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 AProject BCost 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 - See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.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:
A. $54,355
B. $90,355
C. $36,115
D. $76,115
Answer: A
You might also like to view...
When Sally sees an ad in a newspaper about a particular product, goes to the store, reviews the actual product offer in the store, rejects the product, and tells the salesperson why she did not buy the product, she is providing ________ in the
communications model established by the store. A) noise B) a message C) media forms D) feedback
Which of the following would be an irrelevant cost?
A) Future costs that differ among alternatives. B) Benefits foregone by choosing one alternative over another. C) Costs that have already been incurred. D) Costs that are avoidable.
Public relations uses publicity, such as news stories and mentions at public events, as a method for influencing the attitudes, opinions, and behaviors of customers.
Answer the following statement true (T) or false (F)
According to Section 9(C)(3) of the NLRA, after the conduct of a valid election in any bargaining unit, no new election can be held for a period of:
a. three months. b. six months. c. twelve-months. d. nine months.