Answer:
B. Investment Y has a higher present value.
Explanation:
The cash inflows are given in the question for Investment X and Investment Y
Plus we know that the cash inflows and the number of years has an indirect relation
That means if the cash flows are the same for year 1 and 2 and in year 3 and year 4 so year 1 and year 2 present value would be higher as compared with the last year present value
Since in the question Investment Y has higher cash inflows in starting year but in Investment X has higher cash inflows in last year that interprets Investment Y has a higher present value
Be reasonable
Explanation:
Be reasonable where u use logic and strong motives which consequently improves your way of thinking
I hope that I answered u
This is an example of Selection bias.
<h3>What is Insurance?</h3>
Insurance exists as a way to manage your risk. When you buy insurance, you purchase security against unexpected financial losses. The insurance company reimburses you or someone you determine if something bad happens to you. If you have no insurance and an accident occurs, you may be accountable for all corresponding costs.
Insurance plans exist beneficial to anyone examining to protect their family, assets/property, and themselves from financial risk/losses: Insurance plans will permit you to expend for medical emergencies, hospitalization, contraction of any illnesses and treatment, and medical care needed in the future.
Selection bias happens if those who enroll in HMOs are either more or less likely to utilize health services after changing for factors utilized to set rates (e.g., Medicare sets HMO rates based on age, sex, Medicaid eligibility, and institutional status).
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The cumulative difference between reporting inventory at LIFO rather than FIFO is commonly referred to as the LIFO reserve
<h3>What is
LIFO reserve?</h3>
Generally, LIFO reserve is an accounting term that represents the difference between the cost of inventory calculated using the first-in, first-out (FIFO) method and the cost calculated using the last-in, first-out (LIFO) method for the purposes of bookkeeping.
In conclusion, The LIFO reserve is a term that is widely used to refer to the accumulated discrepancy that results from reporting inventory using the LIFO method rather than the FIFO method.
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