Business, 05.05.2020 08:19 beverly8075

Dwight Donovan, the president of Jordan Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of three years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $115,000 and for Project B are $31,000. The annual expected cash inflows are $45,431 for Project A and $13,353 for Project B. Both investments are expected to provide cash flow benefits for the next three years. Jordan Enterprises’ cost of capital is 6 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required Compute the net present value of each project. Which project should be adopted based on the net present value approach? Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach?

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 09:00, tiffanibell71

Asap describe three different expenses associated with restaurants. choose one of these expenses, and discuss how a manager could handle this expense.

Answers: 1

continue

Business, 22.06.2019 11:30, brucewayne390

Schonhardt corporation's relevant range of activity is 2,500 units to 5,500 units. when it produces and sells 4,000 units, its average costs per unit are as follows: averagecost per unitdirect materials $ 7.60direct labor $ 2.90variable manufacturing overhead $ 1.65fixed manufacturing overhead $ 2.90fixed selling expense $ 0.95fixed administrative expense $ 0.65sales commissions $ 0.75variable administrative expense $ 0.65if 4,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to: multiple choicea $16,800b $11,400c $11,600d $15,400

Answers: 3

continue

Business, 22.06.2019 21:00, kebo63

After hearing a knock at your front door, you are surprised to see the prize patrol from a large, well-known magazine subscription company. it has arrived with the good news that you are the big winner, having won $21 million. you have three options.(a) receive $1.05 million per year for the next 20 years.(b) have $8.25 million today.(c) have $2.25 million today and receive $750,000 for each of the next 20 years. your financial adviser tells you that it is reasonable to expect to earn 13 percent on investments.

Answers: 3

continue

Business, 23.06.2019 06:10, ofmiceandkj1

The a/p clerk of a company writes the checks for vendors, and the controller signs the checks. the a/p clerk hasdevised a plan to give herself a raise. she creates a new vendor for her friend's business and creates two purchaseorders for random car detailing services for $75 and $70. she writes the checks to pay these new vendors knowing thecontroller will only pay close attention to checks over $100. she delivers the checks to her friend to deposit in his bankaccount, and then he writes her a personal check for the full amount of $145.ceventually, what will be the effect of her actions? what can the company do to prevent this type of behavior? due mondav

Answers: 1

continue

You know the right answer?

Dwight Donovan, the president of Jordan Enterprises, is considering two investment opportunities. Be...