Evergreen Company has two investment opportunities. Both investments cost $5,000 and will provide the same total future cash inflows. The cash receipt schedule for each investment is given below: Investment I Investment IIPeriod 1 $1600? $4320? Period 2 1600? 2960? Period 3 2960? 2960? Period 4 5440? 1360? Total $11,600? $11,600? Select the correct statement.
A. Evergreen should choose Investment I because of the time value of money.
B. Time value of money techniques are not useful for comparing these investments.
C. Evergreen should be indifferent between the two investments because they provide the same total cash inflows.
D. Evergreen should choose Investment II because it generates more immediate cash inflows.
Answer: D
You might also like to view...
Considering the speaking situation includes all of the following EXCEPT
a. considering the location. b. considering the time. c. gauging audience size. d. understanding the audience’s mood.
Ballantine Products, Inc, reported an excess of warranty expense over warranty deductions of $72,000 for the year ended December 31 . 2014 . This temporary difference will reverse in equal amounts over the years 2015 to 2017 . The enacted tax rates are as follows: 2014 ............................ 40% 2015 ............................ 35% 2016 ............................ 30% 2017
............................ 25% The reporting for this temporary difference at December 31 . 2014, would be a a. deferred tax liability of $23,400. b. deferred tax asset of $23,400. c. current deferred tax liability of $7,200 and a noncurrent deferred tax liability of $16,200. d. current deferred tax asset of $7,200 and a noncurrent deferred tax asset of $16,200.
Aaron and Travis have been trained on Acme Global’s new sustainability efforts. However, they have been doing their jobs a certain way for 10 years and do not see any reason to change. Which challenge to teaching employees about sustainability issues does Acme Global seem to have encountered?
A. a lack of organizational resources B. limitations to what the organization can accomplish C. lack of knowledge and skills D. unwillingness to learn and commit to change actions
A ______ is a tool for analyzing processes that have high service content by specifying how the service will be provided.
a. value stream map (VSM) b. process simulation c. service blueprint d. process chart