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tino4ka555 [31]
3 years ago
12

Based upon the following data, which of the following mutually exclusive projects should you choose if your required return is 1

0%?
Year Investment A Investment B
0 -$150 -$150
1 80 40
2 40 50
3 40 60
4 30 55
A. Investment A with an NPV of 633%.
B. Investment B with an NPV of 6.33%.
C. Investment A with an NPV of 10.33%.
D. Investment B with an NPV of 10.33%.
E. Both projects since they have positive NPV's.
Business
1 answer:
scoray [572]3 years ago
7 0

Answer:

d

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Investment A

Cash flow in year 0 = -$150

Cash flow in year 1 = $80

Cash flow in year 2 = $40

Cash flow in year 3 = $40

Cash flow in year 4 = $30

I = 10%

NPV = 6.33

Investment A

Cash flow in year 0 = -$150

Cash flow in year 1 = $40

Cash flow in year 2 = $50

Cash flow in year 3 = $60

Cash flow in year 4 = $55

I = 10%

NPV = 10.33

Project B has a higher NPV and it should be chosen

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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Question

Kindly note that the original question is not complete. The closest question found similar to the original is given below.

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Actual ounces purchased and used in

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Answer:

Labour rate variance $10,234.58 unfavorable

Explanation:

<em>The labour rate variance is the difference between the standard labour cost allowed for the actual hours worked and the actual labor cost for the same hours                                                                                           </em>

<em>Actual labour hours = 4,738</em>

                                                                                          $

4,738  hours should have cost (4,738 ×  $14.09) =  66,758.42                  

but did cost  (actual cost)                                           <u>76,993.00 </u>

labour rate variance                                                   <u>  10,234.58 unfavorable</u>  

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