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
MrRa [10]
3 years ago
14

Here are the cash flows for two mutually exclusive projects: Project C0 C1 C2 C3 A −$ 34,400 +$ 13,700 +$ 13,700 +$ 13,700 B − 3

4,400 0 0 + 43,200 a. At what interest rates would you prefer project A to B?
Business
1 answer:
Natali [406]3 years ago
5 0

Answer:

7.89%

Explanation:

We can find the IRR of Project A and Project B is 9% and 8% respectively

(please see the calculation in excel in attachment)

So if the interest rate below 8% then Project A is more profitable than project B.

You can find NPV of each project follow the decrease in interest rate in the excel attached.

Download xlsx
You might be interested in
Which type of store has high sales volume, little service, and prices 20-40 percent lower than supermarkets?
enot [183]
Gas stations. That would be that.
6 0
3 years ago
n​ mid-2017, an article in the Wall Street Journal noted​ that: ​"The Federal​ Reserve's interest-rate increases​ aren't having
telo118 [61]

Answer:

No

Explanation:

When Congress enacted the Federal Reserve Act in 1913, they stated the FED's mandates:

  1. promote maximum employment
  2. promote stable price

The FED's main objective is to conduct monetary policy in order to stabilize the economy and promote economic growth.

By stabilizing the economy the FED will lower inflation rate, therefore stabilizing prices. When the FED promotes economic growth, the unemployment rate should decrease, hopefully reaching a full employment.

7 0
3 years ago
Tater and Pepper Corp. reported free cash flows for 2015 of $39.1 million and investment in operating capital of $22.1 million.
lara [203]

Answer:

$76.5 million

Explanation:

For computing the EBIT, first we have to do the following calculations

Free cash flow = Operating cash flow – Investment in operating capital  

$39.1 million = Operating cash flow -$ 22.1million

So, operating cash flow is

= $39.1 million + $22.1 million

= $61.20 million

Now

Operating cash flow  = EBIT – Taxes on EBIT + Depreciation  expenses

$61.2 million = EBIT- $28.9 million + $13.6 million

So, the EBIT is

= $61.2 million + $28.9 million - $13.6 million

= $76.5 million

5 0
2 years ago
Regarding organizational buying, the people who have the power to select or approve the supplier- especially for larger purchase
nadezda [96]
In general, the people who have the power to select or approve the supplier are referred to as the "buyers". Most of the time, buyers want to go with a supplier who can offer the best product at the cheapest price. 
8 0
3 years ago
The construction division has a highly seasonal workload, with fewer projects in the winter than in the summer. Also, different
bagirrra123 [75]

Answer:

Hire temporary employees to work on specific projects.

Explanation:

Human resource management is the process by which a business effectively manages its manpower needs to meet its organisational goals at a reduced cost to the business.

It involves the various strategies used to hire employees to meet business needs in a cost-effective way.

The construction division has a highly seasonal workload, with fewer projects in the winter than in the summer. Also, different expertise is needed for different kinds of buildings. So hiring a permanent workforce is counterproductive as they will be paid when there is no work to be done. The best strategy is to hire temporary workers. Also there is need for specialised staff to work on specific projects.

4 0
2 years ago
Other questions:
  • In the underground city of Neverwhere, GDP is $15 trillion, consumption is $10 trillion, and government spending is $2.5 trillio
    10·1 answer
  • What is axiom of power
    8·1 answer
  • Compared with free​ trade, large countries may increase national welfare when they place a tariff on imports. What unique aspect
    10·1 answer
  • The company paid $35,000 cash in dividends to the owner, jen rogers. the entry needed to close the dividends account is:
    10·2 answers
  • Federal subsidies that are only given to dairy farmers who own more than one hundred cows may raise concerns about the ______ of
    8·1 answer
  • Uber's review of drivers average passenger rutings., in order to make personnel decisions, is an example of which of the followi
    9·1 answer
  • . Resource utilization charts based on each activity’s latest start time are said to be based on an ____ schedule. a. as-soon-as
    9·1 answer
  • If the fair value of a debt investment that is classified as an available-for-sale investment declines for a reason that is view
    6·1 answer
  • Determine the value of z.
    15·2 answers
  • ou are planning to save for retirement over the next 30 years. To do this, you will invest $890 per month in a stock account and
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!