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Reika [66]
3 years ago
14

Joe and Rich are both considering investing in a project that costs $25,500 and is expected to produce cash inflows of $15,800 i

n Year 1 and $15,300 in Year 2. Joe has a required return of 8.5 percent but Rich demands a return of 12.5 percent. Who, if either, should accept this project?A) Joe, but not RichB) Rich, but not JoeC) Neither Joe nor RichD) Both Joe and RichE) Joe, and possibly Rich, who will be neutral on this decision as his net present value will equal zero
Business
1 answer:
miv72 [106K]3 years ago
8 0

Both Joe and Rich should accept this project.

D) Both Joe and Rich

<u>Explanation:</u>

NPVJoe= $25,500 + $15,800 / 1.085 + $15,300 / 1.085^2

NPVJoe= $2,058.88

NPVRich= –$25,500 + $15,800 / 1.125 + $15,300 / 1.125^2

NPVRich= $633.33

Here Joe and Rich both invested a total amount of $25,500 and they are expected to get cash inflows of $15,800 and $15,300 in the year 1 and year 2 respectively they both has their own different rates of return i.e. 8.5% and 12.5% so we can calculate the net principle value of Joe is $2,058.88 and that of Rich is $633.33.

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PB9.
Drupady [299]

Answer:

transferred out  = 1550 units

Explanation:

given data

beginning WIP inventory = 600 units

received = 1,500 units

end of month with process =  550 units

to find out

transferred out

solution

we get here transferred out by the given equation that is

Units in Work in process at the end of the month = Beginning WIP inventory + Units receive or started - transferred out   ..................1

put here value we will get

550 = 600 + 1500 - transferred out  

transferred out  = 1550 units

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3 years ago
Gabrielle does not want to work a nine-to-five job. Still, she has to work to support herself. She accepts a job as a restaurant
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gayaneshka [121]

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5 0
2 years ago
Sweet Sue Foods has bonds outstanding with a coupon rate of 5.44 percent paid semiannually and sell for $1,930.36. The bonds hav
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Answer:

Current yield=5.6%

Explanation:

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