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AlladinOne [14]
3 years ago
13

Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$31 $7 $12 $22 Project

B -$19 $13 $6 $5 What are the projects' NPVs assuming the WACC is 5%
Business
1 answer:
katrin [286]3 years ago
3 0

Answer:

Project A's NPV = $5.56

Project B's NPV = $3.14

Explanation:

year          project A        project B

0                  -$31                -$19

1                     $7                 $13

2                   $12                 $6

3                  $22                 $5

Project A's NPV = -$31 + $7/1.05 + $12/1.05² + $22/1.05³ = -$31 + $36.56 = $5.56

Project B's NPV = -$19 + $13/1.05 + $6/1.05² + $5/1.05³ = -$19 + $22.14 = $3.14

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Adeline runs a multi-cuisine restaurant. On the day of a big event at the restaurant, the chefs run out of cooking gas. At this
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Answer:

D. The GII decision style

Explanation:

This is the situation or technique whereby a leader calls his team together seeking ideas and input (brainstorming together) to find solutions to apparent problems facing them. The overall decision of the group brainstorming is what is accepted and used. This is based on the Vroom–Yetton contingency model is a situational leadership theory of industrial and organizational psychology. In the GII decision style, the final decision is no longer the leaders decision again. The leader allows free flow of discussion during the brainstorming session and doesn't impose his will. Here, Adeline calls her staff together to brainstorm a solution to the finished gas problem in front of them.

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4 years ago
You need $25,000 today and have decided to take out a loan at 7 percent for five years. Which one of the following loans would b
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Answer:

Amortize loan woul´d be the best loan

Explanation:

Even though there are no options in the question, the amortize loan coul´d be the best loan, with equal principal payments.

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4 0
3 years ago
Managers use a predetermined overhead rate for which of the following reasons?
Rashid [163]

Answer:

Option A and B

Explanation:

The company desires to estimate the cost of the job so that it can minimize it by emphasizing control. This is one of the major reasons why the companies estimate cost of the job, product or service. So option A is correct.

Option B is also correct because the companies have to form contracts with its customers and for that reason predetermined overhead rates helps a lot estimating the price of the product which the company and customer can agree upon.

Option C is incorrect because predetermined costs are estimates and estimates are not always accurate.

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4 0
3 years ago
New classical economists say that an unanticipated increase in aggregate demand first: Group of answer choices increases the pri
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Answer:

increases the price level and real output, and then reduces short-run aggregate supply such that the economy returns to the full-employment level of output.

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In the case of New classical economists, if there is an increase in aggregate demand i.e. non expected would rise the level of price and real output. After this decrease the aggregate supply i.e. short run in order to get the economy return to the full employement output level

Therefore as per the given situation, the first option is correct

And, the rest of the options would be incorrect

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3 years ago
The broadcast that reported a decline in total output for the United States probably got some of its information from the govern
Iteru [2.4K]

Answer:

The correct answer is GDP.

Explanation:

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