The cash flows for three alternatives are as follows: (a) Based on payback period, which alternative should
Question:
The cash flows for three alternatives are as follows:
(a) Based on payback period, which alternative should be selected?
(b) Using future worth analysis, and a 12% interest rate, determine which alternative should be selected.
Transcribed Image Text:
Year -$500 -$600 -$900 -400 -300 350 200 200 250 300 200 4 300 250 200 200 350 200 400 150 200 3.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (15 reviews)
a Payback Period Payback A 4 150350 Year 44 Payback B Yea...View the full answer
Answered By
OTIENO OBADO
I have a vast experience in teaching, mentoring and tutoring. I handle student concerns diligently and my academic background is undeniably aesthetic
4.30+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
The cash flows for projects A, B, and C are given below. Calculate the payback period and net present value for each project (assume a 10% discount rate). If A and B are mutually exclusive and C is...
-
The cash flows for two investment projects are as given in Table P6.20 (a) For project A, find the value of X that makes the equivalent annual receipts equal the equivalent annual disbursement at i =...
-
The cash flows for a certain project are as given in Table P6.10. Find the equivalent annual worth for this project at i = 10%, and determine the acceptability of the project. Net Cash Flow n...
-
Doug Robinson and Dante are considering the possibility of opening their own manufacturing facility. They expect first-year sales to be $800,000, and they feel that their variable costs will be...
-
Use the graph of the function f to create a table of values for the given points. Then create a second table that can be used to find f-1, and sketch the graph of f-1, if possible. 1. 2. y 4. + 2 4...
-
Blog & Twitter Inc. manufactures ergonomic devices for computer users. Some of their more popular products include glare screens (for computer monitors), keyboard stands with wrist rests, and...
-
List three profitability ratios and discuss how these ratios are used to assess a company's performance.
-
1. Identify the ethical issues involved in the case from a consequentialist and deontological perspective (refer to Chapter 2). 2. Identify the management issues involved in the case. For example,...
-
Swathmore Clothing Corporation grants its customers 30 days??credit. The company uses the allowance method for its uncollectibleaccounts receivable. During the year, a monthly bad debt accrual ism 2...
-
During the first month of operation, Graham Expeditions recorded the following transactions. Describe what has happened in each of the transactions (a) through (k). J. D. Rakes, Capital J.D. Rakes,...
-
Consider three mutually exclusive alternatives. The MARR is 10%. (a) For Alt. X, compute the benefit-cost ratio. (b) Based on the payback period, which alternative should be selected? (c) Determine...
-
Three mutually exclusive alternatives are being considered: At the end of its useful life, an alternative is not replaced. If the MARR is 10%, which alternative should be selected: (a) Based on the...
-
A student makes the following observation: This month the euro depreciated sharply against the U.S. dollar. That was good news for attendance at Disneyland Paris and bad news for attendance at Walt...
-
Anita is working for a garment factory stitching material on an hourly basis.She is paid based on a piecework compensation plan whereby the base rate is RM5 per hour. Within each hour, Anita must...
-
For inspection by a company and taxable at the same place to finance a new factory by issuing a bond. It is likely that the nominal interest rate on the bond will be somewhat lower than the expected...
-
Davie's Tavern pours a standard of 100 pints of beer from each 50-litre keg. If each keg costs $345.00. What should a pint of beer sell for given a 50% beverage cost on draft beer?
-
Provide examples for each question!!!! Major is BSIT 1. (If people are an Interdisciplinary Studies major focus on their dominant field). How does their field use communication to present information...
-
Summarize in your own words what the Unit 1 Narrative Essay Assignment is asking you to do( three sentences) What questions do you have about the Unit 1 Narrative Essay assignment? This is the...
-
(a) Outline how you would explain to your production operations manager the process of charging indirect costs to cost units. (b) What are the factors which would influence how the costs of...
-
What are the key elements of a system investigation report?
-
Bill Gates, cofounder and chairman of Microsoft, appeared on American TV interview show Charlie Rose in July 2012. He spent the bulk of his hourlong interview discussing the work of the charitable...
-
You will receive $50 interest every six months from your investment in a corporate bond. The bond will mature in five years from now and has a face value of $1,000. This means that if you hold the...
-
The following table represents the thallium production and apparent consumption in the United States for the years 2004 through 2010. Unit value is the value in actual dollars of one metric ton (t)...
-
A 10year $1,000 bond pays a nominal rate of 9% compounded semiannually. If the market interest rate is 10% compounded annually and the general inflation rate is 6% per year, find the actual- and...
-
Macmillan Learning Gains and Losses from Trade in the Specific-Factors Model - End of Chapter Problem Resources Home produces two goods, computers and wheat, for which capital is specific to...
-
Work with a small group to conduct a close reading of the rest of Chapter 10. Focus first on how characters are developed, and then think about what events are advancing the plot. Use sticky notes to...
-
E [ rm ] - rf= .08, and rf= .03, calculate expected return for beta=1.2 1, 12.6% 2, 11.8% 3, 13.2% 4, 12.8%
Study smarter with the SolutionInn App