Business, 15.04.2020 16:29 oofoofoof1
You are deciding between two mutually exclusive investment opportunities. both require the same initial investment of $ 10.1 million. investment a will generate $ 1.97 million per year (starting at the end of the first year) in perpetuity. investment b will generate $ 1.58 million at the end of the first year, and its revenues will grow at 2.9 % per year for every year after that.
a. which investment has the higher irr?
b. which investment has the higher npv when the cost of capital is 5.2 %?
c. in this case, for what values of the cost of capital does picking the higher irr give the correct answer as to which investment is the best opportunity?
Answers: 2
Business, 22.06.2019 13:10
A4-year project has an annual operating cash flow of $59,000. at the beginning of the project, $5,000 in net working capital was required, which will be recovered at the end of the project. the firm also spent $23,900 on equipment to start the project. this equipment will have a book value of $5,260 at the end of the project, but can be sold for $6,120. the tax rate is 35 percent. what is the year 4 cash flow?
Answers: 2
Business, 22.06.2019 17:00
Zeta corporation is a manufacturer of sports caps, which require soft fabric. the standards for each cap allow 2.00 yards of soft fabric, at a cost of $2.00 per yard. during the month of january, the company purchased 25,000 yards of soft fabric at $2.10 per yard, to produce 12,000 caps. what is zeta corporation's materials price variance for the month of january?
Answers: 2
Business, 22.06.2019 17:30
What is the sequence of events that could lead to trade surplus
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Business, 22.06.2019 17:40
To appeal to a new target market, the maker of hill's coffee has changed the product's package design, reformulated the coffee, begun advertising price discounts in women's magazines, and started distributing the product through gourmet coffee shops. what has been changed? a. the product's perceptual value. b.the product's 4ps. c. the method used in its target marketing. d. the ownership of the product line. e. the product's utility.
Answers: 3
You are deciding between two mutually exclusive investment opportunities. both require the same init...
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