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
Semenov [28]
3 years ago
10

You are given two choices of​ investments, Investment A and Investment B. Both investments have the same future cash flows. Inve

stment A has a discount rate of​ 4%, and Investment B has a discount rate of​ 5%. Which of the following is​ true?A. The present value of cash flows in Investment A is lower than the present value of cash flows in Investment B.
B. The present value of cash flows in Investment A is equal to the present value of cash flows in Investment B.
C. The present value of cash flows in Investment A is higher than the present value of cash flows in Investment B.
D. No comparison can be made - we need to know the cash flows to calculate the present value
Business
1 answer:
valina [46]3 years ago
3 0

Answer:

C. The present value of cash flows in Investment A is higher than the present value of cash flows in Investment B.

Explanation:

Typically, discount rate represents cost of capital or funds used to finance the investment. This implies that the higher the cost of capital , the lower the present value of cash inflow on the investment and vice-versa.

Hence, the present value of cash flows in Investment A is higher than the present value of cash flows in Investment B,  because A has a lower discount rate.

You might be interested in
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or
DedPeter [7]

Answer:

The value of the inventory at the lower of cost or market price is:

= $21,170.

Explanation:

a) Data and Calculations:

Product  Inventory    Cost per Unit  Market Value per Unit     LCNRV

              Quantity                              (Net Realizable Value)

Model A       12                $106                   $102                  $1,225 (12*$102)

Model B      45                    84                       70                     3,150 (45*$70)

Model C     36                  254                    243                     8,748 (36*$243)

Model D     31                     85                      88                     2,635 (31*$88)

Model E     41                    132                    148                      5,412 (41*$132)

Total cost of inventory based on LCNRV (per item)        $21,170

3 0
3 years ago
What are the steps to using a database template? Use the drop-down menus to complete them.
Hoochie [10]

Answer:

1) New 2) Location 3) Create

Explanation:

Edg 2020

8 0
3 years ago
Read 2 more answers
A business' last line of defense against risks that cannot be controlled or avoided by other risk management practices is this t
natima [27]

Answer: A business continuity plan

                           

Explanation: Business continuity planning refers to the procedure involved in creating a risk reduction and recovery scheme for a corporation from possible hazards.

The strategy helps to ensure the protection of management and resources and the ability to operate rapidly in the event of an emergency. The BCP is usually designed in ahead of time and includes insight from relevant parties and staff.

BCPs are an essential part of any undertaking. Threats and disturbances result in revenue shortfall and increased costs, resulting in a decline in productivity. And companies can not rely solely on insurance since it does not cover all the costs and the clients that move to the contest.

5 0
3 years ago
Explain the difference between a depository institution and a non-depository institution.
WINSTONCH [101]

Explanation:

First, Depository institution

Institution that collect money from people and pay interest . You may can deposit your cash and withdraw it anytime . If you put longer they pay interest. Interest may be fixed or variable. On other words, from that institution you can send your money to other people ,can get credit or debit card to withdraw or shopping. They gave you loans. Such institution are:

Commercial bank , Saving institution,credit union and so on.

In last remember that those who pay you interest ,give loan facilities, business transaction and collect your money they are Depository. They have 3 types of account for people who want to deposit their money. 1. Current account 2. Saving Account 3. Fixed

Non Depository institution

Where you cannot put your money and withdraw it . You would not get interest. They are intermediary between borrowers and saver. They are:

Mutual funds: where you buy scheme in units. It like investment . Then they pay you bonus and even you can sales it on market. Don't confuse mutual funds collect money from public invest it on market and share their profit.

Insurance companies: they insure your belonginess. They pay when your things goes beyond the normal level. Like. Car theft,goods damage.

Pension fund:

Security firms: investment companies ,broker house.

8 0
3 years ago
Stephanie Johns is a member in a store that is a nonprofit organization that buys grocery items in bulk. The savings on these bu
Luden [163]

Answer:

E.cooperative

Explanation:

Based on the information provided within the question it seems that Stephanie Johns is most likely shopping in a cooperative store. This is a type of store that is owned and managed by the customers themselves, using their own capital for the business and at the same time share in the dividends provided. Which in this case are savings from lower food prices.

8 0
3 years ago
Other questions:
  • About what percentage of land in the United States is privately owned by citizens, corporations and nonprofit organizations?
    11·1 answer
  • Recently passed rules for defining academic progress and graduation rates for ncaa division i teams shift more responsibility fo
    9·1 answer
  • consider proposed fixedminus asset ​outlays, research and development​ activities, marketing and product development​ actions, c
    12·1 answer
  • Coupon payments are fixed, but the percentage return that investors receive varies based on the market conditions. this percenta
    15·1 answer
  • A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $12 per hour and capi
    15·1 answer
  • Computer user support is another name for:
    9·2 answers
  • Larkspur Company has been operating for several years, and on December 31, 2020, presented the following balance sheet.
    15·1 answer
  • ____________ reflects the understanding that the cost of repairing an unexpected breakdown is usually much greater than preventa
    8·1 answer
  • In a corporation, the________ is the group of people elected to oversee the firm’s activities and ensure that management acts in
    15·1 answer
  • What taxes and withholdings take the biggest bite out of the amount of your paycheck?.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!