Project Ell requires an initial investment of $50,000 and the produces annual cash flows of $30,000, $25,000, and $15,000. Project Ess requires an initial investment of $60,000 and then produces annual cash flows of $25,000 per year for the next ten years
The company ranks projects by their payback periods.
A) Projects with unequal lives cannot be ranked using the payback method.
B) Ess will be ranked higher than Ell.
C) Ell and Ess will be ranked equally.
D) Ell will be ranked higher than Ess.
Answer: D
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The balance sheet reports
a. the shortfall in cash at the beginning of the year. b. the balance in cash at the end of the year. c. how cash changed during the period. d. how a firm obtains and uses cash. e. both choices a and b.
OEM customers purchase in large quantities to support their own product demand.
Answer the following statement true (T) or false (F)
Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away. Sharon agrees to do so, provided she has the time for it. What kind of contract do Mary and Sharon have?
A) preexisting duty B) past consideration C) illegal consideration D) illusory promise
Sharing your ideas with your supervisor requires you to
a. arrange a time to talk with the supervisor. b. support your ideas with notes. c. close with a positive statement. d. all of these choices.