Savings account is what would go in the blank.
Answer:
b. project A; because its NPV is about $4,900 more than the NPV of project B
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Mutually exclusive projects are those projects where only one project is selected for investment after analysis. NPV is the most preferred method in the evaluation of mutually exclusive projects for capital budgeting. That project is accepted which has higher positive NPV.
Net present value of Project A =$13,157.24
Net present value of Project A =$8,256.98
Difference = $13,157.24 - $8,256.98 = $4,900.26
Net Present value working is made in MS Excel File which is attached with this answer, please find it.
Answer:
Present Value = $290
Explanation:
The present value of a future payment
Where r discount rate
t is the number of years until the payment will be received.
PV = Present Value = ?
FV = Payment = $4,400
r= 8.3% = 0.083
N = 20 - 6 = 14
PV = $4400 / (1 + 0.083)(20 - 6)
= $4400 / (1.083 * 14)
= $4400 / 15.162
= $290.1992
≅ $290
Present Value = $290
Your answer would be, The <ol> and </ol> tags must be at the start, and end of an ordered list.
<OL> and </OL>
Hope that helps!!! Hope that was one of the choices given, since you haven't put any choices, so I'm guessing.
Hope that helps!!!! ( Answer: <ol> and </ol> )
