1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
astra-53 [7]
3 years ago
10

Projects A and B are mutually exclusive and have an initial cost of $82,000 each. Project A provides cash inflows of $34,000 a y

ear for three years while Project B produces a cash inflow of $115,000 in Year 3. Which project(s) should be accepted if the discount rate is 11.7 percent? What if the discount rate is 13.5 percent?
Business
1 answer:
MrRissso [65]3 years ago
7 0

Answer:

If discount rate is 11.7% Project B should be accepted.

If discount rate is 13.5% both projects should be rejected

Explanation:

If the Net present value of Project A is higher than that of project B, we will accept project A and vice versa.

<u>Under 11.7% Discount Rate</u>

Net Present Value-Project A = -82000 + 34000 / 1.117  +  34000 / 1.117²  +   34000 / 1.117³  = $85.099

Net Present Value-Project B = -82000 + 115000 / 1.117³ = $516.029

Project B should be accepted as it has a higher NPV.

<u />

<u>Under 13.5% Discount Rate</u>

Net present Value-Project A = -82000 + 34000 / 1.135 + 34000 / 1.135² + 34000 / 1.135³   = - $2397.49

Net Present Value-Project B = -82000 + 115000 / 1.135³  = - $3347.91

Both projects should be rejected as both have negative NPVs

You might be interested in
Black &amp; decker uses a __________ strategy to reach the "do-it-yourself" market with the black &amp; decker brand name and th
sp2606 [1]
Advertising campaign strategy
3 0
3 years ago
A customer touch point for abacus airlines would be an item such as ________. a mechanic's ability to service the airplanes the
eduard
<span>A customer touch point for abacus airlines would be an item such as reservation desk. 

A customer touch point is a point in the process where a consumer and the organization exchange information, finish providing the service, or handle transactions. At the reservation desk, the customer and the business are focusing on the business and service transactions.  </span>
3 0
3 years ago
The total combines customer lifetime values of all of the company’s customers is called - Options
swat32
I'm am pretty sure the answer is b.
8 0
3 years ago
The fundamental economic problem is meeting people’s virtually unlimited needs and wants with limited resources.Question 3 optio
Solnce55 [7]

Answer:

The correct answer is: True.

Explanation:

The basic or fundamental problem in economics is people have unlimited wants and needs and the resources are limited. These limited resources have alternative uses and are used to satisfy unlimited wants and needs.

These resources are to be used rationally in such a way that total utility or consumption derived is maximized.

7 0
3 years ago
Economic activities that involve the extraction of natural resources, such as lumbering, fishing, mining, and agriculture, are c
ASHA 777 [7]
Activities that do that are called adolescent
3 0
2 years ago
Read 2 more answers
Other questions:
  • Assuming diminishing returns, a. the increase in output growth from an increase in the saving rate rises over time, and that, ot
    10·1 answer
  • Firms minimize​ costs; thus, a firm earning​ short-run economic profits will choose to produce at the minimum point on its avera
    6·1 answer
  • Zola is very skilled with Microsoft and Apple, and she knows different methods of programming. This knowledge will help make Zol
    8·2 answers
  • What action involves reconfiguring or redesigning work, jobs, and processes for the purpose of improving cost, quality, service,
    14·1 answer
  • Sprinkle Co. sells its product for $60 per unit. During 2016, it produced 60,000 units and sold 50,000 units (there was no begin
    8·1 answer
  • The underwriting syndicate of a bond offering is a group of investment banks, merchant banks, and the merchant banking arms of c
    7·1 answer
  • The ABC Lawn Company aims for a high number of clients that result in high profits. To meet its goal ABC markets its landscaping
    7·1 answer
  • Kaye Blanchard is 50 years old. She has $48,000 of adjusted gross income and $11,600 of qualified medical expenses. She will be
    14·1 answer
  • Jamie is single. In 2020, she reported $108,000 of taxable income, including a long-term capital gain of $5,800. What is her gro
    6·1 answer
  • in the gilded age, how did monopolies affect many small businesses? monopolies helped small businesses grow.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!