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fredd [130]
3 years ago
6

A company seeking investment opportunities has collected the following​ information:Project AProject BProject CProject DInitial

investment​$400,000​$250,000​$150,000​$270,000PV of cash inflows​$570,000​$295,000​$210,000​$282,000Payback period​ (years)3.63.04.753.5NPV of project​$170,000​$45,000​$60,000​$12,000Profitability index1.431.181.401.04If the company makes a decision based on the net present​ value, which project will be​ selected?

Business
1 answer:
ollegr [7]3 years ago
6 0

Answer:

Project C

Explanation:

If we make the decision based on the net present value (NPV) then we will choose the project that has the greatest NPV.

NPV is the sum of the present value of project´s cash flows. To have the present value of a cash flow (inflows and outflows) we use a discount rate and the year of the cash flow (the formula is attached).  

When we have al cash flows in present value, we sum them including the investment (which is most of the time negative and it is in present value so we don´t have to transform it). This is the NPV (formula attached).

If the NPV is greater than cero, then the project is creating value, the investors will recover the investment and will have profits. So if the NPV of project is greater than the NPV of another, that project is creating more value.

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b. Roma and Taylor

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In this case each attorney is liable for his negligence, so Taylor will be liable for not appearing in court .

Roma is his supervisor, and he will also be liable because he is responsible for Taylor's performance.

The other attorneys in the firm will not be liable, because there is personal liability. When they are not directly involved in negligence, they will not be liable to Umberto.

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Owen is considering giving a large charitable contribution to an organization in the current year. Owen's adjusted gross income
oee [108]

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Explanation:

There is a limit on the amount of charitable contribution that a taxpayer can claim as deduction and it depends on the type of property that a taxpayer donates and nature of charity organization. A taxpayer can deduct up to 60% of adjusted gross income (AGI) in the case of cash contributions to public charity. When he contributes capital gain property, he can deduct up to 30% of adjusted gross income in the case of public charity. When he contributes capital gain property to private non operating foundation, he can deduct up to 20% adjusted gross income.

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3 years ago
An obstacle that prevents movement or progress in communication is called
alexgriva [62]

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2 years ago
An economics professor is discussing a measure of inflation over time based on a basket of goods comprised of all the components
Jlenok [28]

Answer:

GDP Price Deflator

Explanation:

GDP price deflator is a measure of the general changes in the price level of all the finished goods and services in a country in a period.  While GDP is a measure of the total output in an economy, the GDP price deflator shows the extent to which prices changed in a period. In proving the effects of price changes, the GDP deflator identifies a base year then compares the current prices to base year prices.

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How are jobs affected by supply and demand ?Explain how changes in supply and demand couple impact employment and jobs?
Ksju [112]

Answer:

Please see explanation below

Explanation:

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b. Change in demand refers to either an increase or decrease in demand for a particular good or service due to changes in consumer tastes, income level, population, price of substitutes etc; while change in supply is when suppliers decided to either increase or decrease their production or output due to changes in technology, process automation, change in the number of competitors in the market, taxes, production costs etc.

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