Answer:
A
Decision: Project A should be selected.
B
NPV =$40,909.09
Explanation
A
<em>Since the two projects would achieve the same objectives, the project with the lowest initial cost should be selected.</em>
Kindly note that the $2 million already spend on project A is not a relevant cash flow because it is sunk cost. Hence, the initial cos outlay of project A will be $2 million which will be spent should the project be undertaken.
Project B on the other hand would cost $1.5 million in initial cost which is $500,000 cheaper than project A.
Decision: Project A should be selected.
B
<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite. </em>
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
Initial cost = 50,000
The NPV of the savings
NPV = 100,000× 1.1^(-1) - 50,000= 40,909.09
NPV =$40,909.09
Answer:
-260,000 current earings and profits
Explanation:
From the taxable income we are going to adjust to get the current earnings and profits
-500,000 taxable income
-20,000 non-deductible expenses
+10,000 exempt taxes
+250,000 deferred gain
-260,000 current earings and profits
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The answers are as follows:
1. D.
Truck dispatchers are workers who worked behind the scene to ensure that truck drivers have loads to carry and they ensure that drivers comply with their specified appointed arrival time and destinations. Truck dispatchers are indispensable to the truck industry because of their crucial roles in ensuring that truck drivers concentrate on their routes and safely deliver their cargoes.
2. A.
The field of engineering is a branch of science and technology which involves the design, manufacture and use of various types of machinery, technology and building. Engineering is a wide field and there are different types of engineering. Engineers use science and technology to solve problems.
3. D.
An agribusiness is a type of business that involves the production, processing and distribution of agricultural products. It is a business which manages the food supply system. The term 'agribusiness' encompasses all those that are involved in the marketing of the farm produce including the warehouses, wholesalers, processors, etc.
A certificate of deposits don't fluctuate is stays at a certain rate.