Business, 17.12.2019 01:31 ericgideon

Exercise 13-14 comparison of projects using net present value [lo13-2] labeau products, ltd., of perth, australia, has $11,000 to invest. the company is trying to decide between two alternative uses for the funds as follows:

invest in project x invest in project y
investment required $ 11,000 $ 11,000
annual cash inflows $ 4,000
single cash inflow at the end of 6 years $ 25,000
life of the project 6 years
the company’s discount rate is 15%.

(a) compute the net present value of project x.
(b) compute the net present value of project y.
(c) which project would you recommend the company accept?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 13:50, WhiteWinterRose

Abarbecue sauce producer sells their product in a 20-ounce bottle. their historical process mean has been 20 ounces with a standard deviation of 0.25 ounces. if their tolerance limits are set at 20 ounces plus or minus 1 ounce, what is the process capability ratio of the bottle filling process? (5 points)

Answers: 1

continue

Business, 22.06.2019 17:10, lerasteidl

To : of $25 up to 35 2 35 up to 45 5 45 up to 55 7 55 up to 65 20 65 up to 75 16 is$25 up to $35 ?

Answers: 1

continue

Business, 22.06.2019 20:20, gbrightwell

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale. required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse. b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this. c. explain the difference between sale of receivables with recourse as oppose to without recourse.

Answers: 2

continue

Business, 23.06.2019 03:00, natalie407888

For example, the upper right cell shows that if expresso advertises and beantown doesn't advertise, expresso will make a profit of $15 million, and beantown will make a profit of $2 million. assume this is a simultaneous game and that expresso and beantown are both profit-maximizing firms. if expresso decides to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if expresso decides not to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if beantown advertises, expresso makes a higher profit if it chooses . if beantown doesn't advertise, expresso makes a higher profit if it chooses . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? expresso will choose to advertise and beantown will choose not to advertise. expresso will choose not to advertise and beantown will choose to advertise. both firms will choose to advertise. both firms will choose not to advertise.

Answers: 1

continue

You know the right answer?

Exercise 13-14 comparison of projects using net present value [lo13-2] labeau products, ltd., of per...