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weeeeeb [17]
3 years ago
5

Investment A cost 12,000 today and it pays back 15,500 two years from now. Investment B cost $8,000 today and it pays back $6,00

0 each year for two years. If Interest of 5% is used, which alternate is superior? (Hint: Use present worth your cost is negative and your profits are positive) Group of answer choices
Business
1 answer:
crimeas [40]3 years ago
4 0

Answer:

Investment "B" is superior.

Explanation:

Below is the calculation of each investment net present worth.

Net present worth of Investment A = -12000 + 15500(P/F, 5%, 2)

Net present worth of investment A = -12000 + 15500 (0.9070)

Net present worth of investment A = 2058.95

Net present worth of Investment B = -8000+ 6000(P/A, 5%, 2)

Net present worth of investment B = -8000 + 6000 (1.8594)

Net present worth of investment B = 3156.4

Investment "B" is superior because its net present worth is greater.

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rodikova [14]

Answer:

Net income = $20,940

Explanation:

Answer 1.

   

Accounts                                                                                                                

Cash Receipts                             32,000  

Expenses    

Advertising                    500    

Depreciation                 3,200    

Car & Truck Expense       1,360    

Employee Compensation  5,000    

Education                    1,000                          11,060  

Net Income                                               20,940  

   

Therefore, the net income that Smith should report from his business after considering all the cash receipts and all the expenditures associated with his business is $20,940. All the expenses are to be deducted from income.

6 0
3 years ago
Which fifth factor of production do many economists now include in addition to the four traditional factors of​ labor, capital,​
Tomtit [17]

Answer:

The correct answer is E, Information Resources.

Explanation:

Factors of production include Labor, Capital, Entrepreneurs and physical resources. But in the recent years, information has become the vital resource for organizations. Correct information and knowledge about a specific thing is crucial to the organization. For example if a company wants to introduce its new product and specifies a target audience, if the company doesn't get the accurate information about the needs and demands of that specific target area, other factor of production won't be of any use. So this information resource has become a vital and important part of the factors of production.

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3 years ago
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Serga [27]

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Compared to traditional nonprofit startups, enterprising nonprofits are far less likely to survive in business after the first f
mash [69]

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