Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,000 and will produce cash flows as follows: End ofYearInvestment?AB1$8,000 $0 2 8,000 0 3 8,000 24,000 The present value factors of $1 each year at 15% are: 10.869620.756130.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is:
A. $780.
B. $9,000.
C. $(15,780).
D. $39,797.
E. $(5,918).
Answer: A
You might also like to view...
Superior Auto Sales, a chain of high-end used car dealerships, wants to sum up its company positioning and value proposition in a formal statement to serve as a guide for marketing communication development
Superior's management would use a ________. A) mission statement B) vision statement C) competitive statement D) brand position statement E) company statement
Global affirmative/positive action programs aim to:
a. Provide equal rights for every human being b. Provide social benefit to the global society c. Prohibit negative treatment and employment d. Provide advantages to groups that have traditionally been discriminated against
Discuss the various short-term needs for funds and the short-term sources for funds.
What will be an ideal response?
How does a judicial review of an administrative agency action provide a check against agency excesses?
What will be an ideal response?