Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The initial investment for each project is $50,000. Project A will generate cash inflows equal to $15,625 at the end of each of the next five years; Project B will generate only one cash inflow in the amount of $99,500 at the end of the fifth year (i.e., no cash flows are generated in the first four years). The required rate of return of Ace Inc. is 10 percent.
To determine which project to choose we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
Project A:
Io= -50,000
Year 1to 5= 15,625
NPV= $9,231.04
Project B:
Io= 50,000
Year 5= 99,500
NPV= -50,000 + 99,500/1.10^5= 11,781.67
The highest NPV is the best option. Therefore, project B is the best.
The answer to your problem is D) none of these.
<span>This tendency of hers exemplifies a fundamental attribution error. The fundamental attribution error, FAE, this theory explains that people use internal </span>characteristics to explain behavior rather than external factors. With FAE, people tend to overemphasizes person characteristics and ignore small factors when judging others behavior in various situations.
1. Unions have been in decline since the 1960s because of
Answer: <u>A. foreign competition.</u>
Explanation: Unions were often conducted in the past in order to protect workers from<em> "arbitrary decisions" </em>of employers. Such decisions resulted to the<em> laying off of workers </em>and<em> cutting of wages</em>. On the contrary, business owners have a different goal. They wanted to make more profit by cutting the wages, so they didn't like the unions. However, unions have been in decline in the 1960s, mainly because of international/foreign competitions. This is because the "bargaining power of the unions as they represent the employees were reduced."
2. When a bank evaluates a person for a loan, what does the word "capacity" refer to?
Answer: <u>C. The ability to make payments on time.</u>
Explanation: A bank evaluates a person for a loan according to his "capability to pay" the loaned amount. It is not according to his willingness to pay, but to his<em> "ability to return the money</em>." In order to know whether a person is capable of repaying the money on time, the bank analyzes the borrower's gross income and his debt.
