Your company is considering an investment in one of two mutually exclusive projects. Project 1
involves a labor intensive production process. Initial outlay for Project 1 is $1,495 with expected
after-tax cash flows of $500 per year in years 1-5.
Project 2 involves a capital intensive process,
requiring an initial outlay of $6,704. After-tax cash flows for Project 2 are expected to be $2,000 per
year for years 1-5. Your firm's discount rate is 10%. If your company is not subject to capital
rationing, which project(s) should you take on?
A) Project 2 B) Project 1
C) Projects 1 and 2 D) Neither project is acceptable.
A
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Your extemporaneous outline is also called your ______.
Fill in the blank(s) with the appropriate word(s).
A supplier creates better information systems, and introduces barcoding, mixed pallets, and other methods of helping the consumer. The supplier is most likely to be differentiated on its ________
A) innovativeness B) reliability C) insensitivity D) resilience E) accuracy
U.S. GAAP and IFRS require firms to account for debt securities held-to-maturity that are deemed to be impaired. The investor recognizes (debits) _____ and reduces (credits) _____
a. an impairment loss (included in other comprehensive income); the balance sheet carrying value of the investment b. the balance sheet carrying value of the investment; an impairment loss (included in other comprehensive income) c. the balance sheet carrying value of the investment; an impairment loss (included in net income) d. an impairment loss (included in net income); the balance sheet carrying value of the investment e. reserve for impairment loss (included in other comprehensive income); the balance sheet reserve for net realizable value of investments
Which of the following factors should influence the format that a report takes?
A. audience B. legality C. direct order D. indirect order