Consider the following projects, X and Y, where the firm can only choose one. Project X costs $600 and has cash flows of $400 in each of the next 2 years
Project Y also costs $600, and generates cash flows of $500 and $275 for the next 2 years, respectively. Which investment should the firm choose if the cost of capital is 10 percent?
A) Project X, since it has a higher NPV than Project Y
B) Project Y, since it has a higher NPV than Project X
C) Project X, since it has a lower NPV than Project Y
D) Project Y, since it has a lower NPV than Project X
A
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Payment of a dividend decreases both cash and stockholders' equity of the distributing business
a. True b. False Indicate whether the statement is true or false
Skincare company E&OE retails its products through standalone stores or through its own stores within malls. The management uses this method so that customers are sure of finding only E&OE products at the stores and the brand image remains strong
In this scenario, what can E&OE do to generate consumer interest while retaining its exclusivity?
The Lucas Company offers employees a defined contribution pension plan. In 2015, Lucas contributed $175,000 to the plan, which paid $195,000 to retired employees. Which of the following statements is true?
A) Lucas will record an accrued liability of $20,000. B) Lucas will report pension expense of $175,000. C) Lucas will recognize prior service cost of $20,000. D) Lucas will recognize actuarial gains and losses on the plan over current and future periods.
The VALS system seeks to explain why and how consumers make purchase decisions. Consumers motivated by ideals are guided by knowledge and principle. Explain the difference between Thinkers and Believers.
What will be an ideal response?