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BlackZzzverrR [31]
3 years ago
12

When choosing between mutually exclusive projects, what is the best method to use?

Business
1 answer:
KIM [24]3 years ago
7 0

Answer:

Option C. The highest NPV is always the best option.

Explanation:

The reason is that IRR assumes that the reinvestment rate is also at IRR which is not a realistic assumption. The Net Present Value resolves this as it assumes that the reinvestment rate is cost of capital and hence is more better than IRR to appraise the project.

The decision rule in the Net present value method is that the project which has higher positive Net present value is regarded as best project among two mutually exclusive projects.

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Cliff Co. wants to purchase a machine for $42,000, but needs to earn a return of 11%. The expected year-end net cash flows are $
grandymaker [24]

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54 percent

Explanation:

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Cairns owns 80 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired several years ago on the date th
tensa zangetsu [6.8K]

Answer:

hello your question has a missing journal entry table attached below is the entry journal table completely filled

Explanation:

Amount of bonds acquired = 40% of original bond

i) Bonds payable = 40% * 1,300,000

                           = $520000

purchase price of bonds = $520000 * 96% ( FACE VALUE )

                                         = $499200

hence the annual amortization

(bonds payable - purchase price of bonds ) / 10 years - 2 years

(520000 - 499200 ) / 8  = $20800/8 = $2600

ii) premium on bonds payable

$20800 - $2600 = $18200

cash amount = $520000 * 8% = $41600

intra entity expense and income table is attached below

from the table

iii) intra-entity interest expense = $39000 and the

iv) intra-entity interest income = $44200

v) investment in bonds

purchase price of bonds + annual amortization

= $499200 + $2600 = $501800

the book value on bonds as at 1st January 2011

=$1300000 * 105% = $1365000

Premium on bonds as at January 1st 2011

= $1365000 - $1300000 = $65000

amortization of premium as at January 1st 2011

=( ($65000) / 10 years ) * 2 years

= $13000

hence the controlling interest in bonds payable = $540800

vi) gains on retirement bonds

=  $540800 - $499200 = $41600

attached below is the journal entry on 31st December 2013

5 0
3 years ago
Rick loses his job and immediately begins looking for another. Ceteris paribus, the unemployment rate:________.A. increases, and
almond37 [142]

Answer:

B. increases, and the labor-force participation rate is unaffected

Explanation:

Rick loses his job and immediately begins looking for another. Definitely, the unemployment rate has increase. He has been sent back to the labor market. Rick is definitely unemployed because he lost his job and this means an  increase in the employment rate. Note that unemployment rate is the percentage of the labor force that is unemployed and are actively looking for a job.

The labor force participation rate is the percentage number of people who are of working age both the employed and the once actively looking for a job. The labor force participation rate is definitely unaffected as Rick lost his job.  

6 0
3 years ago
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Does the market system result in productive​ efficiency? In the long​ run, perfect competition
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yes because you do to be equivalent to the total cost of the unit for all systems

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Procter & Gamble plans to raise its number of global customers to 5 billion. Two countries integral to P&G’s success is
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