Answer:
Explanation:
the file attached shows the whole solution
The answer to this question is the <span>greatest benefit, at the lowest cost, in the shortest period of time. This type of projects usually will give the most satisfaction to the shareholders, and it also give the most boost for company to increase its assets so the company could obtain more workers and equipment that could be used to do larger projects
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Answer:
The correct answer for option (a) 0.98 and 1.04 and for option (b) is Boulder Location.
Explanation:
According to the scenario, computation of the given data are as follows:
A). We can calculate the present value index by using following formula:
Present value index = Total present value of net cash flow ÷ Amount to be invested
Present value index Ft. Collins = 607,600 ÷ 620,000 = 0.98
Present value index Boulder = $624,000 ÷ $600,000 = 1.04
Fort Collins has 0.98 present value index and boulder has 1.04 present value index.
B). Boulder location should be chosen according to the analysis. Because boulder has the 1.04 present value index which is greater than 1 while fort Collins has value less than 1.
The reason could be that they want a higher education. 4 year degree is more rewarding than a 2 year degree. they want a higher education so they can get a better job that pays them even more. thats my opinion. remember this has to do more with money. the more you prepare yourself the more money you are able to get.
