Which two methods of project analysis are the most biased towards short-term projects?

Sydney wins a prize. She has a choice of receiving a payment of $160,000 immediately or of receiving a deferred perpetuity with

Mamont248 [21]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

She has a choice of receiving a payment of $160,000 immediately or of receiving deferred perpetuity with $10,000 annual payments, the first payment occurring in exactly four years.

A) i= 5%

First, we need to determine the value of the perpetuity four years from now.

Perpetuity= 10,000/0.05= 200,000

Now, we can calculate the present value:

PV= 200,000/(1.05^4)= $164,540.50

B) i= 6%

Perpetuity= 10,000/0.06= $166,666.67

PV= $166,666.67/1.06^4= $132,015.61

C) She should consider her necessities of cash and the value of the products she can purchase now.

5 0

3 years ago

You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 24%. you put the

irinina [24]

I got u need help or nah

7 0

3 years ago

Smythe Co. makes furniture. The following data are taken from its production plans for the year.

Pepsi [2]

Answer:

ii

Explanation:

Number of pounds remain same whether the expected production id 207,000 or 21,000 units. Direct labor hours vary with expected units of production. So, assignement based on direct labor hours is better for assigning costs to eact product

5 0

3 years ago

Baden Company has gathered the following information. Units in beginning work in process 0 Units started into production 37,700

Flura [38]

Answer:

The materials equivalent units is 37,700

Conversion costs equivalent units is 32,480

Explanation:

The equivalent units of production for materials can be computed thus:

Description quantity % of completion Equivalent units

Completed units 29000 100 29000

(37700-8700)

Ending inventory 8700 100 <u> 8700</u>

total equivalent units for materials 37700

The equivalent units of production for conversion costs can be computed thus:

Description quantity % of completion Equivalent units

Completed units 29000 100 29000

(37700-8700)

Ending inventory 8700 40 <u> 3480 </u>

total equivalent units for conversion costs 32480

I applied 100% percentage of completion to ending inventory when determining materials equivalent units and 40% percentage completion when determining equivalent units for conversion cots as it given in the question

6 0

3 years ago

during the 1970s, some economists argued that the cause of the woes of the economy were due to . a.) increase in unemployment, a

mr Goodwill [35]

During the 1970s, some economists argued that the cause of the woes of the economy was due to d.) supply shock due to issues with the supply of oil

<h3>What was the economic crisis of the 1970s?</h3>

This refers to the term that is used to discuss and describe the economic crisis that threatened to engulf the United States financial sector due to certain influences such as the 1973 oil crisis, the fall outs of the Vietnam War under President Johnson and many other factors.

Hence, it can be seen that with these factors in mind, the main argument of some economists was that the cause of the woes of the economy was due to d.) supply shock due to issues with the supply of oil as can be found in option D which is true because of the supply shock which helped to cripple the US economy.

Read more about economic crisis of the 1970s here:

brainly.com/question/1549639

#SPJ1

6 0

1 year ago