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Sav [38]
3 years ago
5

The Square Box is considering two independent projects, both of which have an initial cost of $18,000. The cash inflows of Proje

ct A are $3,000, $7,000, and $10,000 over the next three years, respectively. The cash inflows for Project B are $3,000, $7,000, and $15,000 over the next three years, respectively. The required return is 12 percent and the required discounted payback period is 3 years. Based on discounted payback, which project(s), if either, should be accepted
Business
1 answer:
Liula [17]3 years ago
6 0

Answer:

The Square Box should accept Project B only

Explanation:

Square Box should decide the project whose Net present value (NPV) of future cash inflow is higher than the initial cost of investment

NPV of cash inflow from Project A = 3,000/(1+12%)+7,000/(1+12%)^2+10,000/(1+12%)^3 = $15,377, lower then initial cost of $18,000 → deny Project A

NPV of cash inflow from Project B = 3,000/(1+12%)+7,000/(1+12%)^2+15,000/(1+12%)^3 = $18,936, higher then initial cost of $18,000 → accept Project B

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You are going to deposit $26,000 today. You will earn an annual rate of 6.1 percent for 11 years, and then earn an annual rate o
yawa3891 [41]

Answer:

Total value in the account after 25 years = $105,530.26

Explanation:

The value of an amount invested at a certain rate of return for certain number of years where interest compounded annually is known as the future value.  

The future value of an investment can be determined using the future value formula. This formula is stated below:

FV = PV × (1+r)^(n)

FV - Future Value , PV- Present Value, r-rate of return, n- number of years

<em>For the first compounding, 6.1% for 11 years</em>

<em>PV - 26,000, r- 6.1% and n- 11</em>

FV = 26,000 × (1.061)^11 = 49,870.367

<em>For the second round of compounding at 5.5% for 14 years</em>

<em>PV - </em> 49,870.367 , r -5.5%, n- 14

FV = 49,870.367× 1.055^14 = 105,530.259

Total value in the account after 25 years = $105,530.26

5 0
3 years ago
Staples promises an excellent online shopping experience, free delivery for purchases over $49.97, buy-online-collect in store,
Vanyuwa [196]

Answer:

b. a market penetration strategy

Explanation:

Market penetration means that it offered a greater products range at the lower price in order to outplayed the competitors and the customers for purchasing the product from the new company

Since in the given situation, it is mentioned that the free delivery is to be provided when purchase is more than $49.97 also the wider range is available

So the option b is correct

3 0
2 years ago
At the recent school board​ meeting, five individuals spoke on both the merits and problems with​ full-day kindergarten as compa
saul85 [17]

Answer:

defensive listening

Explanation:

Defensive listening happens when an individual hears an apparently innocent commentary and takes it as a personal attack against himself/herself or their beliefs. Many times defense listening is caused because the individual constantly believes that other people are judging them or their ideas.

In this case, Corrine was offended by a commentary that was not intended to be a personal attack, but rather an opinion on a specific topic. Probably Corrine feels strongly against the idea of full-day kindergarten and that is why she felt attacked by a different opinion.

4 0
3 years ago
A loss is when:
skad [1K]

Answer:

a if revenue is greater the loss in money will deplinish

6 0
3 years ago
Read 2 more answers
If the supply curve and the demand curve for lettuce both shift to the left by an equal amount, what can we say about the result
Anna [14]

Answer:

d. The price will stay the same, but the quantity will increase.

Explanation:

When the demand and supply both fall, the equilibrium quantity will definately fall but the price will remain the same. The new supply adapts to the reduction of the demand.

6 0
3 years ago
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