Consider the following three projects. all three have an initial investment of $1,000,000.
data table:
net cash inflows
project l
project m
project n
year
annual
accumulated
annual
accumulated
annual
accumulated
1
$125,000
$125,000
$175,000
$175,000
$500,000
$500,000
2
125,000
250,000
275,000
450,000
500,000
1,000,000
3
125,000
375,000
550,000
1,000,000
4
125,000
500,000
650,000
1,650,000
5
125,000
625,000
750,000
2,400,000
6
125,000
750,000
7
125,000
875,000
8
125,000
1,000,000
requirements
1. determine the payback period of each project. rank the projects from most desirable to least desirable based on payback.
2. are there other factors that should be considered in addition to the payback period? "

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:

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.

How are credit unions similar to banks