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
pogonyaev
3 years ago
15

You are considering the following two mutually exclusive projects. The crossover point is _____ and Project _____ should be acce

pted if the discount rate is 14%.
a. 12.79%; B
b. 15.96%; A
c. 15.96%; B
d. 13.28%; B
e. 13.28%; A
Project A
Year 0 -$21,000
Year 1 $7,000
Year 2 $7,000
Year 3 $15,000
Project B
Year 0 -$21,000
Year 1 $15,000
Year 2 $5,000
Year 3 $7,000
Business
1 answer:
Romashka [77]3 years ago
3 0

Answer:

13.28%; B

Explanation:

Project A                                 Project B                          Differential

Year 0 -$21,000                     Year 0 -$21,000               0

Year 1 $7,000                         Year 1 $15,000                -$8,000

Year 2 $7,000                        Year 2 $5,000                 $2,000

Year 3 $15,000                       Year 3 $7,000                $8,000

the discount rate = 14%, the NPV is:

NPV project A = -21,000 + 7,000/1.14 + 7,000/1.14² + 15,000/1.14³ = $651

NPV project B = -21,000 + 15,000/1.14 + 5,000/1.14² + 7,000/1.14³ = $730

if the discount rate is 14%, project B should be accepted (higher NPV)

the crossover rate is the discount rate where both NPVs are equal.

we must find the IRR using an excel spreadsheet and the IRR function:

=IRR (0,-8000,2000,8000) = 13.28%

You might be interested in
Because we often cant choose who our coworkers will be we should
Vanyuwa [196]
Practice working with others even if you don't fell comfortable with this person, or necessarily like them at all.
6 0
3 years ago
Before you start to develop your résumé, what should you analyze?
Reil [10]
You need to analyze your personal achievements, or B.  Without doing this, there is nothing to put on your resume.
4 0
3 years ago
Read 2 more answers
The Peter's Group originated four years ago, and since then, the company has grown each year. Management has focused on making s
Gekata [30.6K]

Answer:

The Peter's Group originated four years ago, and since then, the company has grown each year. Management has focused on making sure that the organization's strategic goals cascade down through the organization so that the employees can work together in pursuit of common ends. Peter's Group is using aligned goals in their organization.

Explanation:

Aligned goals is what organizations do in order to gather all the forces towards the achievement of  common objectives.

6 0
3 years ago
From the time he arrives at the craters' farm, mr. shiftlet's greatest desire is for
spayn [35]
<span>Mr. Shiftlet is a character from the story, The Life You Save May Be Your Own, written by Flannery O’Connor. In it, Mr. Shiftlet visits the Crater farm in Alabama and Mrs. Crater hires him to do repairs around the farm. From the beginning, Mr. Shiftlet's greatest desire is to obtain a car he found parked at the farm. He spends a good deal of time working on the car and wants it for himself.</span>
4 0
3 years ago
Which of the following statements is NOT true concerning the Other Dependent Credit
omeli [17]

Answer:

The incorrect statement is letter "B": Residents of Canada meet the definition as a qualifying person.

Explanation:

Credit for Other Dependent is a tax credit taxpayers can claim for every qualifying dependent that is not considered as a Child Tax Credit (17 years or older and elderly parents). The taxpayer can get up to $500 nonrefundable credit for each of those qualifying dependents. Residents of Canada and Mexico do not meet the definition of qualifying dependent.

8 0
3 years ago
Read 2 more answers
Other questions:
  • Allison is contemplating a job offer with an advertising agency where she will make $54,000 in her first year of employment. Alt
    15·1 answer
  • ​brooke's law states that adding more people to a late project makes the project​ ________.
    12·1 answer
  • Which of the following accounts will give you the LEAST access to your money ?
    13·2 answers
  • Under what circumstances, when a searching operation is needed, would sequential search not be appropriate?
    8·1 answer
  • What is the main purpose of monetary policies?
    7·2 answers
  • Which of the following statements is incorrect regarding the process of building a company's brand, particularly for young firms
    14·1 answer
  • Bramble Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $220
    13·1 answer
  • What are items such as health insurance, life insurance, sick days, vacation time, and retirement savings called when provided b
    14·1 answer
  • Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into ya
    12·1 answer
  • Lower-level managers are empowered to make decisions in a ______ organization, which can ________ motivation and job satisfactio
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!