Does this mean that A is the better investment opportunity

Assignment Help Managerial Accounting
Reference no: EM132880557

Question - Two investments opportunities have positive net present values. Investment A's net present value amounts to $40,000 while B's is only $30,000. Does this mean that A is the better investment opportunity? Why or why not?

Reference no: EM132880557

Questions Cloud

United states differs from health care in canada : Differs depending on where you live; therefore, the health care in the United States differs from the health care in Canada and Germany.
Determine the cost of goods available for sale : Determine the cost of goods available for sale. Assume that at the end of January, you had three mixers on hand at a cost of $595 each
Evaluate fundamental driving forces : Evaluate the fundamental driving forces that shape the organizational environment of the selected company.
What is the price of a European call option on the stock : The price of a European put option on a non-dividend-paying stock with a strike price of $100 is $5. What is the price of a European call option on the stock
Does this mean that A is the better investment opportunity : Investment A's net present value amounts to $40,000 while B's is only $30,000. Does this mean that A is the better investment opportunity
Creating social media plan : Create and share a social media plan using three social media platforms for a national brand such as an athletic shoe, automobile, or food product.
Role of information technology in health care : The Role of Information Technology in Health Care reading outlines a number of different forms of technology.
What the issuance of convertible bonds increased : At the issue date, the market price of one ordinary share is P3. What the issuance of convertible bonds increased the entity's equity
Individual values impact ethical decision-making : How do individual values impact ethical decision-making?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Compute the change in sales due to volume factor

The gross margin of Betty corporation for each of the years ended dec 31 2020 and 2021 were as follows: Compute the change in sales due to volume factor

  Determine the maximum income from operations possible

If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?

  Would this action by claude meyer be possible

Would this action by Claude Meyer be possible under international financial standards (IFRS) why or why not?

  What is the net present value for the investment

What is the net present value for the investment? Additional information for interest rate of 10 percent and four time periods,Disinvestment

  Should the company develop a new product

Should the company develop a new product or consolidate existing product? A company is considering whether to develop a new product or consolidate existing

  What the npv of the project is p for basiga company

What the NPV of the project is P? Expected annual savings in cash operating costs P18,000. PV of an ordinary annuity of 1 at 12% for 10 periods is 5.65

  How much would the company net operating income increase

How much would the company's net operating income increase if Minneapolis increased its sales by $75,000 per year? Assume no change in cost behavior patterns.

  Determine the average rate of return for a project

Determine the average rate of return for a project that is estimated to yield total income of $195,320 over four years, has a cost of $442,000

  What principle or techniques of management science should

Company EFG , What principle/ techniques of management science should he use to justify his loan purpose. Explain why and how.

  Determine the selling price per unit

Other costs: Fixed marketing and administrative cost - R200 000.00. Determine the selling price per unit if a net profit of R724 600 is desired

  Construct schedules for monthly budgeted cash receipts

Make schedules for monthly budgeted cash receipts & cash disbursements & the cash budget. During which month will John need to organise

  What the company will experience

Variable costs of $800,000, and fixed costs of $400,000. If a $4 drop in selling price will boost unit sales volume by 20%, the company will experience

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd