Stellan Manufacturing is considering the following two investment proposals:
Proposal X
Proposal Y
Investment
$730,000
$504,000
Useful life
5 years
4 years
Estimated annual net cash inflows received at the end of each year
$156,000
$100,000
Residual value
$50,000
$0
Depreciation method
Straightminus
line
Straightminus
line
Annual discount rate
10%
9%
Compute the present value of the future cash inflows from Proposal Y.
Present value of an ordinary annuity of $1:
8%
9%
10%
1
0.926
0.917
0.909
2
1.783
1.759
1.736
3
2.577
2.531
2.487
4
3.312
3.240
3.170
5
3.993
3.809
3.791
6
4.623
4.486
4.355
A.
$252,000
B.
$292,320
C.
$268,884
D.
$324,000
Answers: 3
Business, 22.06.2019 00:00
Which statement about the cost of the options is true? she would save $1,000 by choosing option b. she would save $5,650 by choosing option a. she would save $11,200 by choosing option b. she would save $11,300 by choosing option a.
Answers: 2
Business, 22.06.2019 12:50
There is a small, family-owned store that sells food and household goods in a small town. the owners have good relations with the community, especially with local farmers who supply much of the food. the farmers aren't organized into a cooperative or union, and the store deals with each individually. suppose the store wanted to buy some farms to control the supply of certain vegetables. how would you classify this strategic move? select one: a. horizontal integration b. forward integration c. backward integration d. concentric integration
Answers: 2
Business, 23.06.2019 01:30
What happens when the government finances a job creation project through taxes and borrowing?
Answers: 3
Stellan Manufacturing is considering the following two investment proposals:
Proposal X
Mathematics, 15.07.2020 01:01
Mathematics, 15.07.2020 01:01
Mathematics, 15.07.2020 01:01
Mathematics, 15.07.2020 01:01
Mathematics, 15.07.2020 01:01
Mathematics, 15.07.2020 01:01
Mathematics, 15.07.2020 01:01
Mathematics, 15.07.2020 01:01
Mathematics, 15.07.2020 01:01
English, 15.07.2020 01:01
Mathematics, 15.07.2020 01:01
Mathematics, 15.07.2020 01:01
Mathematics, 15.07.2020 01:01