Answer: A.) Project A, because it has a higher present value than project B.
B.) Project B
Explanation:
Particulars --------- project A ----------- project B
Annual cash flow -- 42000 ------------ 48000
Interest rate --------- 12% ----------------- 12%
Number of years ---- 8 -------------------- 7
Calculating the present value of both projects using a financial calculator :
At 12% rate of return :
PV of project A = $233,677.77
PV of project B = $219,060.31
B.) At 14% rate of return:
PV of project A = $222,108.80
PV of project B = $234,656.04
Answer:
Depreciation for year 3 = $115518
BV = $57798
Explanation:
The modified accelerated cost recovery method employees a classification-based approach to depreciating certain assets, once classified are assigned respective rates of depreciation. for example, assets classified under automobiles, trucks and machinery are treated under 5-year MACRS and will be depreciated at 20%, 32%, 19.2% and so on.
In this question the bridge across Rio Grande being built by Del Norte Brick co is treated under 3-year MACRS, for which the rates are as follows:
33.33% for the first year
44.45% 2nd year
14.81% 3rd year
7.41% 4th year
We have been asked to determine 3rd years' depreciation and book value, determined as follows:
Depreciation year 1: $780000 33.33% = $259974
Depreciation year 2: $780000 44.45% = $346710
Depreciation year 3: $780000 14.81% = $115518
So the depreciation for year 3 = $115518
The book value is calculated as follows:
<em>Book value = cost - accumulated depreciation</em>
BV = $780000 - $722202
BV = $57798
Answer:
B. Information Management
Explanation:
According to Wikipedia, Information management is the collection and management of information from one or more sources and the distribution of that information to one or more audiences.
It is involves collecting, storing and managing information gotten in all its forms. Of course, there are various forms of information, whether physical or electronical or otherwise.
Kristen's Job in the company involves organizing resources info (collecting), regulating how they are used and making sure they are the necessary information needed by the company's workers which is all part of the information management process.
Answer:
Share price = $85.684
Explanation:
It is given that ,Ke = cost of equity = 15% ,g = Growth = 9.2%% and Dividend and Repurchase = 40%
Now we know that
PV = CF /(Ke- g)
PV = $2.05 billion*0.4 / (0.15-0.092) = 0.84 billion /0.058
=$14137931034.483
Share price = $14137931034.483 / 165000000 million
Share price = $85.684
