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Degger [83]
3 years ago
12

RainMan Inc. is in the business of producing rain upon request. They must decide between two investment projects: a new airplane

for seeding rain clouds or a new weather control machine built by Dr. Nutzbaum. The discount rate for the new airplane is 9 percent, while the discount rate for the weather machine is 39 percent (it happens to have higher market risk). Which investment should the company select and why
Business
1 answer:
NeX [460]3 years ago
7 0

Complete data:

Year___AirplaneWeather __ Machine

0 _______–90 _________ –900

1 _______500 ___________550

2 _______600 ____ ______600

3 _____________________685

Answer:

Weather machine, because it has a higher equivalent annual cash flow.

Explanation:

Discount rate :

New airplane = 9% = 0.09

Weather machine = 39% = 0.39

Calculate the Equivalent annual cashflow of each :

Using the relation :

New airplane :

(-900+500/1.09) + (600/1.09^2) * 0.09 / (1-1/1.09^2)

(−900+500÷1.09+600÷1.09^2)×9%÷(1−1÷1.09^2)

= 36.2249

Equivalent Annual cashflow of Weather Machine=(−900+550÷1.39+600÷1.39^2+685÷1.39^3)×0.39÷(1−1÷1.39^3)

= 38.0828

Based on the result of the equivalent annual cashflow, the company should opt for investing in weather machine.

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Answer:

The correct answer is: Most people wish to avoid responsibility, have little ambition, and want security.

Explanation:

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The motivation of workers were purely by bonus and monetary benefits. The general idea was that workers were inspired to perform the job if they are paid according to their contributions. Workers are considered economic beings.  Man was considered a rational and not an emotional being.  It assumes that man wants only money, and this assumption provides the maximum opportunity to exploit employees.  The idea that people avoid responsibility is due to the hierarchy and chain of command, the responsibility of the work rests on the superior.

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The level of the Baring market index is 22,300 at the start of the year and 26,800 at the end. The dividend yield on the index i
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8 0
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4 0
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<h2><em><u>Question:</u></em></h2>

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<em>C. To better understand their target segments.</em>

<h2><em><u>Answer:</u></em></h2>

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<h2><em><u>Explanation:</u></em></h2>

<em>→</em><em>marketing efficiency by directing effort specifically toward the designated segment in a manner consistent with that segment's characteristics.</em>

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Hope this helps 
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