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tatyana61 [14]
3 years ago
12

If project A generates $10 million of free cash flow over its five year useful life and project B generates $8 million of free c

ash flow over its useful life, then Project A will have a shorter payback period than Project B, assuming both projects require the same initial investment.
Business
1 answer:
fredd [130]3 years ago
8 0

Answer: False

Explanation:

This seems to me like a True or False question and the answer would be False.

Payback period is calculated on the basis of the timing of cash flows and since we do not know the useful life of Project B neither do we know the timing of it's cash flows, we cannot say for certain that Project A has a shorter Payback period.

For example, the initial investment could be $5 million for instance but Project A only pays $10 million on its 5th year whereas Project B had a useful life of 4 years and paid $2 million each of those years. Meaning it would have paid back before the end of the 3rd year.

If you need any clarification do react or comment.

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After trial, Jane reported Greg's actions in letting the air out of her tire to the police who said that they would proceed with
Elenna [48]

Answer:

Counterclaim

Explanation:

Counterclaim is a way to rebut an accusation against you. If one is charged with not paying back a debt and the defendant in turn sues for fraudulent activities for the bank, that is a counter claim.

In this instance after Jane was charged to court she now revealed that Greg let air out of her tire and she is now suing him for criminal action.

3 0
3 years ago
The optimal capital structure is the one where the percentages of debt, preferred stock, and common equity minimize the firm's v
lord [1]

This is false that The optimal capital structure is the one where the percentages of debt, preferred stock, and common equity minimize the firm's value.

The best combination of debt and equity financing that increases market value while lowering a company's cost of capital is known as an optimal capital structure. One strategy for aiming for the lowest cost mix of financing is to minimize the weighted average cost of capital (WACC).

Financial management greatly benefits from having the ideal capital structure. It enables a business to efficiently raise the required capital from a variety of sources. The ratio of debt to equity in the ideal capital structure will maximize the firm's wealth. The market price per share is at its highest and the cost of capital is at its lowest with this capital structure.

To know more about optimal capital structure refer to:  brainly.com/question/15041466

#SPJ4

7 0
2 years ago
"what are the major factors customers use when selecting a restaurant to dine" at, and what is the relative importance of each o
schepotkina [342]
Abstract

This study investigates the critical dimension of factors driving restaurant choice among 277 consumers, predominantly residents of the Southeastern United States. The food provided (quality, taste) was central to respondents' decision to favor one restaurant over another, though prior positive experience, a clean production/service environment, and hospitable service are additional factors that most strongly influenced restaurant choice.

5 0
4 years ago
The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ende
Ierofanga [76]

Answer:

$0.72

Explanation:

total direct materials = $125,000

total variable selling costs = $15,000

total variable costs = $140,000

variable cost per unit = $140,000 / 1,000 units = $140 per unit

contribution margin ratio = (sales price - variable cost) / sales price = ($500 - $140) / $500 = 72%

this means that per dollar of sales, $0.72 are left to cover fixed costs and contribute to operating income

8 0
3 years ago
Suppose that businesses buy a total of $120 billion of the four resources (labor, land, capital, and entrepreneurial ability) fr
Bingel [31]
To consider this question, we must consider the relationship between the resources and their costs.
Labor: The price that companies pay for labor is the wage. The businesses paid $68 billion for labor
Land: The price of land that business pay is rent (assuming they do not own the land). The business paid $14 billion for land. 
Capital: The cost of using capital is the interest paid on that capital. The businesses paid $24 billion for using capital. 

This leaves entrepreneurial ability. It is more difficult to discern the payment for this resource, as it is less tangible and thus has a less direct cost. From the payment for other resources and the total payment to households, we can infer the payment for entrepreneurial ability:
120 - 68 - 14 - 24 = $14 Billion
7 0
4 years ago
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