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Svetradugi [14.3K]
3 years ago
11

You are considering two independent projects. Project A has an initial cost of $125,000 and cash inflows of $46,000, $79,000, an

d $51,000 for Years 1 to 3, respectively. Project B costs $135,000 with expected cash inflows for Years 1 to 3 of $50,000, $30,000, and $100,000, respectively. The required return for both projects is 16 percent. Based on IRR, you should:(A) Accept both projects.(B) Accept Project A and reject Project B.(C) Accept Project B and reject Project A.(D) Reject both projects.(E) Accept either one of the projects, but not both
Business
1 answer:
Tamiku [17]3 years ago
7 0

Answer:

B) Accept Project A and reject Project B.

Explanation:

We use excel or a spreadsheet to calculate this ratio.

See document attached.

Cash flow will solve this problem.

At moment 0 we have the investment cost or initial cost, in this case $125,000 or $135,000. From period 1 to period 3, we have different  incomes. Then, we calculate the Net cash flow that is the difference between benefits and cost.

We use all the result (positive and negative) in Net cash flow to get the IRR.  

<u>Project A</u>

Internal Rate of Return (IRR) 18,86%

<u>Project B</u>

Internal Rate of Return (IRR) 13,78%

So we should accept Project A and reject Project B,  because in project A the IRR is bigger of required return ( 16%),  we reject project B because the IRR is smaller.  

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Classical management theory and human relations methods contrast significantly with each other in what ways? 1. Classical theori
Mamont248 [21]

Answer:

1. Classical theories were the earliest theories developed in time, while human relations theories developed later as a reaction to the classical management.

Explanation:

Classical management theory and human relations theories contrast greatly. It can be said that classical theories were the earliest ones developed, while much of the human relations theories developed later as a reaction to them.

Classical theories align with McGregor's Theory X and also in some top-do with-downs. They feature strict division of labor into different categories, including levels of management. Planning and communication are done in a "top down" fashion, meaning that information flows from top management downward.

8 0
3 years ago
Read 2 more answers
Suppose that consumers purchase fish and computer chips. In 2010, one pound of fish costs $1, a computer chip costs $1, and the
tangare [24]

Answer:

42.5%

Explanation:

The computation of the inflation rate between 2012 and 2011 is shown below:

But before that we need to do the following calculations

Cost of basket for the year 2011 is

= 5 × 2 + 20 × 0.5

= 10 + 10

= 20

And the base year price index i.e. CPI is 100

Now

Cost of same basket in year 2012 is

= 5 × 2.10 + 20 × 0.90

= 10.5 + 18

= 28.5

Now  

CPI in 2012 is

= ($28.5 ÷ $20) × 100

= 142.5

So,

Inflation rate is

= (142.5 ÷ 100) - 1

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= 0.425

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5 0
3 years ago
Ancho Corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel-based cars. The company real
trasher [3.6K]

Answer:

A) leveraging new core competencies to improve current market position.

Explanation:

As is given in the scenario, the people that the company Ancho is trying to get are <em>potential customers</em> rather than existing, hence they cannot be said to be building new core competencies <em>to protect and extend current market position</em>. That would have been the case if they were trying to keep those that were already customers to the company.

Ancho cannot also be said to be <em>redeploying existing core competencies to compete in future markets </em>because they are actually acquiring new competencies in electric car manufacturing which was not their original line of business.

There is also no case of <em>unlearning existing core competencies </em>because Anchor has deployed existing competencies in developing a hybrid car rather than just an electric one.

Hence Anchor is trying to get new customers while keeping the old ones and has made a car that will appeal to both existing and potential customers to improve current market position.

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4 years ago
If OPEC decided to cut oil production for the coming year, what would be the MOST LIKELY effect?
LekaFEV [45]

Answer:

Maybe a loss in jobs?

Explanation: Because people who work for the oil company have to stop working idk

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3 years ago
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Which of the following statements is true of a situation in which a party to a contract substantially performs its obligations t
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<u>The party may be entitled to a </u><u>partial recovery</u><u> under the </u><u>contract.</u>

<u></u>

<h3><u>What is Substantial Performance in Contract Law?</u></h3>

Each party promises to uphold its end of the bargain when two parties enter into a contract. Say, for instance, that a property owner hires a contractor to work on their property's construction, such as adding a wing to the house. The property owner will pledge to pay for the services provided, and the contractor will promise to carry out the construction as specified in the contract.

When there is just a minor deviation from the terms of the agreement, a good faith attempt was made to achieve complete performance, and there was no major breach, a party may claim substantial performance. In essence, the result will be adequate to support payment for the services provided.

Learn more about substantial performance with the help of the given link:

brainly.com/question/15835417?referrer=searchResults

#SPJ4

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2 years ago
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