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Nikolay [14]
3 years ago
11

Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all invest

ments. The company is considering two different investments. Each require an initial investment of $15,000 and will produce cash flows as follows: End of Year Investment A B 1 $ 8,000 $ 0 2 8,000 0 3 8,000 24,000 The present value factors of $1 each year at 15% are: 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 Which investment should Alfarsi choose?
Business
1 answer:
ohaa [14]3 years ago
6 0

Answer:

PV = $18,265.6

Explanation:

We will calculate the present value of the first investment ussing the annuity factor

annuity per year x factor = PV

8,000 x 2.2832 =  18,265.6

Then we calculate the PV of the second investment by multiplying the third year cash flow by the present value of $1 in 3 years

nominal x factor = PV

24,000 x 0.6575 = 15,780

the first alternative PV is higher than the second, so it is a better option

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Kendra owns a sporting goods store. She is in court because of a breach of contract lawsuit against her supplier. One of the ter
Olenka [21]

<u>Answer:</u>

<em>Yes, but only to clarify the ambiguous contract terms </em>

<em></em>

<u>Explanation:</u>

Breach of contract is a legitimate reason for activity and a sort of common wrong, wherein a sound understanding of anticipated trade isn't regarded by at least one of the gatherings to the agreement by non-execution or obstruction with the other party's presentation.

A material breach is the most genuine type of break of agreement. In these cases, somebody has failed to maintain their obligations as spread out in the contract. At the point when this happens, the harmed party can seek after harms in a standard suit. In the end, when a contractual worker finishes an undertaking yet isn't paid, this is viewed as a material breach.

6 0
3 years ago
Indicate whether the following statements are positive or normative. a. Raising interest rates encourages people to save: b. The
denpristay [2]

a. Raising interest rates encourages people to save: positive statement

b. The government ought to be more concerned with reducing unemployment: normative statement

c. The government should raise the tax on tobacco to discourage people from smoking: normative statement

d. The government should limit immigration: normative statement

e. Increasing gasoline taxes results in less disposable income: normative statement

f. The government should raise gasoline taxes and fix bridges: normative statement

<h3>What are normative and positive statements?</h3>

Normative statements come from a viewpoint or an opinion. As a result, the terms "should," "ought," or "it is preferable to" are commonly used. Normative statements can never be proven to be true.

Conversely, positive statements can often be put to the test in theory, if not always in practice. Positive statements are not value judgments. They are predictions of what it is, was, or will become.

Thus, option A is a positive statement and rest are normative statements.

Learn more about positive and normative statements here:

brainly.com/question/14408475

#SPJ4

3 0
2 years ago
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month
Ad libitum [116K]

Answer:

75%

Explanation:

Given that,

Total Sales = $174,000

Total Variable expenses = $43,500

Total contribution margin = $130,500

Total fixed expenses = $86,175

Net operating income = $44,325

Overall contribution margin (CM) ratio for the company:

= (Total contribution margin ÷ Total sales) × 100

= ($130,500 ÷ $174,000) × 100

= 0.75 × 100

= 75%

5 0
3 years ago
Samsonite has declared a 90% stock dividend. At the time of the declaration, Samsonite's stock was selling for $250 per share. I
NeTakaya

Answer:

$131.58

Explanation:

The computation of the new stock price is shown below:

= Selling price of stock per share ÷ current number of shares

= $250 ÷ 1.90

= $131.58

Since the 90% dividend is declared. It means for each share 90% dividend is declared so after stock dividend, the number of shares would be

= 1 + 90%

= 1 + 0.9

= 1.9

We simply divide the selling price by the current number of shares

4 0
3 years ago
Following are the transactions of a new company called Pose-for-Pics.Aug. 1 Madison Harris, the owner, invested $6,250 cash and
madam [21]

Answer:

Find attached trial balance as well the general ledgers prepared extracting trial balance

Explanation:

Preparation of trial balance  could not be carried out straightaway , I had to first of all prepare the relevant ledgers before extracting trial balance.

Download xlsx
7 0
3 years ago
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