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sveticcg [70]
2 years ago
6

You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.2

5% for project A and 10.75% for project B. Which project should you accept and why?
a. project A; because its NPV is about $335 more than the NPV of project B.
b. project A; because it has the higher required rate of return.
c. project B; because it has the largest total cash inflow.
d. project B; because it returns all its cash flows within two years.
e. project B; because it is the largest sized project.
Business
1 answer:
postnew [5]2 years ago
5 0

Answer:

a. project A; because its NPV is about $335 more than the NPV of project B.

Explanation:

As in the question it is mentioned that the required rate of return for project A and project B is 11.25% and 10.75% respectively.

Here we have to determined the net present value for both projects having different required rate of return

So based on the net present value the first option is correct as the project A is more than the project B

Therefore the first option should be accepted

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The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last unit of bananas consumed is
allsm [11]

Complete question:

The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last unit of bananas consumed is 8. What set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium

a. $8 and $12

b. $6 and $4

c. $16 and $9

d. $4 and $6

Answer:

$6 and $4  set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium.

Explanation:

Given,

The marginal utility of the last unit of apples consumed = 12

The marginal utility of the last unit of bananas consumed = 8

Now ,

To find :

The market level for apples and bananas, respectively, will be compatible with the consumer's equilibrium:

= \frac{12}{3} = $6

= \frac{8}{2} = $4

$6 and $4  set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium.

6 0
2 years ago
Match the elements of the buying equation theory with their definitions.
ANEK [815]

Answer:

were is the question

Explanation:

4 0
2 years ago
Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of
ludmilkaskok [199]

Answer:

Decrease by $132,100

Explanation:

Computation of the given data are as follow:-

We can calculate the  Operating Income by using following formula:-

Fixed Cost = Fixed Cost * Dropped Rate

= $193,000 * 30/100

= $57,900

So, Operating Income = Sales - Variable Cost - Fixed Cost  

= $,1050,000 - $860,000 - $57,900

= $132,100

According to the Analysis, the operating income will be decrease by $132,100 if the business segment is eliminated.

8 0
2 years ago
The manufacturing cost of an air-condioning unit is $544, and the full-replacement extended warranty costs $113. If the manufact
Likurg_2 [28]

Answer:

$11,457,522

Explanation:

If the full extended warranty costs are $113 per unit replaced, and 20% of the 506,970 units sold will be replaced, then the total warranty costs are:

total warranty costs = total number of units sold x percentage of units that need warranty replacement x cost per unit replaced

total warranty costs = 506,970 units x 20% x $113 per unit = $11,457,52

7 0
2 years ago
Read 2 more answers
A spotter stands near the lifter with his feet wide and hands near the lower back. He pays careful attention to the bar and make
patriot [66]
Hello!

This is most likely a spotter for a squat. The key word that shows that this spotter is for a squatter is making sure the lifter does not fall backwards. An overhead press or bench press would require a lifter to be lying down and not standing. A dead lift requires leaning forward and would not cause a lifter to fall backwards.

Hope this helps!
8 0
2 years ago
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