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Maru [420]
3 years ago
11

If investment funds are limited, the net present value of one project should not be compared directly to the net present value o

f another project unless the initial investments in these projects are equal.
A. True
B. False
Business
1 answer:
Kryger [21]3 years ago
5 0

Answer:

False

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

If projects been examined have different initial investments, it doesn't affect comparison between the projects.

Only projects with positive NPV should be chosen and if both projects have a positive NPV, the project with the higher NPV should be chosen

It is only when they have different life spans that comparison might be affected.

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At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a ten-year operating lease agree
iVinArrow [24]

Answer: $20,000

Explanation:

The effect of the lease on Lakeside's earnings will be the difference between the earnings from the lease and the cost of the building which will be depreciation.

Depreciation = 2,300,000/25

= $92,000 per year

Earnings per year;

= 28,000 * 4

= $112,000

Increase in earnings = 112,000 - 92,000

= $20,000

6 0
3 years ago
Assume you are the CEO of Black Diamond, a global organization. You realize that some of the people in your organization are hig
const2013 [10]

Answer:

a. High uncertainty avoidance.

Explanation:

Cultures that have high uncertainty avoidance have a low tolerance for situations that are unclear and vague. They tend to avoid risk, follow laid down rules, and favor well structured environments.

People from cultures with high uncertainty avoidance will be ideal for the Black Diamond team. They will function well in a structured team where members collaborate to achieve set goals.

3 0
4 years ago
A decline in the Index of Supplier Deliveries is typically an indicator of a future _____ in economic production, and a narrowin
Umnica [9.8K]

Answer:

D. slowdown; slowdown

Explanation:

Based on the scenario been described in the question, a decline in the index of supplier deliveries will definitely slowdown economic production because it will lead to delay in delivery and also it is an indicator that future production will be slow. Also, the narrowing of the interest rate spread between 10years treasury note the three months bill is clearly an indicator that future economic production will be slow

4 0
3 years ago
What is the benefit of employing an ethics officer?
Lyrx [107]

Answer:

A. This professional serves as a law-enforcement officer, with the authority to arrest employees who do not abide by the ethics code.

Explanation:

3 0
3 years ago
On July 1, year 2, Metaro Corporation purchased for $108,000, 2,000 shares of Jean Corporation’s newly issued 6% cumulative $20
Verizon [17]

Answer:$1,800

Explanation:

The first step is to calculate the amount of purchase price allocated to the stock and to the warrants. This allocation is made on the basis of the ratios of the relative fair market values of the stock and warrants over the total fair market value of stock and warrants. The combined fair market value is $60 ($50 stock + $10 warrants). The allocation is Warrants:$10/$60 × $108,000 = $18,000 Stock: $50/$60 × $108,000 = $90,000 The final step is to compute the gain or loss on the sale of warrants by comparing the purchase price allocated to the warrants with the selling price of the warrants. The selling price was $19,800 and the allocation of purchase price was $18,000; therefore, the gain on the sale of warrants was $1,800

7 0
3 years ago
Read 2 more answers
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