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:
4.95%
Explanation:
For computing the yield to maturity when expressed in real terms, first we have to find out the yield to maturity by applying the RATE formula that is shown in the attachment
Given that,
Present value = $989.40
Future value or Face value = $1,000
PMT = 1,000 × 7% ÷ 2 = $35
NPER = 10 years × 2 = 20 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the yield to maturity is 7.15%
Now in real terms, it would be
= 7.15% - 2.2%
= 4.95%
The answer to that is gonna be answer B
Answer:
The standard deviation of the portfolio is 26.15%
Explanation:
First the formula of variance of a portfolio is used.
Take the square root of variance to get standard deviation.
(0.3)^2 × (0.35)^2 + (0.7)^2 × (0.3)^2 + 2 × 0.3 × 0.7 × 0.35 × 0.3 × 0.3 = 0.068355
Taking square root of 0.068355 to get standard deviation that is 26.15%
Answer:
<em>B. Critical success factors (CSFs)</em>
Explanation:
Critical Success Factors, or CSFs, <em>are measures of incentives, events, or requirements needed within such a program or task to achieve a goal. </em>
Prometheus Corp. measures it's staffs performance in the company and awards it accordingly.
These factors vary by organization, representing current and future priorities. Whether it was a restaurant, an insurance broker or a vendor, planning the approach with those things that allow the company to accomplish its task is important.
Such crucial factors mostly have a significant impact on how productive and efficient an organization is in achieving strategic objectives inside the project and are critical to maintaining a competitive edge.
