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Talja [164]
3 years ago
5

Your company has a cost of capital equal to 10%. If the following projects are mutually exclusive, and you only have the informa

tion that is provided, which should you accept?
A B C E
Payback (years) 1 5 2 5
IRR 18% 20% 20% 12%
NPV (Millions) $40 $75 $35 $100
a. A
b. B
c. C
d. B and C
e. E
Business
1 answer:
Elena-2011 [213]3 years ago
8 0

Answer:

The project to accept is:

e. E

Explanation:

a) Data and Calculations:

Cost of capital = 10%

Mutually Exclusive Projects:

                            A       B        C        E

Payback (years)   1        5        2        5

IRR                    18%   20%    20%    12%

NPV (Millions) $40    $75    $35   $100

b) Project E should be preferred over all the other projects.  It has the highest net present value (NPV) and its internal rate of return (IRR) is above the company's cost of capital.  It surpasses projects A, B, and C in financial performance terms using time-value of money analysis.

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A decrease in the price of domestically produced industrial robots will be reflected in a. the GDP deflator but not in the consu
JulsSmile [24]

Answer:

A decrease in the price of domestically produced industrial robots will be reflected in the GDP deflator but not in the consumer price index.

<u>Explanation:</u>

Although from the outset, CPI and GDP Deflator might measure something very similar, there are a couple of key contrasts. The first is that GDP Deflator incorporates just local merchandise and nothing that is imported. This is diverse because the CPI includes anything purchased by buyers, including remote merchandise.

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6 0
3 years ago
_________was established by the Better Business Bureau to evaluate ads directed at children based on guidelines that encourage s
Phantasy [73]

Answer: The Children's Advertising Review Unit.

Explanation:

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CARU regulate television, radio, print media, and virtual media, so the advertising directed at children under the age of twelve is not misleading, immoral, and is consistent with the child's cognitive ability.

<em>I hope this information can help you.</em>

4 0
3 years ago
The four traits of constructive criticism are _______.
Dmitrij [34]

Answer:

The answer to this question is given below in the explanation section.

Explanation:

Constructive criticism is the process to offer valid and well-reasoned reponed or opinion about other works, it includes both positive and negative comments in a friendly way rather than an oppositional one.

There are four traits of constructive critisim.

So, the correct answer to this question is given below:

D: Positivity, Solution-Oriented, Specific, and private.

While other options are not correct because the four traits of constructive criticism are starting from positivity, solution-oriented, specific, and private.

8 0
2 years ago
Read 2 more answers
Jim wants to buy a car, but he’ll probably only need it for a couple of years. He has a short commute to work, so he won’t be pu
jolli1 [7]
I would say bike or bus.
5 0
3 years ago
One of your customers is delinquent on his accounts payable balance. you’ve mutually agreed to a repayment schedule of $750 per
liubo4ka [24]
In this problem, we need to find the length of an annuity. We already identified the interest rate, the PV, and the payments.
Using the PVA equation: PVA =C({1 – [1/(1 +r)t]} /r
$18,000 = $750{[1 – (1/1.019) t] / 0.019}
Then solve for t:
1/1.019t= 1 − {[($18,000)/($750)](0.019)}
1/1.019t= 0.544
1.019t= 1/(0.544) = 1.838
t= ln 2.193 / ln 1.019 = 32.34 months or 2.7 in years
4 0
3 years ago
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