Answer:
Explanation:
Given that :
Project A will produce annual cash flows of $42,000 at the beginning of each year for eight years.
Project B will produce cash flows of $48,000 at the end of each year for seven years.
Return rate = 12% = 0.12
a) Which project should the company select and why?
To determine the project which the company should select; let find the PV of cash flow:
For project A; PV of cash flows at the beginning of the each year is determined with the use of the expression:
PV = $233,677.77
For project B , the PV of cash flows at the end of the each year is determined with the use of the expression:
PV = $219,060.31
Hence, the company should select project A due to the fact that the cashflow is higher.
b) Which project should the company select if the interest rate is 14% at the cash flows in Project B is also at the beginning of each year?
Given that : the new interest rate = 14%;
then :
PV of cahflow for project A is:
PV = $222,108.80
PV cashflow for project B is:
PV = $ 234656.04
Here, PV of Cash flow is greater in project B, As such it is best for the company to select Project B
Answer:
Idk if this is the right answer but I Google it and I got virtual reality/artificial intelligence and autonomous vehicles
Answer:
Bundling
Explanation:
Bundling in property rent occurs when a property owner offers rent of property with some other service that is considered service rendered to occupants of the building.
The additional service is not considered as part of rent expense.
I'm the given scenario the owner of the renting building is offering rent of property along with rent of furniture from the company as a package of $1,000.
The rent still remains $400 while the extra cost is for furniture rent.
I believe it’s 4 since you have to go to class and introduce yourself to the teachers so he/she will know you better and know how they can help you and when going to their office hours they can help you with anything that you are having trouble with.
Answer:
If the return on capital is 12% and the price for loanable funds is 14%, then:____.
a. currently businesses will not borrow loanable funds to invest in capital goods.
Explanation:
This simply means that the costs of borrowing exceed the returns. This makes borrowing and investment unattractive to businesses. The resulting effect on the economy will be disastrous. Many economic variables will be affected negatively, especially output and employment. At such times, the central bank needs to intervene with monetary policies to move the economy out of recession.