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patriot [66]
3 years ago
12

Douglass Interiors is considering two mutually exclusive projects and have determined that the crossover rate for these projects

is 11.7 percent. Project A has an internal rate of return (IRR) of 15.3 percent and Project B has an IRR of 16.5 percent. Given this information, which one of the following statements is correct?I. Project A should be accepted as its IRR is closer to the crossover point than is Project B's IRR.II. Project B should be accepted as it has the higher IRR.III. Both projects should be accepted as both of the project's IRRs exceed the crossover rate.IV. Neither project should be accepted since both of the project's IRRs exceed the crossover rate.V. You cannot determine which project should be accepted given the information provided.
Business
1 answer:
vampirchik [111]3 years ago
7 0

Answer:

V) You cannot determine which project should be accepted given the information provided.

Explanation:

The best way to determine which project to accept or reject is the net present value (NPV) and we do not have enough information to calculate it. Both projects have positive internal rates of return (IRR), but does any of them have a positive NPV? We cannot tell, so it is not possible to choose one or the other.

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Which of the following characteristics apply to taxable fringe benefits? (Check all that apply.)
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Answer:

Employers treat the taxable fringe benefits the same as cash compensation.

Explanation:

Taxable fringe benefits "are included in gross income and subject to federal withholding, social security, and Medicare taxes".

Fringe benefits are "perks and additions to normal compensation that companies give their employees, such as life insurance, tuition assistance, or employee discounts".

* The cost of the taxable fringe benefit is deductible to the employer, not the value of the benefit to the employee.

FALSE,  the taxable fringe benefit is not deductible from the employer.

* Employers treat the taxable fringe benefits the same as cash compensation.

TRUE, and as we can see on the definition above the taxable fringe benefits are treated as a compensation that comapnies giv their employees.

7 0
3 years ago
The option of sticking with the current business lineup makes sense when
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Answer:

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8 0
4 years ago
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4 0
3 years ago
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Answer:

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To save time, try a test solution after your first interview
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