Business, 20.09.2020 16:01 zaymuney3063

Here are the expected cash flows for three projects: Cash Flows (dollars)
Project Year: 0 1 2 3 4
A − 5,900 + 1,225 + 1,225 + 3,450 0
B − 1,900 0 + 1,900 + 2,450 + 3,450
C − 5,900 + 1,225 + 1,225 + 3,450 + 5,450
a. What is the payback period on each of the projects?
Project Payback period
A years
B years
C years
b. If you use a cutoff period of 2 years, which projects would you accept?
Project A
Project B
Project C
Project A and Project B
Project B and Project C
Project A and Project C
Projects A, B, and C
None
c. If you use a cutoff period of 3 years, which projects would you accept?
Project A
Project B
Project C
Project A and Project B
Project B and Project C
Project A and Project C
Projects A, B, and C
None
d-1.
If the opportunity cost of capital is 11%, calculate the NPV for projects A, B, and C. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)
Project NPV
A $
B $
C $
d-2. Which projects have positive NPVs?
Project A
Project B
Project C
Project A and Project B
Project B and Project C
Project A and Project C
Projects A, B, and C
None

Answers: 2

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Answers

Answer from: lavardamon123

Explanation:

Here are the expected cash flows for three projects:

Cash Flows (dollars)

Project Year: 0 1 2 3 4

A − 5,900 + 1,225 + 1,225 + 3,450 0

B − 1,900 0 + 1,900 + 2,450 + 3,450

C − 5,900 + 1,225 + 1,225 + 3,450 + 5,450

a. What is the payback period on each of the projects?

Project Payback period

A years

B years

C years

b. If you use a cutoff period of 2 years, which projects would you accept?

Project A

Project B

Project C

Project A and Project B

Project B and Project C

Project A and Project C

Projects A, B, and C

None

c. If you use a cutoff period of 3 years, which projects would you accept?

Project A

Project B

Project C

Project A and Project B

Project B and Project C

Project A and Project C

Projects A, B, and C

None

d-1.

If the opportunity cost of capital is 11%, calculate the NPV for projects A, B, and C. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Project NPV

A $

B $

C $

d-2. Which projects have positive NPVs?

Project A

Project B

Project C

Project A and Project B

Project B and Project C

Project A and Project C

Projects A, B, and C

None

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

Answer from: Quest

answer social mobility;

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Here are the expected cash flows for three projects: Cash Flows (dollars)
Project Year: 0 1 2...

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