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Andre45 [30]
3 years ago
8

US Corp. is charged with determining which small projects should be funded. Along with this assignment, she has been granted the

use of $15,000 for a maximum of two years. She is considering three projects. Project A costs $7,500 and has cash flows of $4,000 a year for Years 1 to 3. Project B costs $8,000 and has cash flows of $3,000, $4,000, and $3,000 for Years 1 to 3, respectively. Project C costs $2,000 and has a cash inflow of $2,500 in Year 2. What decisions should she make regarding these projects if she assigns them a mandatory discount rate of 8.5 percent
Business
1 answer:
Vika [28.1K]3 years ago
4 0

Answer:

  • Project A and C given a budgetary constraint of $15,000.
  • Pick all projects if there was not constraint as they all have positive NPVs.

Explanation:

Find the NPVs of the various projects.

Project A:

= Present value of inflows - Cost

= 4,000 / 1.085 + 4,000 / 1.085² + 4,000 / 1.085³ - 7,500

= $2,716.09

Project B:

= 3,000 / 1.085 + 4,000 / 1.085² + 3,000 / 1.085³ - 8,000

= $511.52

Project C:

= 2,500 / 1.085² - 2,000

= $123.64

Seeing as she has only $15,000 to embark on projects, she should pick projects A and C.

Project A should be picked because it has the highest NPV and Project C should be picked because it can still be invested in after Project A given budgetary constraints.

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Which of the following statements are examples of labor except:
Dmitry [639]

Answer:

C) a group of church members gather clothes for a clothing drive for the poor in their community.

Explanation:

The stated example is and example of voluntary work, which by most statutes does not count as labor. Although volunteering is technically work, it does not count as labor as volunteers are not paid for what they do. Instead, they do it for an ethical purpose which is not related to getting money. Therefore, volunteers do not coun as the working labor force.

7 0
3 years ago
26. Which of the following best describes an entrepreneur? A) a person who forms and operates a business B) a person who invests
scoundrel [369]

Answer:

A) a person who forms and operates a business

Explanation:

An entrepreneur is a person who forms and operates a business. An entrepreneur is one of the factors of production. Other factors include land, labour and capital.

An entrepreneur takes up the financial risk of a business.

An entrepreneur earns profit or loss.

A shareholder is a person who invests in an existing business

A bondholder is a person who lends capital to a new business

I hope my answer helps you.

3 0
3 years ago
Suppose you invest $ 4 comma 000 today and receive $ 9 comma 250 in five years. a. What is the internal rate of return​ (IRR) of
Dovator [93]

Answer:

IRR is 18.25%

Annual amount is -$0.225 which closest to zero dollar,because at irr the investment return is zero

Explanation:

The formula for IRR in excel is :irr(values)

The formula can be applied to the cash outflow of $4,000 and cash inflow of $9,250 in five years' time as follows

Years                Cash flow

0                       -$4,000

1                          $0

2                          $0

3                           $0

4                            $0

5                          $9,250

irr(-$4000 to $9,250)

irr is 18.25%

The amount of receivable each year can be computed using pmt formula in excel

=pmt(rate,nper,-pv,fv)

rate is the irr of 18.25%

pv is -$4000

fv is the future amount 0f $9,250

=pmt(18.25%,5,-4000,9250)

pmt=-$0.225 which closest to zero amount

6 0
3 years ago
Suppose the U.S. government imposes a quota on the number of Japanese-made cars allowed into the United States (the quota is set
Arturiano [62]

Answer:

The correct answer is c increase; remain the same.

Explanation:

Regardless of the motor market, in the technological world, audiovisual, sound and appliances, the Japanese country has evolved to become a huge world power sweeping the rest of the brands and filling all the sales lists. In addition, companies such as Toyota were gradually entering the forefront of the most Americanized and most popular vehicles in the United States. In 2007, the company displaced General Motors for the first time in the top of sales.

7 0
3 years ago
The following provides data for an economy in a certain year. Consumption expenditures $50 Imports $40 Government purchases of g
wlad13 [49]

Answer:

$150

Explanation:

The formula to compute the GDP is as follows

GDP = Consumption + Investment + Government purchase + Net exports

where,

Consumption = Consumption of expenditure = $50

Investment = Business fixed investment + change in inventory + construction of new homes & apartments

= $30 + $10 + $30

= $70

The change in inventory is

= Ending inventory - beginning inventory

= $20 - $10

= $10

Government purchase = Government purchases of goods and services = $20

Net exports

= Exports - imports

= $50 - $40

= $10

So the value of GDP is

= $50 + $70 + $20 + $10

= $150

5 0
3 years ago
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