Answer:
This question is incomplete. The discount rate was not given. Thus, a discount rate of 10% is assumed.
PROJECT A
Year Cashflow [email protected]% PV
$ $
0 (100,000) 1 (100,000)
1 30,000 0.9091 27,273
2 30,000 0.8264 24,792
3 30,000 0.7513 22,539
4 30,000 0.6830 20,490
5 30,000 0.6209 18,627
NPV 13,721
PROJECT B
Year Cashflow [email protected]% PV
$ $
0 (100,000) 1 (100,000)
1 40,000 0.9091 36,364
2 30,000 0.8264 24,792
3 30,000 0.7513 22,539
4 30,000 0.6830 20,490
5 20,000 0.6209 12,418
NPV 16,603
Product B has a higher NPV
Explanation:
In this case, we will discount the cashflows for each year at 10%. Then, we will determine the present value of cash inflows by multiplying the cash inflows by discount factor. Thereafter, we will deduct the initial outlay from the present value of cash inflows so as to obtain the net present value.
Answer:
E) Annuity B has a smaller present value than annuity A.
Explanation:
The main premise in finances is that the value of money increases in time, e.g. one dollar today is worth more than one dollar tomorrow.
In this case, annuity A is an annuity due (payment is made at the beginning of each period). An annuity due that has the same payments and the same rates, will always have a higher present value than an ordinary annuity.
Answer:
4
Explanation:
According to economic growth theories , economic growth can occur as a result of :
1. increase in labour
2. technological advancement
3. growth in physical theories
Answer:
A short-term inducement of value offered to arouse interest in buying a product or service
Explanation:
Sales promotion can be defined as a process of trying to get a potential customer to buy the product by persuading them. Sales promotion a short-term tactic used for the purpose of boosting sales. As a method of building long-term customer loyalty, it is barely suitable. Sales promotions are aimed at getting consumers interested in purchasing a product or service.
Answer:<em><u> The testimony of the jurors is not admissible, because a juror cannot testify as to any juror’s mental processes concerning a verdict.</u></em>
<em>Juror needs to follow a basic rule i.e. he/she can't impeach their own verdict. He/she cannot take the stand due to the mental activity that he/she or other juror used in concluding a verdict.. </em>