Business, 27.02.2020 20:48 Hrjohnson2004

X-treme Vitamin Company is considering two investments, both of which cost $18,000. The cash flows are as follows:

Year Project A Project B
1 $20,000 $18,000
2 8,000 7,000
3 7,000 12,000

a. Calculate the payback period for Project A and Project B.
b. Which of the two projects should be chosen based on the payback method?
c. Calculate the net present value for Project A and Project B. Assume a cost of capital of 8 percent.
d. Which of the two projects should be chosen based on the net present value method?
e. Should a firm normally have more confidence in the payback method or the net present value method?

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 19:20

What impact did the economic opportunities in pennsylvania and new york have on virginia? a. virginia planters started to migrate to new york. b. new yorkers began buying up cheap virginia real estate. c. virginians found themselves resorting increasingly to slavery. d. virginians loosened their slave laws to attract more migrants.

Answers: 2

Answer

Business, 22.06.2019 20:20

This activity is important because as a marketing manager, you must allocate resources to reach your target market. during the strategic marketing process, managers move through three important phases to determine how to optimally allocate resources: a planning phase, an implementation phase, and an evaluation phase. in this interactive exercise, you are asked to review various strategic marketing actions and determine where in the strategic marketing process the action would occur. the goal of this exercise is to demonstrate your understanding of the strategic marketing process and related marketing actions.

Answers: 2

Answer

Business, 22.06.2019 23:00

The quinoa seed is in high demand in wealthier countries such as the u.s. and japan. approximately 97% of all quinoa production comes from small farmers in bolivia and peru who farm at high elevations—8,000 feet or higher. the seed is considered highly nutritious. mostly grown and harvested in bolivia and peru, and sold to markets in other countries, the seed is now considered an important for these nations. the governments of bolivia and peru are hopeful that this product will increase the quality of life of their farmers.

Answers: 3

Answer

Business, 23.06.2019 02:30

Robert just found out that he is going to be unemployed within a month because his factory has invested in a robotic factory line and his skills are no longer needed. this means that robert is . the gdp within country d has begun to decline. as a result of decreased production, thomas lost his job designing cars. this means that thomas is . raquel has just been offered a job, but she has decided not to take it because she feels her skills merit better pay and a better position. this means that raquel is .

Answers: 1

Answer

You know the right answer?

X-treme Vitamin Company is considering two investments, both of which cost $18,000. The cash flows a...

Questions