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tensa zangetsu [6.8K]
3 years ago
14

A project has been assigned a discount rate of 12 percent. If the project starts immediately, it will have an initial cost of $4

80 and cash inflows of $350 a year for three years. If the start is delayed one year, the initial cost will rise to $520 and the cash flows will increase to $385 a year for three years. What is the value of the option to wait?a. $.70b. $1.08c. $1.67d. $2.20e. $.20
Business
1 answer:
victus00 [196]3 years ago
7 0

Answer:

The value of the option to wait is $0.70,option A.

Explanation:

In calculating the value of the option to wait,I discounted all cash flows under both alternatives, using the discount rate of 12% as given in the question.

Option to start now gives net present value(positive return ) of $360.64 while the other one gives $361.34,invariably option to wait one year gives $0.70($361.34-$360.64) more than the option to start now.

The formula used in the calculating present value is PV=FV(1+r)^n

Where PV=present value

FV=future value

r=rate of interest

n=number of year

Find attached spreadsheet for detailed calculations.

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The scenario wherein many files about the same person exist across different departments within an organization is called data _
Kamila [148]

When a person has several files across different departments in an organization, this is called data C) Redundancy

Redundancy:

  • Refers to something being repeated when it shouldn't be
  • Can often lead to the repeated copies being deleted

If a company has records of the same person, saying the same thing, across different departments, this is data redundancy as the person's records are being repeated in an unnecessary manner.

In conclusion, the scenario described is data redundancy.

Options for this question include:

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C) Redundancy

D) Duplication

<em>Find out more at brainly.com/question/13438926. </em>

3 0
2 years ago
Assume the economy is on aggregate demand AD1. The Fed should attempt to raise investment by enough to shift aggregate demand fr
maw [93]

Answer:

AD2 and then to AD3

Explanation:

If the investment is continued to increase by federal reserve it would only be feasible when money creation decreases the interest rate.

The aggregate demand would then be expanded and the aggregate demand curve shifted to the right. The necessary increase in aggregate demand must be such that aggregate shifts in demand curve from AD1 to AD2 to AD3.

3 0
3 years ago
William and Charlotte Collins divorced in November of Year 1. William moved out and Charlotte remained in their house with their
musickatia [10]

Answer:

Charlotte has the priority to claim Autumn as her dependent even though William covered 70% of her living expenses during the year. In order for a parent to be able to claim a child as a dependent, he/she must live with the child for more than half the year. In this case, since William left the house, Charlotte has preference over claiming Autumn as her dependent (even though William lived with Autumn for 10 months). Also, a parent always has priority over other relatives including a grandparent.

7 0
3 years ago
The component of the service environment that involves products or services provided by an organization is/are called _______.a.
Marat540 [252]

Option A

The component of the service environment that involves products or services provided by an organization is/are called The delivery system

<u>Explanation:</u>

A system or scheme for rendering a good or aid to the society is termed as a delivery system. The essential factors for strong service delivery systems are defined which must be followed by every industry to meet their delivery system.

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Grace [21]

Answer:

The correct answer is Option A.

Explanation:

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The building purchased by BOC is an asset. So there is need to debit that account to recognize the asset. Since there was an outflow of cash to the tune of $50,000, we need to credit cash while the remaining balance being financed by mortgage will be credited to recognize the liability.

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