Answer:
Option e is the correct answer.
As the NPV of project 1 is higher than Project 2's NPV, Project 1 is recommended,
Explanation:
To determine which project to choose, we will calculate the net present value (NPV) of both projects and the project with the higher NPV will be chosen.
NPV is the present value of the future cash flows inflows expected from the project less any initial cost. The formula for NPV is as follows,
NPV = CF1 / (1+WACC) + CF2 / (1+WACC)^2 + ... + CFn / (1+WACC)^n - Initial outlay
Where,
- CF1, CF2,... is the cash flow in year 1, Year 2 and so on
NPV - Project 1 = 60 / (1+0.1) + 60 / (1+0.1)^2 + 60 / (1+0.1)^3 +
220 / (1+0.1)^4 + 220 / (1+0.1)^5 - 200
NPV - Project 1 = $236.076 rounded off to $236.08
NPV - Project 22 = 300 / (1+0.1) + 300 / (1+0.1)^2 + 100 / (1+0.1)^3 +
100 / (1+0.1)^4 + 100 / (1+0.1)^5 - 600
NPV - Project 2 = $126.1861 rounded off to $126.19
As the NPV of project 1 is higher than Project 2's NPV, Project 1 is recommended,
Answer:
E) valent
Explanation:
Valent rewards refers to rewards that employees want and desire, therefore they are a source of motivation. Valent rewards are not the same for everyone, since every individual values a reward in a different way. For example, some people value public recognition a lot, while others only value monetary rewards.
If valent rewards are associated with good performance, then the employees will be motivated to perform better, e.g. additional bonuses given to salespeople if they increase their monthly sales by 10%.
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<span>Absorbing markov chains are used in marketing to model the probability that a customer who is contacted by telephone will eventually buy a product. consider a prospective customer who has never been called about purchasing a product.</span>
Answer:
Check the explanation
Explanation:
Using the constant growth model which can be applied even if the dividends to be paid are declining by a constant or stable percentage, you just have to make sure that the negative growth is recognized. So, the price of the stock as at today will be calculated like:
P 0 = D 0 (1 + g ) / ( R – g )
P 0 = $11.40(1 – 0.0475) / [(0.08 – (–0.0475)]
P 0 = $85.16