Which of the following two mutually exclusive alternatives should be selected if a 7 per cent interest
Question:
Which of the following two mutually exclusive alternatives should be selected if a 7 per cent interest rate is used for the calculation of net present value?
Transcribed Image Text:
Project X Project Y Net cash flow Year 0 £ (68,000) (58,000) Net cash flow Year 1 £ 30,000 42,000 Net cash flow Year 3 £ 48,000 21,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (6 reviews)
Using the net present value NPV method Project X is the better alternative Calculating NPV NPV is ca...View the full answer
Answered By
User l_998468
I have extensive tutoring experience, having worked as a private tutor for over three years. I have tutored students from different academic levels, including high school, undergraduate, and graduate levels. My tutoring experience has taught me to be patient, attentive to student needs, and effective in communicating difficult concepts in simple terms.
I have a strong background in statistics, probability theory, data analysis, and data visualization. I am proficient in using statistical software such as R, Python, and SPSS, which are commonly used in academic research and data analysis. Additionally, I have excellent communication and interpersonal skills, which enable me to establish rapport with students, understand their learning styles, and adapt my teaching approach to meet their needs.
I am passionate about teaching and helping students achieve their academic goals.
0.00
0 Reviews
10+ Question Solved
Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
Question Posted:
Students also viewed these Business questions
-
Which of the following two mutually exclusive alternatives should be selected if a 5 per cent interest rate is used for the calculation of net present value? Machine X project Machine Y project Net...
-
Which of the following two mutually exclusive alternatives should be selected if a 6% interest rate is used for the calculation of net present value? Machine X project Machine Y project Net cash flow...
-
Using internal rate of return, which of the two projects in Question 46.19A would be preferred? Data from Question 46.19 Which of the following two mutually exclusive alternatives should be selected...
-
Two capillary tubes of the same radius r but of lengths & and 1 are fitted horizontally to the bottom of a tall vessel containing a liquid at constant Pressure head and flowing through these tubes....
-
The feature of arbitrage pricing theory (APT) that offers the greatest potential advantage over the simple CAPM is the: a. Identification of anticipated changes in production, inflation, and term...
-
At a local university 54.3% of incoming first-year students have computers. If 3 students are selected at random, find the following probabilities. a. None have computers. b. At least one has a...
-
A chemical engineer studied the effect of the amount of surfactant and time on clathrate formation. Clathrates are used as cool storage media. Table B. 8 summarizes the experimental results. a. Fit a...
-
M. Gonzales has the following transactions during August. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis as shown in the chapter. Aug. 1 Opens an office as a...
-
Give an overview of the company. Choose the type of firm, the banking structure of the firm in terms of current and past investments, what industry it is in, and any relevant history or background...
-
You are a financial advisor working in Scarborough, Ontario. One day, you get a phone call from Priya Patel and you arrange a first meeting with her. You find out that she is a referral from one of...
-
Equipment with an estimated useful economic life of four years has an NPV of 4,200 using an 8 per cent discount rate. What is the annualised equivalent of the 4,200 NPV?
-
Using internal rate of return, which of the two projects in Question 46.17 would be preferred? Data from Question 46.17 Which of the following two mutually exclusive alternatives should be selected...
-
Explain the following:"The effectiveness of internal control over financial reporting requires an integrated analysis of the COSO control components to reduce the residual risk to an acceptable...
-
Why is it useful to integrate the collection of online and offline metrics?
-
Identify two examples of branding in financial services (e.g., specific types of retail bank accounts or insurance policies) and define their characteristics. How meaningful are these brands likely...
-
Describe four different types of site on which online display advertising for a car manufacturers site could be placed.
-
Visit the facilities of two competing service firms in the same industry (e.g., banks, restaurants, or gas stations) that you believe have different approaches to service. Compare and contrast their...
-
Compare the effectiveness of different methods of online advertising including display advertisements, paid search marketing and affiliate marketing.
-
Arktec Manufacturing must choose between the following two capacity options: a. What would the cost be for each option if the demand level is 25,000 units per year? If it is 75,000 units per year? b....
-
Is times interest earned meaningful for utilities? Why or why not?
-
The Rovers Football Club are languishing in the middle of the Premier Division of the Football League. The Club have suffered a loss of 200,000 in their last financial year and whilst receipts from...
-
Moray Ferries Ltd own a single ship which provides a short sea ferry service for passengers, private vehicles and commercial traffic. The present ship is nearing the end of its useful life and the...
-
Hirwaun Pig Iron Co. operate a single blast furnace producing pig iron. The present blast furnace is obsolete and the company is considering its replacement. The alternatives the company is...
-
Bell Co has decentralised and divisional managers are allowed to make their own investment decisions subject to confirmation by the main company board.Because each of the three divisions (Ding, Dong...
-
Based on the below data for a bond issuance, What is the sale price of the bond? Principal: 8% Coupon rate: 8% Market rate: 10% Term: 4 years 4-year factors: 8% PV of $1 8% pv of annuity 10% pv of $1...
-
On 31/12/23 XYZ Corp is involved in a LEGAL CASE Involving air pollution. In the event that XYZ corp is found to be liable, damages have to be paid. At the moment, XYZ Corp does not recognize a...
Study smarter with the SolutionInn App