What is the best reason for decision

Assignment Help Basic Statistics
Reference no: EM131954621

Projects A and B are mutually exclusive. The required return on each project is 11 percent. Which project should you accept and what is the best reason for that decision?

Project A Project B

Year 0 -$15,000 -$15,000

Year 1 $9,000 $3,000

Year 2 $8,000 $5,000

Year 3 $5,000 $9,000

Year 4 $4,000 $11,000

A.Project A; because it has the higher net present value

B.Project B; because it has the higher profitability index

C.Project A; because it has the higher profitability index

D.Project A; because it pays back faster

Reference no: EM131954621

Questions Cloud

How can you address these issues on a micro and macro level : Forms of oppression can come together often in almost imperceptible ways to form the complex environment in which you and your clients live and interact.
What is the after-tax cost of capital for droz : What is the after-tax cost of capital for Droz's, if it is subject to a 35 % marginal tax rate?
What price should be charged : If the company marks up total cost by 0.40, what price should be charged if 68,000 units are expected to be sold?
Describe the stereotypes associated with your desired career : Do you know anyone who fits the stereotype? Do you know someone who does not fit the stereotype?
What is the best reason for decision : The required return on each project is 11 percent. Which project should you accept and what is the best reason for that decision?
What is the degree of operating leverage of modern : What is the degree of operating leverage of Modern Artifacts when sales are $5,250?
Benefit of the remodeling project to corporation x : The discount rate is 13 percent. What is the benefit of the remodeling project to Corporation X?
Write a current event report about talliford company : Write a Current Event Report about Talliford Company. The members of the executive board were split on this decision and were concerned about many factors.
What is the price of the stock today : If the investor's required rate of return from this stock is 11 percent, what is the price of the stock today?

Reviews

Write a Review

Basic Statistics Questions & Answers

  Estimate the average time spent on computer terminals

Sample of 81 business students over a one-week period. Assume the population standard deviation is 1.8 hours. with a ,95 probability, the margin of error is approximately.

  Expenditure follows a normal distribution

At a local supermarket the monthly customer expenditure follows a normal distribution with a mean of $495 and a standard deviation of $121.

  Mean and margin of error

In a random sample of 26 people, the mean number of books they had read in the past year was 14.93 books and the standard deviation was 16.60 books.

  Stallman founded the free software foundation

When Richard Stallman founded the Free Software Foundation in 1985, he was able to tap into the energy of many programmers around the world who wanted to work on a free operating system.

  Flaws occur in mylar material according to a poisson

flaws occur in mylar material according to a poisson distribution with a mean of 0.05 flaw per square yard. round your

  Model to predict the selling price

Use the model to predict the selling price of a house that is 1,860 square feet.

  Determine that there is not a high amount of irregularities

Main objective of this project is to do an analysis of a real life example. We must use all the skills we gotto do a good job. It's important to analyze thoroughly all the data, in order to achieve the best conclusion for making your client happy.

  How large is the sample space

A bin contains six parts. Two of the parts are defective and four are acceptable. If three of the six parts are selected from the bin.

  Major league baseball mlb uses a best of 7 series to

major league baseball mlb uses a best of 7 series to determine the winner for the finals the winner must win 4 games.

  Probability group of four smokers using gum quits smoking

If 60 percent of those people chewing the gum are successful in stopping smoking, what is the probability that in a group of four smokers using the gum at least one quits smoking?

  Question on probability based on z score

A normal distribution has a mean of 80 and a standard deviation of 14. Determine the value above which 80 percent of the values will occur.

  Effects of cold and warm temperatures on springback

The accompanying data was extracted from the article "Effects of Cold and Warm Temperatures on Springback of Aluminum-Magnesium Alloy 5083- H111" (J. of Engr. Manuf., 2009: 427-431). The response variable is yield strength (MPa), and the predicto..

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