Answer:
C. Subsidized
Explanation:
According to the economic theory, subsidies could be used to counter market weaknesses and externalities so that greater economic performance is achieved. Subsidy refers to the release of funds from the government to an individual, business, or entity. This results in a decrease in the value of the subsidized product. This support could be either in the form of cash or kind and is usually given to support a social or economic policy. The purpose of the subsidy is to promote the interests of society. It is part of the government 's non-planned expenditure.
why did the chicken cross the road?
Answer:
Why?
Explanation:
Watters Umbrella Corp. issued 15-year bonds 2 years ago at a coupon rate of 8.2 percent. The bonds make semiannual payments. If these bonds currently sell for 85 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer: 10.32%
Explanation:
Given the following :
Assume par value of $1000
Payment is made semianually
Payment per period (PMT) = 85% of par value = [(8.2/100) × 1000] ÷ 2 = 82 / 2 = $41
Present value(PV) = 85% × 100 = $850
Years to maturity = (15 - 2) = 13 years
Therefore, number of periods = 13 × 2 = 26 ( since payment is made semianually).
In other to avoid computational complexity, we can use the online yield to maturity calculator or the excel formula :
Using the online calculator :
Yield to maturity = 10.32%
Andy, a contracting officer, is reviewing a Performance Based Payment (PBP) request from his contractor. The PBP event listed in the contract requires the contractor to complete the mock-up of a prototype unit for Government technical team review. The contractor has completed 99% of the mock-up, but ran into a delay with a 3rd tier subcontractor. The contractor informs Andy that the mock-up will be 99% complete at the time of the Government review. Based only on these facts, may Andy approve the PBP request at this time?
Answer: No. Andy must not approve the PBP request at this time because it is not 100% complete.
Explanation:
Performance-based payment is the transfer of money after a measurable action has been taken or a performance target that has been predetermined has been met.
In this scenario, we are told that the contractor has completed 99% of the mock-up, but ran into a delay with a 3rd tier subcontractor and that the contractor then inform Andy that the mock-up will be 99% complete at the time of the Government review. Dur to this, Andy should not approve this because the PBP event is not yet 100%. For payment to be approved, it must be 100%.
how do government regulators protect customers?
a. by investigating complaints made by lenders
b. by using borrower information responsibly
c. by disclosing accurate credit terms
d. by ensuring lenders comply with the law
Answer:
Disclosing accurate credit terms
Explanation:
One of the government regulations in protecting customers is by ensuring that accurate credit terms are disclosed to customers towards a credit transactions through and appropriate and timely information .
The is the aim of the introduction of the truth in lending acts (TILA) to promote an informed use of consumer credit so that consumers can compare credit terms more readily and knowledgeably and not misled in the course of making loan decision.
This further prohibit mortgage providers from unfair practices that could negatively impact the interest of the lenders .
Disclosing accurate credit terms
Explanation:
One of the government regulations in protecting customers is by ensuring that accurate credit terms are disclosed to customers towards a credit transactions through and appropriate and timely information .
The is the aim of the introduction of the truth in lending acts (TILA) to promote an informed use of consumer credit so that consumers can compare credit terms more readily and knowledgeably and not misled in the course of making loan decision.
This further prohibit mortgage providers from unfair practices that could negatively impact the interest of the lenders .
Thirsty Dog! Is a zesty beef-flavored, vitamin-enriched, mineral-loaded, lightly carbonated bottled water for your dog. It might have been a great product, but competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers. The makers of this product had
Womack Toy Company’s stock is currently trading at $25 per share. The stock’s dividend is projected to increase at a constant rate of 7 percent per year. The required rate of return on the stock, ks, is 10 percent. What is the expected price of the stock 4 years from today?
Answer: $32.77
Explanation:
Given the following :
Current price of stock = $25
Growth rate of Dividend per annum= 7%
Required return on stock = 10%
Period = 4 years
Expected price of stock after 4 years can be calculated using the relation :
Current price × ( 1 + growth rate)^period
Expected price = $25(1 + 7%)^4
Expected price :
$25 × ( 1+ 0.07)^4 = $25 × (1.07)^4
= $25 × 1.31079601
= $32.76990025 = $32.77
Which kind of protection does homeowners insurance offer? Check all that apply.
A. It protects a car against theft in the parking lot.
B. It covers damages to a home.
C. It protects a home against theft.
D. It protects against accidents or injuries.
E. It covers property lost outside of the home.
Answer:
2,3,4,5
Explanation:
Homeowner's insurance keeps the owner safe from house damages, theft, accidents or injuries or mishap, etc
What do you understand by homeowners insurance offer?
Property holder's insurance contracts frequently cover the inside and beyond a home, as well as the misfortune or robbery of individual possessions and individual risk for harm to other people.
The home insurance cover:
The actual cost of the house, replacement cost, and extended replacement cost/value. The feature of home insurance are:
It covers house damages It protects against theftagainst accidents or injuries or mishapproperty lost inside and beyond/outside the houseTherefore options B, C, D, and E aptly describe the homeowner's insurance.
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What are the advantages and disadvantages of the three primary business writing formats?
Answer and Explanation:
The business writing formats benefits and disadvantages of the three primary business writing formats are described below:-
A memorandum is a formal define that it is the way of communication that enables corporations to connect with their workers. This is typically used to distribute updates or issues.
Memos are highly increasingly being replaced by e-mail, so sending a memo is more difficult and costly. Therefore, a Business Letter is a structured communication method that's best used to connect with clients.
It generally takes more time to write and format a business letter than to write an email or memo.
As we know that an Email is easy to send and priceless, and make enable to send message to many people at a time also Many unwritten e-mails etiquette rules and can be too casual for many business purposes.
Business writing formats includes the use of memorandum, email business letters etc. The advantages and disadvantages of the three primary business writing formats are:
A Memorandum: (Advantages)
This is simply a formal, internal communication tool which allows companies to communicate with their employees. It is known to be used to deliver announcements or problems.Disadvantages
Memos are said to be rapidly been replaced by e-mail due to the fact that it is more complicated and expensive to deliver a memo.Business letters (Advantages)
A Business Letter is simply known as a formal communication tool which is utilized for communicating with customers.Disadvantages
Writing and formatting a business letter often takes more time than composing a memo or e-mail.Emails (Advantages)
E-mail is quick, easy and cheap, and allows you to send messages instantly to any number of people.Disadvantages
E-mail has too much unwritten rules to follow (etiquette) and it is too informal for many business purposes.Learn more from
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or placing trade restrictions on other countries to shield domestic industries from
competition, takes many forms.
are taxes imposed on imported goods and services.
place limits on the amount of a good that can be imported from a particular country.
Early in the twentieth century, the United States imposed
Y agricultural
goods. While this measure protected US farmers, it caused European governments to impose
tariffs
on US products. Heavy tariffs on imports led to a drastic decline in international trade, which further weakened the
global economy and aggravated the Depression.
Today, some US workers believe the government should
protectionism to protect their industries from
foreign competition and prevent job
in the United States. This thought is shared by
some business owners as well.
Answer: protectionism, tariffs, quotas, tariffs, European,
retaliatory, increase, cheaper, losses
Explanation: Plato / Edmentum
analyze nigeria national income from to 2015-2019
Answer:
yes
Explanation:
because
the team is struggling to agree on the story point sizing of a new user story. The PO was previously a related domain expert and feels the team is wasting time. What should he do?
Answer:
Continue to support the team's decision on sizing.
Explanation:
User story is usually written by a product owner and it is created to making sure that what the customer requires are well documented and clear to all the parties involved before rolling out the product.
The product team would usually deliberate upon the story presented by the product owner and come up with an agreed user story after point sizing and deliberation .
While the team is struggling coming to terms with an acceptable user story with regards to the above; the product owner who is a expert in domain expert and who feels the team is wasting time has no choice than to continue to support the team's decision on sizing because she is part of the team and moreover, product owners are more team oriented unlike product managers who are business oriented.
Tony, Juan, and Isabel live in a city where the combined state and local sales tax rate is 8%. They each purchased the same computer and paid $160 in sales tax. A 5-column table has 3 rows. The first column has entries Tony, Juan, Isabel. The second column is labeled Income with entries 10,000, 50,000, 75,000. The third column is labeled Cost of computer with entries 2,000, 2,000, 2,000. The fourth column is labeled Sales tax paid with entries 160, 160, 160. The fifth column is labeled tax rate with entries 1.6 percent, 0.32 percent, and 0.21 percent. This scenario describes a tax system. Isabel pays Tony and Juan on the computer. pays the highest tax rate on the computer. would be the most affected by an increase in the sales tax rate.
Answer:
Tony pays the highest tax rate on the computer, not based on the nominal sales tax rate, but on the percentage that the tax represents of his total income.
His income is $10,000, and he pays $160 in sales tax, for an effective rate of 1.6%.
The person who would be the most affected by an increase in the sales tax rate is again, Tony, simply because he has the lowest income. Juan and Isabel would also be affected by a sales tax increase, but on a much lower scale (because their incomes are also a lot larger).
a) The scenario described by the 5-column table with 3 rows showed that Tony paid the highest tax rate (effective) on the computer, based on his income level.
b) Tony would be the most affected by an increase in the sales tax rate because his effective tax rate would increase, causing him to suffer the most.
What is a sales tax?A sales tax is a proportional tax that charges the same percentage on the consumption of goods and services without considering a person's income level.
Data and Calculations:Tax Payer Income Cost of Computer Sales Tax Paid Tax Rate
Tony $10,000 $2,000 $160 1.6%
Juan 50,000 2,000 160 0.32%
Isabel 75,000 2,000 160 0.21% ($160/$75,000 x 100)
Thus, this scenario of a tax system illustrates that sales tax is not progressive, but it is proportional since it is based on consumption and not income level.
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Wrong Deck. Penny hires Jackson to paint the back deck on her house. She agrees to pay him $200 for the job and he accepts, sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then realized that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, he expects all of his funds from Penny. What was the status of the agreement between Jackson and Penny as of Tuesday when they agreed upon the price for the job?
Answer:
This was an executory contract because neither party has fulfilled their contract obligations (consideration). In other words, the contract has not been fulfilled yet, and both parties are still responsible for performing their contract obligations.
Even after Jackson mistakenly painted the neighbor's deck, the contract remains as executory since neither party has performed their obligations.
If the exchange rate between the u.s. dollar and the Canadian dollar is 1:1.3, which of the following is true
Answer:
It will cost less to buy a $5 item in Canada than it will in the United States
Explanation:
if the exchange rate between the US Dollar and the canadian dollar is 1:1.3, then that menas that it would be easier to buy a commodity of $5 in canada as against buying in the US. This is because the price of the commodities will be affected by the exchange rate thus price making room for a 0.13
Cheers
mention 5 functions of distribution channels
Answer:
movement of goods
information provider
negotiation
financing
risk taking
Explanation:
a distribution channel is a chain of businesses through which a good or service passes until it reaches to the final consumer. hope it helps
Movement of goods, information provider, negotiation, financing and risk taking are the five functions of distribution channels.
What is distribution channels?A product or service could travel down a distribution channel to reach the market. A direct distribution channel is defined. A corporation can sell to customers directly through a direct distribution channel, which is typically a website or physical store.
Wholesalers, retailers, distributors, and the Internet are examples of distribution channels. The manufacturer sells directly to the customer through a direct distribution channel. Before the product reaches the customer, indirect routes use a number of middlemen.
Channels of distribution are crucial to organizations because they enable efficient delivery of products or services to clients. Unhappy customers and a subpar service may result from a firm failing to find the best group of businesses for this reason.
Thus, Movement of goods, information provider, negotiation, financing and risk taking.
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An investment offers to double your money in 30 months (don’t believe it). What rate per six months are you being offered? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Rate %
Answer:
9.05%
Explanation:
The formula that would be used to fund the interest rate =
[(FV / PV)^1/N ] - 1
FV / PV = Future value/ present value = 2 (The investment offers to double the investment)
M = 5 (30 months / 6 months )
(2 ^1/8) - 1 = 0.090508 = 9.05%
I hope my answer helps you
Match the given situations to the risks faced by the business. economic risks, natural disasters, right product, operations risk, due to inefficiency of management, the business plan has failed, the finance team has misjudged the requirement of the business plan and chosen a wrong line of credit, flash floods have damaged all machinery in the main manufacturing unit, and there have been foreign exchange rate fluctuations.
Answer:
Economic risks - there have been foreign exchange rate fluctuations.
Foreign exchange rate fluctuations are an economic risk, and they can represent a significant risk for many companies, for example, for companies that import or export goods.
Natural disasters - flash floods have damaged all machinery in the main manufacturing unit
Flash floods occur when a lot of rain falls in a very short period of time. They are a type of natural disaster.
Right product risk - the finance team has misjudged the requirement of the business plan and chosen a wrong line of credit
In this case, the company experienced the risk of choosing the right product or not, with the adverse effect that it did not choose it.
Operations risk - the business plan has failed
The goal of a business operation is to carry out the business plan, if the daily operations of the business fail to fulfill the business plan, then, the company has incurred in operations risk.
Portionpac co-founder, marvin klein, says ethics and integrity are "common sense." klein's moral values and attitudes, which still guide the company today, relate to which set of factors in the ethical decision-making process?
The correct answer to this open question is the following.
Although the question does not provide any options, we can say that the set of factors in the ethical decision-making process are individual, collective, and social.
Ethics and integrity should be "common sense." Moral values and attitudes are so important as key behaviors by the members of the organization. If employees are not guided by these concepts, the risk is that they could deviate from the guidelines and performance expected by the management.
The leader of the company and top management are the ones who have to set the example in order for the workers to follow those steps. The leader has to set an example of the conduct expected in the organization.
The Cash account of Gate City Security Systems reported a balance of 2400 at December 31, 2018. There were outstanding checks totaling 1300 and a December 31 deposit in transit of 400. The bank statement, which came from Tri Cities Bank, listed the December 31 balance of 3810. Included in the bank balance was a collection of 520 on account from Carol Lajoy, a Gate City customer who pays the bank directly. The bank statement also shows a 30 service charge and 20 of interest revenue that Gate City earned on its bank balance. Prepare Gate City's bank reconciliation at December 31.
Answer:
Explanation:
gate City bank reconciliation statement as at December 31, 2018
Balance as per cash book 2400
Direct payment to the bank (loan) 520
Less bank charges (30)
Add bank interest 20
Adjustment 510
Adjusted cash book balance 2910
Balance as per bank statement 3,810
Less outstanding check (1300)
Add deposit in transit 400
Adjustment (900)
Adjusted bank statement balance 2,910
Unlimited wants + limited resources = what is the answer?
Answer:
People never get enough of what they want or need
Explanation:
Unlimited wants and needs are one half of the basic troubles of scarcity that has troubled humanity since the beginning of time. The other half of the scarcity problem is limited resources. The reason why we always want something is because our brains are actually made to be attracted to novelty. So, we always seek ti learn new things and experiences.
(I hope this was accurate and helpful)
Julie Martin bought stock for $3,000, using $2,000 of her own money and $1,000 borrowed from the broker. One month later, the stock is sold for $3,850. Interest owed to the broker is $15; brokerage commissions to buy and sell the stock totaled $150. Rates of return: %
Answer:
The Rates of return = 22.83%
Explanation:
The stock that is bought by Julie Martin = $3000
Own money used to buy = $2000
Borrowed money =$1000
Interest on borrowed money = $15
Brokerage commissions = $150
The stock is sold after one month = $3850
Now first calculate the net profit = Selling price of stock – cost price of stock – Interest on borrowing – commission
= 3850 – 3000 – 15 – 150
= 685
Now calculate the rate of return = Net profit / cost of stock
= 685 / 3000
= 0.2283 or 22.83 percent.
Answer:
21.64%
Explanation:
First you would want to take the total cost of buying the stock and add it up.
1000+2000+15+150=3165
After this you would take the price at which it was sold ($3850) and subtract 3165 from it.
3850-3165=685
$685 is the total profit.
Finally you would take the total profit and divide it by the total cost.
685/3165=0.2164297
This gives you the final Rates of Return of 21.64%
Scenario: Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $270,000 in fixed costs currently spent. In addition, Mary is proposing a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary's ideas but concerned about the effects these changes will have on the break-even point and the margin of safety. Compute the margin of safety ratio for current operations and after Mary's changes are introduced (Round to nearest full percent)
Answer:
Instructions are below.
Explanation:
Giving the following information:
Before:
Fixed costs= 270,000
Selling price= $40
Unitary variable cost= $24
Sales in units= 20,000
After:
Fixed costs= 294,000
Selling price= $38
Unitary variable cost= $24
Sales in units= 24,000
First, we need to calculate the break-even point in units:
Break-even point in units= fixed costs/ contribution margin per unit
Before:
Break-even point in units= 270,000/ (40 - 24)
Break-even point in units= 16,875 units
After:
Break-even point in units= 294,000/14
Break-even point in units= 21,000 units
Now, the margin of safety ratio:
Margin of safety ratio= (current sales level - break-even point)/current sales level
Before:
Margin of safety ratio= (20,000 - 16,875)/20,000
Margin of safety ratio= 0.156
After:
Margin of safety ratio= 3,000/24,000
Margin of safety ratio= 0.125
Determine whether the markets, businesses, or products listed below belong in a competitive market, a monopoly, or a monopolistically competitive market. (a) American Eagle (b) Burger King (c) Merck's cholesterol-fighting drug (d) your local electric company (d) the stock market (e) a farmer who grows corn
Answer:
(a) American Eagle is a monopolistically competitive market (b) Burger king is a monopolistically competitive market (c)Merck's cholesterol-fighting drug is a monopoly market (d)your local electric company is a monopoly market. (e) a farmer who grows corn is a competitive market
Explanation:
Solution
American Eagle : It is Monopolistic Competitive. There are many firms which is of one of the number of clothing and accessories retailers in the market where no business have total control over market.
Burger king:This is a monopolistic competitive market as there are many producers who sell same product but they are differentiated by branding.
Merck's cholesterol fighting drug: This is a monopoly market as there is one firm that produce this drug .
Local electric company: It is a monopoly market as it is owned by a local loop where it is the only source for the particular locality
The stock market: It is a competitive market as there are large number of producers who want to earn profits .Here the market prices varies depending on competition .
A farmer who grows corn: It is a competitive market because there are so many people who grows corn and sell in the market.Here the market prices varies depending on competition
The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $576,000. If these calculators are upgraded at a total cost of $170,000, they can be sold for a total of $230,000. As an alternative, the calculators can be sold in their present condition for $40,000. What is the financial advantage (disadvantage) to the company from upgrading the calculators?
Answer:
$20,000
Explanation:
Given :
Total cost of inventory= $576,000
Upgraded cost of calculator =$170,000
Sold cost of calculator =$230,000
Present sales cost = $40,000.
The incremental revenue of the calculator of sales can be determined by
[tex]= Sold\ cost\ of\ calculator\ -\ Upgraded\ cost\ of\ calculator\[/tex]
=$230,000 - $170,000
=$60,000
Therefore financial advantage to the company from upgrading to the calculators can be determined
[tex]$\ 60,000- $40,000\\[/tex]
=$20,000
Mr. X and Y are having a discussion. Mr. X felt that business is based on selfish desires to gain higher and higher profits while Mr. Y felt that profit is essential for business. Can you support Mr. Y's case by providing strong points for his favour.
Answer: Ensure running cost is maintained to sustain business.
Explanation:
Resources to drive the business; probably the capital to start the business ain't much to cover for the production of more products or to cover for other expenses, here there would be a valid point for an increase in finances in some areas which won't be based on greed or selfishness. The running cost of a business matters, so the business doesn't crumble or there isn't enough return on investment.
Scenario 1
Aiden's car is 12 years old and he's worried it might break down, so he's trying
to save three months of expenses for unexpected repairs, while also saving for
a new car. What are the best savings strategies for Aiden so he can keep his
money accessible for repairs, but also save for a new car?
Answer:
Aiden can open a savings account that does not have restriction on withdrawals and does not have minimum balance requirement
Explanation:
Aiden is trying
to save three months of expenses for unexpected repairs, while also saving for
a new car.
This will require frequent withdrawals for unexpected repairs on his old car. Also he will need to make frequent deposits into the account as he is saving for a new car.
The best account option for Aiden will be to get a savings account that will allow him withdraw as much as possible for repairs and also he will not be charged because of frequency of withdrawals
discuss wether trade unions always have a harmful effect on the wider economy
Answer:
1 could lead to disruption of economy
2 could lead to firm going out of business
3 it cause an increase in unemployment
4 output damage reputation of a country
5 can lead to higher wages
Drag the tiles to the correct boxes to complete the pairs. Match each law with its benefit for consumers. Economic Growth and Regulatory Paperwork Reduction Act Fair Credit Reporting Act Federal Deposit Insurance Act Children's Online Privacy Act Consumer disputes financial information reported to a credit scoring company. arrowRight Consumer has less paperwork to go through to buy a new house. arrowRight Consumer refuses to provide their five-year-old child's financial data to a company. arrowRight The FDIC has the right to review companies for consumers. arrowRight
Answer:
1. Economic Growth and Regulatory Paperwork Reduction Act - Consumer has less paperwork to go through to buy a new house
The Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA) is a law that requires that the regulatory bodies of Federal Deposit Insured Corporation insured institutions such as banks and savings organisations review the documents they require from said banks to see if there are any unnecessary requirements needed. This will translate to fewer paperwork for the customers of such banks who for instance seek a mortgage to buy a house.
2. Fair Credit Reporting Act - Consumer disputes financial information reported to a credit scoring company
The Fair Credit Reporting Act (FCRA) gives consumers the right to dispute the information reported to a credit scoring company. It also regulates how these companies are allowed to collect and share the acquired data.
3. Federal Deposit Insurance Act - The FDIC has the right to review companies for consumers
4. Children's Online Privacy Act - Consumer refuses to provide their five-year-old child's financial data to a company.
The Children's Online Privacy Protection Act was passed in 1998 as a means to allow parents to determine what information about their children that websites can collect. Children in this case refers to people under the age of 13.
Concrete terms can never be used in an abstract or symbolic way.
Please select the best answer from the choices provided
Answer:
The statement is FALSE.
Explanation:
Concrete terms are referred to those objects and events that are available to the five senses of human. However, these terms can be used in an abstract or symbolic way. A word is concrete in a specific context, but becomes a symbol of an abstract idea in a different context depending on the author's intent. This is possible because that symbol is not used in a literal meaning, but is used to represent an idea which usually means something else. Henche the given statement is wrong.
Answer:
False
Explanation:
I just took the test
Net Present Value Analysis Anderson Company must evaluate two capital expenditure proposals. Anderson’s hurdle rate is 12%. Data for the two proposals follow. Proposal X Proposal Y Required investment $120,000 $120,000 Annual after-tax cash inflows 24,000 After-tax cash inflows at the end of years 3, 6, 9, and 12 72,000 Life of project 12 years 12 years Using net present value analysis, which proposal is the more attractive? Do not use negative signs with your answers. Round PV answers to the nearest whole number. Use rounded answers for subsequent calculation of net present value. Proposal X Proposal Y Net present value Initial outflows Answer Answer PV of future cash flows Answer Answer Net present value Answer Answer Which proposal is more attractive?
Answer:
Initial outflows for project X and Y is $120,000
PV for project X = $148,664.98
NPV For project X = $28,664.98
NPV for project Y = $12,170.15
PV for project Y = $132,170.15
Project X is more attractive
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested .
NPV can be calculated using a financial calculator:
NPV for proposal X :
Cash flow in year 0 = $-120,000
Cash flow each year from year one to 12 = $24,000
I = 12%
NPV = $28,664.98
PV = $-120,000 + 28,664.98 = $148,664.98
NPV for proposal Y :
Cash flow in year 0 = $-120,000
Cash flow in year 3, 6, 9, and 12 = $72,000
I = 12%
NPV = $12,170.15
PV = $120,000 + $12,170.15 = $132,170.15
The project X should be chosen because its NPV is greater than that of project Y.
