Business, 24.03.2021 22:50, ronniethefun
Use Present Worth Analysis to determine whether Alternative A or B should be chosen. Items are identically replaced at the end of their useful lives. Assume an interest rate of 6% per year, compounded annually.
Alternative A Alternative B
Initial Cost 350 985
Annual Benefit 80 226
Salvage Value 160 186
Useful Life (yrs) 2 3
A. Alternative B, because it only incurs the initial cost once every three years instead of every two years
B. Alternative B, because it costs $250.00 more than Alternative A, in terms of present worth
C. Alternative A, because its present worth is positive
D. Alternative A, because it costs $250.00 less than Alternative B, in terms of present worth
Answers: 2
Business, 21.06.2019 20:30, 7841784
Which of the following mechanisms would be most likely to motivate managers to act in the best interests of shareholders? a) decrease the use of restrictive covenants in bond agreements, b) take actions that reduce the possibility of a hostile takeover, c) elect a board of directors that allows managers greater freedom of action, d) increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries, e) eliminate a requirement that members of the board directors have a substantial investment in the firm's stocks
Answers: 2
Business, 22.06.2019 10:50, Nicki3729
The uptowner just paid an annual dividend of $4.12. the company has a policy of increasing the dividend by 2.5 percent annually. you would like to purchase shares of stock in this firm but realize that you will not have the funds to do so for another four years. if you require a rate of return of 16.7 percent, how much will you be willing to pay per share when you can afford to make this investment?
Answers: 3
Use Present Worth Analysis to determine whether Alternative A or B should be chosen. Items are ident...
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