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
Allura’s Little Robotics Company sells Good S in a perfectly competitive market with a downward-sloping demand curve and an upwa
solniwko [45]

Answer:

Allura’s Little Robotics Company sells Good S in a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. The market price is $62 per unit.

6 0
2 years ago
The Planning process team is progressing. The team has involved a number of expert opinions in trying to approximate the costs n
Andrei [34K]

Answer:

Chart of accounts.

Explanation:

Chart of account set up the codes which is used to determine the project cost. Under chart of account each account is assigned unique number and name. Example of chart of accounts include balance sheet accounts, asset accounts, liability accounts, revenue accounts, expenditure accounts, etc.

Chart of account is usually used by an organization to show that what amount of money is received or spent by each class of items. By segregating expenditure, revenues, liability, assets, etc. it provide better understanding to an organization about financial health.

8 0
3 years ago
A 15 year, $1,000 par value bond has an 8% semi-annual payment coupon. The bond currently sells for $925. if the yield to maturi
Monica [59]

Answer:

Explanation:

First, find the YTM of the bond using the following inputs on a financial calculator;

N = 15*2 = 30 semiannual payments

PV= -925

Semiannual coupon payment; PMT = (8%/2)*1000 = 40

FV = 1,000

then CPT I/Y = 4.458%

Annual rate = 4.458% *2 = 8.92%

Next, use the YTM above and change the time to maturity to (15-5 )= 10 years or 20 semiannuals. Therefore, the price at year 5 will be as follows;

N = 10*2 = 20

Semiannual coupon payment; PMT  = 40

FV = 1,000

Semiannual rate; I/Y = 4.458%

then CPT PV = 940.206

The price at year 5 will be $940.21

7 0
3 years ago
Hyper Tech employees were told to attend an upcoming mandatory meeting at which the CEO would be making an important announcemen
ser-zykov [4K]

Answer: A speculation

Explanation: A speculation is a form of information in widespread that doesn't have a solid proof. The information about the acquisition of another company by the employees has no solid proof therefore it's a speculation.

6 0
3 years ago
Jones & hilton co. owned a large cold storage warehouse where they stored and processed meat and meat products. an insider r
kvv77 [185]
Jones & Hilton co. owned a large cold storage warehouse where they stored and processed meat and meat products. an insider revealed to the media that the cold storage failed to meet numerous safety standards, encountered repeated rodent attacks, and sold potentially harmful and infected meat in the market without notifying authorities. the U.S. Department of Agriculture has the authority to conduct inspections of the cold storage warehouse and initiate legal proceedings against the owners for endangering the health of consumers.
6 0
3 years ago
Other questions:
  • NEED HELP ASAP!!!!!! 8 POINTS!!!!Explain five guidelines to follow when shopping from home.
    8·2 answers
  • The cross price elasticity for coffee for a change in the price of tea is likely to be __________.
    12·1 answer
  • Wendy worked as a salesperson and had the highest total dollar value of sales for all salespersons in her company in the first q
    10·1 answer
  • The Highway Transportation System ___________.
    13·2 answers
  • When a company recognizes that the needs of one market segment is not the same as another and accordingly customizes its product
    15·2 answers
  • Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1912. It
    15·1 answer
  • In the value chain, what is the term of the activities that are required but not directly add value to the company's products or
    9·1 answer
  • If you invest $5,000 at the beginning of each month, howmany months will it take for your account to grow to $250,000
    9·1 answer
  • They are chasing a dog convert into passive voice​
    13·1 answer
  • Identify the form of communication in which an individual both speaks up for their rights and also takes others' rights and feel
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!