Assume that your firm wants to choose between two project options:
Project A: Br. 500,000 invested today will yield an expected income stream of Br150, 000 per year for 5 years, starting in Year 1.
Project B: an initial investment of Br 400,000 is expected to produce this revenue stream: Year 1 = 0, Year 2 = Br 50,000, Year 3 = Br 200,000, Year 4 = Br300, 000, and Year 5 = Br200, 000. Assume that a required rate of return for your company is 10% and that inflation is expected to remain steady at 3% for the life of the project. Which is the better investment? Why?

Answers

Answer 1

Answer: Project B should be chosen as it has a higher NPV of $70,314.97

Explanation:

You need to find the Net Present Value of both projects. The better investment is the one with a higher Net Present Value.

As there will be inflation, this needs to be included in the required return:

= 10% + 3%

= 13%

This will be the rate for discounting.

Project A:

Net Present Value = Present value of cash inflows - Cash invested

Present value of cash inflows:

This is a constant inflow so is an annuity. Present value will be:

= Amount * Present value interest factor of annuity, 5 years, 13%

= 150,000 * 3.5172

= $527,580

Net Present value = 527,580 - 500,000

= $27,580

Project B:

Net Present Value = Present value of cash inflows - Cash invested

= 50,000 / (1 + 13%)² + 200,000 / 1.13³ + 300,000 / 1.13⁴ + 200,000 / 1.13⁵ - 400,000

= 470,314.97 - 400,000

= $70,314.97

Project B should be chosen as it has higher NPV.

Assume That Your Firm Wants To Choose Between Two Project Options:Project A: Br. 500,000 Invested Today

Related Questions

MILLIONS OF TINY DROPLETS OF WATER MAKES A ____

Answers

pretty sure that it’s raindrop
It’s will be a raindrop

what are the purpose of community forestry?,​

Answers

Answer:

Hutan Kemasyarakatan bertujuan untuk meningkatkan kesejahteraan masyarakat setempat melalui pemanfaatan sumber daya hutan yang optimal, adil dan berkelanjutan dengan tetap menjaga kelestarian fungsi hutan dan lingkungan hidup.

Explanation:

Community forestry is to maintain healthy forests while serving local livelihood needs. The objectives of community forestry can vary: forest protection, household use, or commercial production. Multiple objectives often coexist because of the diverse needs of communities.

PLEASE PLEASE PLEASE HELP ME. I REALLY NEED HELP. Thank you so much!!!!!
Q1. While traveling in Scotland, Moria Noel Xavier goes by her Scottish maiden name, McTaggart. This is an example of

1. Cultural variability

2. Social Construction

3. Situational Identity

4. Symbolic Identity

5. None of the answer choices


Q2. Wearing a "kiss me, I am Irish" shirt on St. Patrick's day is an example of

1. None of the answer choices

2. Symbolic Identity

3. Cultural Variability

4. Social Construction

5. Situational Identity


Q3. Klaus is catching up with his siblings after a crisis brings them together again. Klaus feels he has been underperforming after comparing himself to his siblings. In this instance, Klaus siblings are acting as

1. An out-group

2. An in-group

3. Reference group

4. Primary group

5. Secondary group


Q4. What factors aid individuals in exiting homelessness in Los Angeles?

1. Employment

2. Employment and government policies

3. Government policies

4. Family support

6. Family support and government policies


Q5. Lil and Phil can only be told apart because Lil wears a bow everyday. This is an example of

1. Gender Identity

2. Gender Nonconformity

3. Gender Expression

4. Gender

5. All of the answer choices

Answers

Answer:

The answer is 3 i am positive

Explanation:

hope this helps your welcome.

So sánh sự giống và khác nhau của hai mô hình kinh tế Nhật Bản và Trung Quốc với tư cách là những nước có sự phát triển kinh tế thần kỳ để có thể chiếm lĩnh thị trường thế giới. Bài học rút ra cho chúng ta

Answers

Explanation:

translation please? i dont understand

Why was the result of the election of 1876 controversial?

A)An election commission, not the popular or electoral vote, decided the election.
B)Hayes won the majority of electoral votes, but Tilden won the popular vote.
C)The Supreme Court decided the election after one state’s results were unclear.
D)Tilden won the popular and electoral votes, but Congress decided to elect Hayes.

Answers

Answer:

D

Explanation:

In the presidential election of 1876, Democrat Samuel Tilden ran against Republican Rutherford B. Hayes. At the end of election day, no clear winner emerged because the outcomes in South Carolina, Florida, and Louisiana were unclear. Both parties claimed victory in those states, but Republican-controlled “returning” boards would determine the official electoral votes.

Republicans and Democrats rushed to those three states to watch and try to influence the counting of the votes. The returning boards determined which votes to count and could throw out votes, if they deemed them fraudulent. The returning boards in all three states argued that fraud, intimidation, and violence in certain districts invalidated votes, and they threw out enough Democratic votes for Hayes to win. All three returning boards awarded their states’ electoral votes to Hayes

Please help me understand

Answers

Answer:

it is b

Explanation:

What are the CONS of cultural preservation on the regional development of a country

Answers

Answer:

One of the drawbacks is the high cost associated with preservation of cultural resources. The other drawback discussed in the essay is that preservation of cultural resources hinder development. The final drawback discussed is that of over- commercialization of culture.

How does a person from another country become a United States citizen? (5 points)
a. By living in the United States for at least ten years
b. By completing a process called naturalization
c. By living and working in the United States for at least five years
d. Only by marrying someone who is a United States citizen

Answers

b: by completing a process called naturalization

Explanation:

when I research it That's the only way you can become a citizen of America

Natural gas extraction in the Karoo is promoted as the solution to South Africa’s energy crisis. Discuss​

Answers

Answer:

Natural gas extraction is being promoted as the solution to South Africa’s energy crisis. Shell and other energy companies want to harness the untapped reserves of natural gas below the Karoo using fracking. This is meeting stiff opposition, particularly from residents of the Karoo who are concerned about the risks.

Natural gas extraction in the Karoo is promoted as the solution to South Africa’s energy crisis as the energy that will be used and made is a low-cost and effective measure in the making of energy.

What is an energy crisis?

An energy crisis can be defined as the part where the energy is being made become. it usually happens when there is too much energy consumption or when the energy is not being made.

The behavior that's also brought from a specific event will invariably take place if indeed the response is shown. Fracking is said to have huge socioeconomic advantages.

One of the many applications to search for shale gas from South Africa, Shell, sponsored and funded a contentious report that recommended exploiting one-tenth of said projected Karoo for fracking.

Learn more about Energy crisis, here:

https://brainly.com/question/1496484

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How does altitude affect climate patterns in a region?

Answers

Answer:

Areas at high elevations have cooler temperatures

Explanation:

1. Based on Quinlan and Cruzan cases, examine the importance of end of life issues. What documents should one prepare and keep ready and why

Answers

The Quinlan choice sets up the power of patients' desires over the state's obligation to protect life. The Cruzan choice perceives that the option to decline clinical treatment is ensured by the U.S. Constitution. A ultimate

hope this helps

In the question given below, there are two statements marked as Assertion (A) and Reason
(R). Read the statements and chose the correct option:

Assertion (A): India is rated as more developed than Sri Lanka by UNDP

Reason (R): The life expectancy and per capita income in Sri lank is more than India

Answers

Answer

"India is rated as more developed than"... is assertion and the second one is reasoning.

Explanation:

A researcher decides to record romantic partners' heart rates during conflict. This technique provides ________ data.
a) self (S)
b) informant (I)
c) life outcomes (L)
d) behavioral (B)

Answers

Answer:c) life outcomes (L)

Explanation:

Life outcome data is an information that can be obtained from an events, activities carried out, and outcomes or result in a person's life. An individual is studied and data are being generated from the events.

This data is available for scrutiny in the public and such data can be collected on marriage and speeding tickets.

Life outcome data can be used as important source of information on real life happenings and about personality of some individuals.

FILIPINO ONLY!THANK YOU IN ADVANCE:))​

Answers

What to do exactly choosee maybe 6

With the advent of abstract thought, adolescents more frequently use such terms as however, otherwise, anyway, therefore, really, and probably to express logical relationships.

a. True
b. False

Answers

The Answer is:

A. True

With the advent of abstract thought, adolescents more frequently use such terms as however, otherwise, anyway, therefore, really, and probably to express logical relationships, is a true statement. Hence, option A is correct.

What is logical relationships?

A logical connection is a technique for connecting concepts in writing. Here are several examples: "I like playing volleyball and fishing." The word "and" connects two things that a person values.

In reality, there are 4 different types of logical connections that should be acknowledged. The four different types of relationships are start to finish relationships, start to start relationships, finish to start relationships, and finish to finish relationships.

To express logical connections, one can use a variety of "conjunctions" such as and, or, because, so, prepositional phrases such as after that, in contrast, or adverbs eg thus, alternatively.

Thus, option A is correct.

For more information about logical relationships, click here:

https://brainly.com/question/1327572

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What type of currency only has value because the government's law
worth something?
Commodity money
Fiat money
Paper money
Representative money

Answers

Answer:

Fiat money

Explanation:

Fiat money is a currency (a medium of exchange) established as money, often by government regulation. Fiat money does not have intrinsic value and does not have use-value. It has value only because a government maintains its value, or because parties engaging in exchange agree on its value.

What is the expected difference between interest rates in the United States and Japan (do not need to see math, this can be answered in words and not numbers) are rates going up, going down or staying flat?

Answers

Answer:

Japan should have 3% increase in interest rate.

Explanation:

When there is Higher interest rates lenders in the country's economy have a very higher return compare to other countries. Therefore, higher interest rates tend to attract foreign capital and this will also make the exchange rate to rise such as in the case of Japan with 3% increase in interest rate that United States of America.

True or false?
Whales use clicks and sounds to communicate​

Answers

Answer:

The answer is True

According to Mill, we must establish a guideline for determining what kinds of actions can be regulated by the majority of citizens. Otherwise, the majority might impose its will on the minority.

a. True
b. False

Answers

Answer:

True

Explanation:

John Stuart Mill, once known as the most influential English-speaking philosopher of the nineteenth century, was born on May 20 1806. He made excellent contributions to different fields of study including: political and social theories, respectively.  

According to him, we must establish a guideline for determining what kinds of actions can be regulated by the majority of citizens. Otherwise, the majority might impose its will on the minority. As part of some of the remarkable contributions he made, he rightly established that it would be ideal if we clearly itemize the guidelines that will certain help in determining the type of human actions that can be regulated by the majority of the citizens. In the absence of this arrangement, the majority of the people would certainly go ahead and pose their will on those that are in the minority

what is dowary system ? write any 2/2 cause of measure of solution​

Answers

Answer:

When a girl marries, the girl's family gives money to the boy's family. Basically a trading system.

Way to prevent dowry :

Educate your daughters. Encourage them to have their own career. Teach them to be independent and responsible. Treat them (your daughter) equally without any discrimination. Do not encourage the practice of giving or taking dowry.

Explanation:

Pls vote my answer as brainliest

Answer:

Dowry system is a practice of giving money or property or some kinds of special gifts at the marriage of a daughter by the father to bridegroom or bridegroom's family. Generally dowry includes cash payment, jewels etc.Any two cause of dowry system are:

Illiteracy or lack of education.Ignorance of anti-dowry laws and Greedy Groom families demand it.

Any two measure of solution of dowry system are:-

Educating children about the drawbacks of dowry system, and making sure that they inculcate the spirit to boycott it, is the long-term solution to the issue. To eradicate this evil, we need to learn and educate others about the ill-effects of it and it can be achieved by providing equal rights to both genders.

Explanation:

If you write these then the teacher would have no way to cut your marks except handwriting !

the strongest texan opposition to the civil war came from

Answers

The available options are:

a North Texas along the Red River

b. the northwestern frontier

C. the eastern border with Louisiana

d along the Rio Grande

Answer:

A. North Texas along the Red River

Explanation:

Based on the different options available, it can be concluded that the strongest Texan opposition to the civil war came from "North Texas along the Red River,"

According to historical records and in 1861 when the state of Texas conducted a state referendum on secession. However, the opposition came mostly from "North Texas along the Red River and the German counties in Central Texas.

Brendan loves woodworking. In fact, he loves it so much, he often gets lost in what he is doing, loses track of time, and is thoroughly involved. This refers to:__________
A. flow
B. resilience
C. gratitude
D. post-traumatic growth

Answers

Answer:

Option A

Explanation:

A flow state, often known informally as living in the vibe, is a psychological state during which an individual conducting an activity is entirely engaged in a sensation of energetic attention, complete engagement, and delight in the process of the task, according to optimistic psychology. In essence, flow is defined as total immersion in one's work and a corresponding shift in one's perception of time.

is the government doing enough to ensure that gender based violence protected explain​

Answers

Answer:

no

Explanation:

they still let the violent people walk free of charges after harming someone. The government is full of misogynists and homophobes. Nobody in the government cares about anyone but themselves

What is sociology thank for answering

Answers

Answer: "Sociology is the study of social life, social change, and the social causes and consequences of human behavior. Sociologists investigate the structure of groups, organizations, and societies, and how people interact within these contexts. Since all human behavior is social, the subject matter of sociology ranges from the intimate family to the hostile mob; from organized crime to religious cults; from the divisions of race, gender and social class to the shared beliefs of a common culture; and from the sociology of work to the sociology of sports. In fact, few fields have such broad scope and relevance for research, theory, and application of knowledge.

Sociology provides many distinctive perspectives on the world, generating new ideas and critiquing the old. The field also offers a range of research techniques that can be applied to virtually any aspect of social life: street crime and delinquency, corporate downsizing, how people express emotions, welfare or education reform, how families differ and flourish, or problems of peace and war. Because sociology addresses the most challenging issues of our time, it is a rapidly expanding field whose potential is increasingly tapped by those who craft policies and create programs. Sociologists understand social inequality, patterns of behavior, forces for social change and resistance, and how social systems work. As the following pages convey, sociology is an exciting discipline with expanding opportunities for a wide range of career paths."

- Careers in Sociology, The American Sociological Association

Basically what the other person said ^^


D. Answer the following questions in brie
odies?​

Answers

Answer:

where's the question?:/

where?

Sociology is the study of ​

Answers

Answer:

Social life

Explanation:

I studied about sociology.

Discuss three contributing factors that led to Xenophobia​

Answers

The three most important factors contributing to xenophobic violence are political leadership, lack of conflict resolution processes, and very few prosecutions.

hope I helped plz give brain-lyest.

write a letter to your friend telling him or her about yhe cause as well as effects of social evils.​

Answers

There are many factors that cause problems in society, but the main ones are illiteracy and poverty. Effects of social evils can include destruction of economy. Awareness programs to those effected would be a good way to diminish social evils in society.

Wearing white robes and hoods ,a white supremacist student group stages a silent march on campus

Answers

The Answer is yes to the question that you didn't post but I found.

A school district adopts the following policy: “A student or faculty member may be suspended or expelled for any behavior, verbal or physical, that stigmatizes an individual on the basis of race, ethnicity, religion, national origin, sex, sexual orientation, creed, ancestry, age, marital status, handicap, or veteran status.” Decide whether the following actions violate the above policy. If they do, should the student or faculty member be punished?

Selective observations are chosen because they are not in accord with the preferences or beliefs of the observer.

a. True
b. False

Answers

Answer:

True

Explanation:

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