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hichkok12 [17]
3 years ago
11

Your company is considering two mutually exclusive projects. Project A has an initial cost of $80,000 and generates expected cas

h flows of $25,000 per year for six years. Project B has an initial cost of $80,000 and generates expected cash flows of $60,000 per year for two years. The firm's cost of capital is 12.00%. Determine which project you would choose.
Business
2 answers:
katovenus [111]3 years ago
8 0

Answer:

The company should accept Project B because it generates more value per year as compared to Project A.

Explanation:

Explanation can be seen in the file attached.

Download docx
maw [93]3 years ago
7 0

Answer:

Choose Project A

Explanation:

To choose between two mutually exclusive projects we will use two approaches NPV approach .

Under NPV accept project if NPV is positive and has higher NPV.

Project A NPV

-80 000 + 25000/1.12+25000/1.12^2+25000/1.12^3+25000/1.12^4+25000/1.12^5+25000/1.12^6 = -80000+22321.43+19929.85+17794.51+15887.95+14185.67+12665.78

          =$22,785.19

Project B NPV

- 80 000 + 60000/1.12 ^1+60000/1.12^2 = $21,403.06

Choose A as it has higher NPV.

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Anna35 [415]

Correct/Complete Question:

In e-business, secure web applications are one of the critical security controls that each organization must implement to reduce risk. True or False

Answer:

True

Explanation:

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In e-commerce (electronic commerce), websites are used to conduct business, orders, payment, deliveries, etc. Security of this website is important so as to protect the e-business firm and its customers from  various cyber-crimes like credit card phishing, personal information gathering, etc. When an e-business website is secured properly, business is done without fear by customers and also the firm itself. Examples of e-business website include walmart, amazon, bestbuy, etc.

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Sergeeva-Olga [200]
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7 0
2 years ago
Which of the following are examples of how everyday people use the skill of technology in their daily skills
Vitek1552 [10]

The sentence that depicts the examples of how everyday people use the skill of technology in their daily skills is option E. All of these are examples of how everyday people use the skill of technology in their daily skills

<h3>What is technology?</h3>

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Therefore the correct answer is option E. All of these are examples of how everyday people use the skill of technology in their daily skills

The complete question goes thus:

Which of the following are examples of how everyday people use the skill of technology in their daily skills

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6 0
1 year ago
Kelly's Corner Bakery purchased a lot in Oil City six years ago at a cost of $98,700. Today, that lot has a market value of $128
a_sh-v [17]

Answer:

The $623,100 is the amount which  should be used as the initial cash flow for this project

Explanation:

The computation of the initial cash flow is shown below:

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