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
Otrada [13]
3 years ago
11

Assume you have two projects with different lives. Project A is expected to generate present value cash flows of $5.2 million an

d will last 7 years. Project B is expected to generate present value cash flows of $3.8 million and will last 5 years. Given a required return of 9%, Project A has an equivalent annual annuity of __________ which is __________ than Project B.
Business
1 answer:
Alex787 [66]3 years ago
8 0

Answer:

$1,033,190.69 ; better

Explanation:

Given:

Present value of cash flow of Project A (PV) = $5,200,000

Maturity (nper) = 7 years

Required return (rate) = 9%

Annual annuity (pmt) can be computed using spreadsheet function =pmt(rate,nper,PV,FV). Substituting the values, we get,

=pmt(0.09, 7, -5200000)

=$1,033,190.69

FV is 0. Present value is negative as it's cash outflow.

Annual annuity of Project A is $1,033,190.69

Project B:

Given:

Present value of cash flow of Project A (PV) = $3,800,000

Maturity (nper) = 5 years

Required return (rate) = 9%

Annual annuity (pmt) can be computed using spreadsheet function =pmt(rate,nper,PV,FV). Substituting the values, we get,

=pmt(0.09, 5, -3800000)

=$976,951.34

FV is 0. Present value is negative as it's cash outflow.

Annual annuity of Project B is $976,951.34

Annual annuity of Project is more than that of Project B, So Project A is better than Project B.

You might be interested in
When an organization has employees of different backgrounds and skill sets, it has greater and will be better than monocultural
creativ13 [48]

N.B: I don't understand your question fully and neither can i find the complete question anywhere on the internet so im going to answer this sentence and hope it helps you.

Answer:

True

Explanation:

When a company has employees from different backgrounds and with different skills set, it helps the company come up with a lot of innovations that cuts across different cultures, thereby expanding their own range of services and/or goods. Also it helps in problem solving as each employee can come to the table with various ways of solving a problem.

This situation can be called diversity of thoughts.

Cheers.

7 0
3 years ago
When there are differences between the cash balance per bank and the cash balance per books, this is due to:____.
QveST [7]

When there are differences between the cash balance per bank and the cash balance per book, this is due to the Bank reconciliation statement.

The key difference between cash book balance and bank statement balance is that cash book balance shows the cash balance recorded in a company's cash book while bank statement balance is the cash balance recorded by the bank in its bank records. is.

Such fees and charges are charged to the savings cash balance book, but no entry is made in the cash book unless the company receives the savings book from the bank and records these entries. This creates a difference between the two balances.

Learn more about cash balance at

brainly.com/question/24979735

#SPJ4

6 0
2 years ago
The Sherman Antitrust Act A. was concerned with self-interest dominated Nash equilibriums in prisoners' dilemma games. B. restri
dolphi86 [110]

Answer:

B. restricted the ability of competitors to engage in cooperative agreements

Explanation:

The Sherman Antitrust Act of 1890 is a US legislation that regulates the level of competition that exists among businesses. It was passed by the Congress when Benjamin Harrison was president. This act is aimed at protecting trade and commerce from illegal restraints and monopolies. It was enacted by the 51st Congress of the United States. This act was introduced by John Sherman in the senate house.

8 0
3 years ago
Read 2 more answers
. My typing speed isn't as fast as I would like, but this position doesn't require me to use the computer. b. To tell the truth,
AlekseyPX

Answer:

b

Explanation:

7 0
3 years ago
You are considering investing in one of the these three stocks:Stock Standard Deviation BetaA 20% 0.59B 10% 0.61C 12% 1.29If you
Drupady [299]

Answer:

The correct option is B.

Explanation:

Risk aversion is a situation where investor like returns and dislike the risk. The higher the risk, higher the expected return an investor will demand.

In this situation, will look at the standard deviation (SD). The larger the SD, it states that outcome will be dispersed widely and smaller SD, states that the outcome or result will be more tightly cluster around the expected value. So, because of this will be choosing the Stock B for isolation and Stock A for portfolio which well diversified.

4 0
3 years ago
Other questions:
  • Who is the president of malaysia
    10·2 answers
  • HURRY HURRY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    7·2 answers
  • Japan does not allow more than 100,000 automobiles to be imported into the country because they feel they are protecting domesti
    6·1 answer
  • In an interview with a television channel, the Public Relations manager of KP Oil explained what his company intended to do to t
    8·1 answer
  • Outline the​ five-step sequence in a decision​ process
    15·1 answer
  • In recent times, only __________ median income of about $56,000 exceeded that of the united states at about $50,000.
    11·1 answer
  • Estimated cash flows appear below for an investment project. The project is required rate of return (IRR) is 11.40%. What is the
    7·1 answer
  • The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year a
    15·1 answer
  • ​A television network decides to run a series of news stories highlighting the need for stronger regulations over gun sales and
    12·1 answer
  • Yields on municipal bonds are typically ___________ yields on corporate bonds of similar risk and time to maturity.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!