Answer:
No
Explanation:
The estimation of the net present value is shown below:
= Present value of all yearly cash inflows after applying discount factor - initial investment
where,
The Initial investment is $180,000
All yearly cash flows would be
= Annual cost savings × PVIFA for 8 years at 12%
= $35,000 × 4.9676
= $173,886
Refer to the PVIFA table
Now set these values to the formula above
So, the value would equal to
= $173,886 - $180,000
= -$6,134
Since the net present value is negative, so the project should not be accepted
<span>Quality Control Inspectors need to keep accurate records of products checked, sometimes carrying out a statistical analysis. They often produce written reports for the production team and have regular meetings to discuss how quality standards can be maintained, or highlight problem areas that require review.</span>
Answer:
I think it's B. There is no need to mark a false start in a full verbatim file.
Answer:
c
Explanation:
nate should have chosen to ask the supplier for verification for the requisition order
Answer:
Project A
Years Cashflows Discount factor Present values
0 250,000 1 -250,000
1-10 45,100 6.144 277,094.40
Sum of all present value=NPV=27,094.40
IRR (by using trial and error method) = 12.4696%
Note: Discount factor for the year 1-10 is calculated by using annuity formula i.e [1-(1+10%)]/10% = 6.144
Project B
Years Cashflows Discount factor Present values
0 (350,000) 1 (350,000)
1 72,500 0.91 65,975
2 65,500 0.83 54,365
3 73,800 0.75 55,350
4 71,500 0.68 48,620
5 69,800 0.62 43,276
6 75,500 0.56 42,280
7 31,000 0.51 15,810
8 47,500 0.47 22,325
9 55,500 0.42 23,310
10 29,200 0.38 11,096
Sum of all present values=NPV=32,407
IRR(by using trial and error method=12.4186%
On the basis of NPV project B is better because it gives higher NPV than project A. Whereas, Project A is better than project B on the basis of IRR because project A has slightly higher IRR than project B.
b)The conflict between both the investment appraisal technique is likely due to different cash flow patterns of both the project. In such situation decision should be based on NPV because this is an absolute measure
