Nast Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the higher MIRR rather than the one with the higher NPV, how much value will be forgone? Note that under some conditions choosing projects on the basis of the MIRR will cause $0.00 value to be lost. WACC: 10.75% 0 1 2 3 4 CFS -$1,100 $375 $375 $375 $375 CFL -$2,200 $725 $725 $725 $725
A. $6.49
B. $9.40
C. $0.00
D. $7.66
E. $6.66
Answer: C
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If Colgate packages two tubes of toothpaste together to sell at a special price, it is an example of a:
A) cross-ruffing premium B) rebate C) bonus pack D) self-liquidating premium
Fizzzle Inc sold a piece of equipment during the period for $230,000 and recorded a gain of $45,000 on the sale. How should this gain be treated when preparing the operating activities section of the statement of cash flows using the indirect method?
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Brittney recently read that once-a-year performance appraisals are ineffective. In response, she is asking all her managers to begin providing monthly performance appraisals to all their employees. Each manager has 30 employees and balk at the idea of providing that many performance appraisals each month. What aspect of good performance appraisals does Brittney’s plan appear to be missing?
A. validity B. specificity C. acceptability D. feasibility
Singh Company sold 75 units @ $350 each on October 31, Year 2. The following information is also available: Beginning inventory25 units @ $175Feb. 2 purchase20 units @ $180June 15 purchase45 units @ $200Oct. 1 purchase30 units @ $220Required:a) Determine the amount of cost of goods sold using: 1) FIFO2) LIFO 3) Weighted Averageb) Determine the amount of ending inventory using: 1) FIFO 2) LIFO 3) Weighted Average
What will be an ideal response?