1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Orlov [11]
3 years ago
14

Gander, Inc. is considering two projects with the following cash flows: Year Project X Project Y 0 ($100,000) ($100,000) 1 40,00

0 50,000 2 40,000 0 3 40,000 0 4 40,000 0 5 40,000 250,000 Gander uses the payback period method of capital budgeting and accepts only projects with payback periods of 3 years or less. a. If the projects are presented as stand-alone opportunities, which one(s) would Gander accept
Business
1 answer:
bearhunter [10]3 years ago
4 0

Answer: Project X

Explanation:

Project X payback period:

Payback period if the inflow is constant = Investment amount / Annual inflow

= 100,000 / 40,000

= 2.5 years

Project Y payback period:

= Year before payback + Amount remaining / Cash inflow in year of payback

Project Y makes no inflows from year 2 to 4 and brings in a substantial amount in year 5. Year before payback must be 4 years therefore.

Amount remaining = 100,000 - 50,000 in first year

= $50,000

= 4 + 50,000 / 250,000

= 4.2 years

Project X will be chosen as its payback period is less than 3 years.

You might be interested in
Project risk is lowest during the: Finish phase of the project life cycle. Conceive phase of the project life cycle. Develop pha
olchik [2.2K]

Answer:

Finish phase of the project life cycle.

Explanation:

The finish phase (or termination, or completion phase) of a project life cycle is basically when the project is completed and it is being delivered to the customer. Depending on the project, paperwork and documents are handed out to the customer, contracts with workers and suppliers are terminated. Everyone involved with the project must be notified about its completion and all obligations are paid for.

5 0
3 years ago
Two projects, A and B, are analyzed using ranking present worth analysis with MARR at i%. It is found that PW(A) . PW(B). If MAR
vivado [14]

Answer: The relationship between A and B project cannot be determined with the information given.

Explanation: The relationship between PW(A) and PW(B) is the correlation between project A and Project B in a portfolio.

This is not possible to be calculated with the information given.

But an expression of calculating this is;

PW is the present value of A and B projects.

MARR is the minimum acceptable rate of return

The calculate the correlation of the two project, divide MARR by the multiple of the two project.

That is;

Correlation = MARR ÷ [PW(A) × PW(B)]

Therefore;

Correlation = i11% ÷ [PW(A) × PW(B)]

This shows that the relationship cannot be determined with the limited Information supplied.

3 0
3 years ago
Malone Imports stock should return 12 percent in a boom, 10 percent in a normal economy, and 2 percent in a recession. The proba
Rufina [12.5K]

Answer:

6.11%

Explanation:

For computing the variance, first we have to determine the expected return which is shown below:

= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy)  + (expected return of the recession × weightage of recession)

= (12% × 5%) + (10% × 85%)  + (2% × 10%)  

= 0.6% + 8.5% + 0.2%

= 9.30%

Now the variance would equal to the

= Weightage × (Return - Expected Return) ^2

For boom:

= 5% × (12% - 9.3%) ^2

= 0.3645

For normal economy:

= 85% × (10% - 9.3%) ^2

= 0.4165

For recession:

= 10% × (2% - 9.3%) ^2

= 5.329

So, the total variance would be

= 0.3645 + 0.4165 + 5.329

= 6.11%

4 0
3 years ago
Suppose you want to quickly perform a customer marketing survey, while allowing some measure of anonymity and keeping costs as l
zepelin [54]
Suppose you want to quickly perform a customer marketing survey, while allowing some measure of anonymity and keeping costs as low as possible. D. Telephone of survey would be a good choice for this purpose
8 0
3 years ago
Read 2 more answers
When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Pengui
Juliette [100K]

Answer: Penguin Catering was using a Concentrated targeting strategy.

An organization that adopts a concentration strategy chooses to focus its marketing efforts on only one very defined and specific market segment. Accordingly, only one marketing mix is developed. For example, the manufacturer of Rolex watches has chosen to concentrate on the luxury segment of the watch market.

6 0
3 years ago
Other questions:
  • Carolina, the accountant for Duke Manufacturing, tells Jacob, who works in customer service for Duke, that that their company's
    12·1 answer
  • A success biologists main interest area would be
    6·1 answer
  • This is a match question im offering 25 points too cuz ik ppl don't really like this kind but bear with me!
    12·1 answer
  • What is the different between economic profit and accounting profit
    12·1 answer
  • Suppose the economy had been producing at potential output but is now experiencing a recession. Which of the following are discr
    10·1 answer
  • Retail managers can use ________ to determine which inventory items require the most attention.
    10·1 answer
  • The long-run Fisher effect links rises in inflation with rises in nominal interest rates by the same proportion, resulting in __
    9·1 answer
  • In the context of stragetic planning the streagtic goals of an orgainzation represent concrete benchmarks that managers can use
    11·1 answer
  • The Mixing Department of Complete Foods had 62,000 units to account for in October. Of the 62,000 units, 38,000 units were compl
    14·1 answer
  • All leaders tend to share several common characteristics.<br> O True<br> O False
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!