A company is considering two mutually exclusive methods of producing a new product. The relevant data concerning the alternatives appear below.

Alternative I Alternative II
Initial investment $64,000 $120,000
Annual receipts $50,000 $60,000
Annual disbursements $20,000 $12,000
Annual depreciation $16,000 $20,000
Expected life 4 yrs 6 yrs
Salvage value 0 0

At the end of the useful life of whatever equipment is chosen the product will be discontinued. The company's tax rate is 50 percent and the discount rate is 10 percent. Calculate the net present value of each alternative.

Acoase solution to a problem of externality ensures that a socially efficient outcome is to

Lambert manufacturing has $100,000 to invest in either project a or project b. the following data are available on these projects (ignore income taxes.): project a project b cost of equipment needed now $100,000 $60,000 working capital investment needed now - $40,000 annual cash operating inflows $40,000 $35,000 salvage value of equipment in 6 years $10,000 - both projects will have a useful life of 6 years and the total cost approach to net present value analysis. at the end of 6 years, the working capital investment will be released for use elsewhere. lambert's required rate of return is 14%. the net present value of project b is:

Serious question, which is preferred in a business? pp or poopoo?