Business, 05.12.2019 17:31 kieramacphee6216

Suppose your boss has asked you to analyze two mutually exclusive projects-project a and project b. both projects require the same investment amount, and the sum of cash inflows of project a is larger than the sum of cash inflows of project b. a coworker told you that you don't need to do an npv analysis of the projects because you already know that project a will have a larger npv than project b. do you agree with your coworker's statement? yes, project a will always have the largest npv, because its cash inflows are greater than project b's cash inflows. no, the npv calculation will take into account not only the projects' cash inflows but also the timing of cash inflows and outflows. consequently, project b could have a larger npv than project a, even though project a has larger cash inflows. no, the npv calculation is based on percentage returns, so the size of a project's cash flows does not affect a project's npv.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 14:30

When marietta chooses to only purchase a combination of goods that lie within her budget line, she: is decreasing utility. is maximizing utility. likely has negative savings. must reduce the quantity?

Answers: 2

Answer

Business, 22.06.2019 01:00

Awidower devised his fee simple interest in his residence as follows: “to my daughter for life, then to my oldest grandchild who survives her.” at the time of the widower’s death, he was survived by his only two children, a son and a daughter, and by one grandchild, his daughter’s son. a short time later, the daughter together with her son entered into a contract to sell the residence in fee simple to a buyer. the applicable jurisdiction continues to follow the common law rule against perpetuities, but has abrogated the rule in shelley’s case. at the closing, the buyer refused to purchase the residence. can the sellers compel the buyer to do so?

Answers: 2

Answer

Business, 22.06.2019 10:30

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. ( t or f)

Answers: 1

Answer

Business, 22.06.2019 15:30

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.

Answers: 3

Answer

You know the right answer?

Suppose your boss has asked you to analyze two mutually exclusive projects-project a and project b....

Questions