
Step2247 [10]

Answer:

Dumping

Explanation:

Dumping is protectionist strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market. Dumping is usually associated with a substantial volume of export of a product, it often endangers the financial viability of the product's manufacturer or producer in the importing nation.

6 0
3 years ago
Using the picture of the supply and demand curves below, identify the point which
Doss [256]

Answer:

c is the correct represent the equilibrium price if I am not wrong

Explanation:

<em>sry </em><em>if </em><em>I </em><em>a</em><em>m</em><em> </em><em>wrong</em>

8 0
3 years ago
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