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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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The answer to this is 462
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3 years ago
Consider a corrupt provincial government in which each housing inspector examines two newly built structures each week. All the
Anarel [89]

Answer:

a) If bribes cost $1,000 each, how much will a housing inspector make each year in bribes?

So, if the corrupt inspector approves two newly built structures each week, ti means that he is bribed twice per week. There are 52 weeks in a year, so he gets a total of 104 bribes (52 x 2). If each bribe costs $1,000, then he makes a total of: $1,000 x 104 = $104,000 in bribes per year.

c) Corrupt officials may have an incentive to reduce the provision of government services to help line their own pockets.

This statement is true. Corrupt officials will want to have private companies they can obtain bribes from provide government services. It increases the probability of them making money from bribes.

d) What if reducing the number of inspectors from 20 to 10 only increased the equilibrium bribe from $1,000 to $1,500?

Reducing the number of inspectors in hafl means that each inspector now gets twice the bribes. Because the equilibrium price did not double as did the quantity of bribes, each inspector will make less money than expected, but they will still the incentive to collect all the four bribes per week.

7 0
3 years ago
Able Towing Company purchased a tow truck for $90,000 on January 1, 2012. It was originally depreciated on a straight-line basis
attashe74 [19]

Answer:

$14,620.00

Explanation:

Depreciation on a straight line is constant throughout the useful.

For able towing, depreciation  expenses for 2012 and 2013 will be

Depreciable amount = cost price - salvage value

=$90,000- $18,000= $72,000

Depreciation will be $72,000 /10 years which will be $7200 per year

For two years will be $7200 x 2= $14,400

At the beginning of 2014, the book value will be $90,000 - $14,400=$ 75,600

new salvage value beginning 2014 is $2500

Depreciable amount is $75,600- $2,500=$73100

use-life life is 5 years.

The depreciation rate for 2014 is  $73,100 /5 years

=$14,620.00

5 0
3 years ago
Gore Global is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below.
coldgirl [10]

Answer:

D

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Flying Car

Cash flow in year 0 = -$200,000

Cash flow in year 1 = 50,000

Cash flow in year 2 = 50,000

Cash flow in year 3 =80,000

Cash flow in year 4 =100,000

IRR = 13%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

7 0
3 years ago
what you would do if, in an interview for a merit position, you were asked your political party affiliation. What would you do i
Igoryamba

Answer:

1. Political affiliation is a right for any human being then you should show the command of the position you are applying to instead of agreement to political views.

2. That is information that is detailed in your Curriculum Vitae.

3. You could state that you are not any under obligation to disclaim your political party affiliation.

4. As the objective is to select the candidate that fits the challenges of the position but nobody is ever a perfect match for a job as interest such as salary, schedule, are open to negotiation

Explanation:

7 0
3 years ago
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