Answer:
PLAN A
Year Cashflow [email protected] PV
$'m $
0 (12.4) 1 (12.4)
1 14.88 0.8905 13.25
NPV 0.85
PLAN B
Year Cashflow [email protected] PV
$'m $'m
0 (12.4) 1 (12.4)
1-20 2.2034 7.3309 16.15
NPV 3.75
Project B should be accepted
Explanation:
In this case, we need to discount the cash inflow of plan A at 12.3% for 1 year and then deduct the initial outlay from the present value of cash inflow. The discount factor could be derived from the present value table.
For plan B, we will discount the cash inflow at 12.3% for 20 years. In this case, we will use the annuity factor for 20 years. Thereafter, we will multiply the cashflow by the annuity factor for 20 years to obtain the present value. The initial outlay will be deducted from the present value so as to obtain the net present value(NPV).
The annuity factor can be obtained from the present value of annuity table.
The project with the higher NPV will be accepted.
I think the answer is D because I took math all my school years and I’m smart.
marketing strategy I believe
Answer:
B) Quantitative
Explanation:
Quantitative questions collecting data often begin with "how many" or "how much."
Answer: Keynesian Economic Theory
Explanation: The policy adopted by the President was to cut back taxes and increase government spending on road, bridges and schools. This policy of the government is called the expansionary fiscal policy which is used to combat an economy suffering from recession. The Keynesian theory also supports the argument that when an economy is suffering from recession, economic output is influenced by aggregate demand. Thus, the government and use its fiscal policy tools to bring the economy out of recession. It also supports that the Fed can also use its monetary policy to bring the economy out of recession. But since here taxes and government spending are uses, we can say that Obama was a proponent of Keynesian Economic theory.
