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denis23 [38]
3 years ago
10

Durango Co. must decide between two investment opportunities. Information about the two opportunities is listed below: Opportuni

ty 1 - Present value of cash inflows is $123,000 and the present value of cash outflows is $112,323. Opportunity 2 - Present value of cash inflows is $14,232 and the present value of cash outflows is $7,232. Which investment yields a higher rate of return?
Business
1 answer:
Alekssandra [29.7K]3 years ago
8 0

Answer:

Opportunity 2

Explanation:

Calculation to determine Which investment yields a higher rate of return

Based on the information given OPPORTUNITY 2 investment yields a HIGHER rate of return reason because the PRESENT VALUE INDEX is 1.968 calculated as :

Rate of return=$14,232/$7,232

Rate of return= 1.968

Which is HIGHER than the present value index of both opportunity 1 and opportunity 3.

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Answer:

Operations management is relevant to improve the overall productivity in an organization as it involves working with all departments in the organization.

Explanation:

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He or she maintains contact with; the financial manager to agree on the budget needed for production, the purchasing manager to determine what raw materials will be purchased for production, the personnel manager to sort out the human resources required for the production process, and the marketing manager to ensure that customer needs are taken into consideration when producing goods and services.

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Straight rebuy -

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