Answer:
The manager should pick project B
Explanation:
To determine what decision the manager should make, the NPV of both projects should be calculated.
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
NPV for project A
Cash flows:
Year 0 = $-335,000
year 1 = $140,000
year 2 = $150,000
year 3 = $100,000
I = 6%
NPV= $14,536.87
NPV for project B
Cash flows:
Year 0 = $-365,000
year 1 = $220,000
year 2 = $110,000
year 3 = $150,000
I = 6%
NPV= $66,389.67
Both projects are profitable but because the firm uses capital rationing , the manager has to pick the now profitbale project, which is project B.
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Answer: Strivers
Explanation:
The term that refers to people who are trendy and fashionable in order to impress others and are often impulse buyers is Strivers.
It should be noted that Strivers are usually consumers that are from low income families but they so much believe in style and fashion and really wants to impress and emulate celebrities or high income earners who use lastest trends or fashion.
Answer:
Budget
Explanation:
You're sorting out your investments and spending habits. Often sorting out all of your needs to fit in a well <em>balanced </em>budget
Answer:
the right answer is Aden wants to get a summer job during his school vacation.
Explanation:
short-term goals are those that are aimed at meeting monthly
Expansionary policy boosts the economy in the short run but not the long run.
Option A
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Explanation:
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Germany was considered one of the richest countries before World War 1. Their economy was very steady and there is no match for them among countries.
Due to the effect of World War 1 the country was into hyperinflation and all the prices of perishable things and food items has increased at a very fast pace. To balance the inflation they applied Expansionary monetary policy which uses the central bank to print money to stimulate the economy.
The increase in supply of printed money will ease out the lending rates and it will boost the economy.
