An investor is considering the two investments shown above. Which of the following statements about these investments is true?
Time: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Discount
Rate
Investment A: -$1.5 million $300,000 $300,000 $300,000 $500,000 $500,000 8%
Investment B: -$1.3 million $500,000 $400,000 $300,000 $200,000 $100,000 7%
A) The investor should take investment A since it has a greater net present value (NPV).
B) The investor should take investment A since it has a greater internal rate of return (IRR).
C) The investor should take investment B since it has a greater net present value (NPV).
D) Neither investment should be taken since they both have a negative net present value (NPV).
Answer: D
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Answer the following statement true (T) or false (F)
Infringement means a seller causes confusion about the origins of a product by improper use of a trademark
a. True b. False Indicate whether the statement is true or false
The ____ usually states the time by which a project scope must be completed in terms of the specific date agreed upon by the sponsor
a. Project schedule b. Project objective c. Task timetable d. Project scope
Au Courant Bakery is a new firm specializing in gluten free pastry products. In attempting to determine what the financial position of the firm should be, the financial manager obtained the following average data for the baking industry for 2014
All data is expressed as a percentage of sales. Fill in the dollar amounts on Au Courant's pro forma balance sheet assuming 2015 sales are $450,000. Au Courant Bakery Pro Forma Balance Sheet December 31, 2015 Cash, 2.22% Accounts payable, 6.67% Accounts receivable, 2.78% Long-term debt, 6.67% Inventory, 3% Total current assets ? Common equity, ? Fixed assets ? Total liabilities and equity, ? Total assets, 33%