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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.

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A. she was born on august? 4, 1950, and lived at 37 gesner street until she was sixteen.
Korolek [52]
??? C ???

whats the question here
4 0
3 years ago
Nadal Corporation manufactures custom molds for use in the extrusion industry. The company allocates manufacturing overhead base
Anna11 [10]

Answer:

C.$46,730

Explanation:

Nadal Corporation manufactures custom molds for use in the extrusion industry. Based on the data available we first see the formula to calculate the total manufacturing cost of the job 532.

In general, sum of all the cost directly or indirectly included in the manufacturing cost. Therefore the formula is as below

Total Manufacturing Cost = Direct Labor Cost + Direct Materials Cost + Manufacturing Overhead Cost.

Direct labor cost $36,800

Direct materials used $5,000

Predetermined manufacturing overhead rate based on machine hours $17  which is = $17 x 290 hours

Manufacturing cots= 4930$

Total Manufacturing Cost = 36800 + 5000 + 4930

Total Manufacturing Cost = 46,730$

3 0
3 years ago
A corporation following a _________ emphasizing vertical or horizontal growth would probably want an aggressive new chief execut
UkoKoshka [18]

Answer:

concentration strategy

Explanation:

This is an approach in which a business focuses on a single market or product which allows the company to invest more resources in production and marketing in that one area.

3 0
3 years ago
Read 2 more answers
Mr. smith wishes to retire in 11 years. when he retires he would like to have $500,000 in his bank account. mr. smith's bank pay
Simora [160]
The formula is
A=p (1+r)^t
A future value 500000
P present value. ?
R interest rate 0.06
T time 11 years
Solve the formula for p by dividing both sides by (1+r)^t to get
P=A/(1+r)^t
P=500,000÷(1+0.06)^(11)
P=263,393.76

he should deposit 263393.76 now to attain 500000

Hope it helps!
4 0
3 years ago
When the number of units in work in process and finished goods inventories decrease, absorption costing net operating income wil
Nastasia [14]

Answer:

b. False

Explanation:

The difference between absorption costing net operating income and variable costing net operating income lies in the <em>fixed costs deferred in closing inventory</em>.

If Production is greater than Sales - <u>Increase in Finished Goods Inventory</u>, Absorption costing net operating income  will typically be greater than Variable costing net operating income.

However, If Production is less than Sales - <u>Decrease in Finished Goods Inventory</u>, Absorption costing net operating income  will typically be less than Variable costing net operating income.

7 0
3 years ago
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