Project A has a predicted payback period of 2.5 and Project B has a predicted payback period of 5. Based on this information we can conclude that Select one: A. more information should be gathered before deciding on which project, if either, is desirable. B. Project A is preferred to Project B. C. Project B provides twice the return of Project A. D. Project B is preferred to Project A, but it is not necessarily twice as profitable.

Answers

Answer 1
Answer:

Answer:

A. more information should be gathered before deciding on which project, if either, is desirable.

Explanation:

The lower Payback Period is not sufficient information to decide which project is more profitable. The payback period indicates when in the life of a project the initial investment principal cash flow is achieved.

But to decide about a certain project it is better to know the interest yield, it is also important to get the life of the project and other information.

For example:

a.- 250 investment 100 per year  payback in 2.5-year life 3 years

b.- 500 investment 100 per year payback in 5-year life 20 years

While A payback occurs before project B is better


Related Questions

Advantages of using the opportunity cost of capital as a discount rate are: a. it is easily understood by most investors. b. it permits direct comparison between projects of the same general risk category. c. it permits risk analysis to be incorporated into policy guidelines. d all of the above.
Tanner-UNF Corporation acquired as a long-term investment $330 million of 5.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Tanner-UNF paid $300.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $310.0 million. Required: 1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate. 3. At what amount will Tanner-UNF report its investment in the December 31, 2021, balance sheet? 4. Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $290.0 million. Prepare the journal entry to record the sale.
On January 1, 2020, the Carla Vista Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020. Sales units: First quarter 5,500; second quarter 6,600; third quarter 7,300. Ending raw materials inventory: 40% of the next quarter’s production requirements.Ending finished goods inventory: 25% of the next quarter’s expected sales units. Third-quarter production: 7,740 units. The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. 5 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $5 per pound. Prepare a production budget by quarters for the 6-month period ended June 30, 2020
Kaplan, Inc. produces flash drives for computers, which it sells for $27 each. The variable cost to make each flash drive is $13. During April, 700 drives were sold. Fixed costs for April were $2 per unit for a total of $1,400 for the month. How much is the monthly break-even level of sales in dollars for Kaplan?
Hitzu Co. sold a copier (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 5% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $146 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier. 1. How much warranty expense does the company report for this copier in Year 1?

Sheridan Company's prepaid insurance was $192000 at December 31, 2021 and $89600 at December 31, 2020. Insurance expense was $62000 for 2021 and $53300 for 2020. What amount of cash disbursements for insurance would be reported in Sheridan's 2021 net cash provided by operating activities presented on a direct basis

Answers

Answer:

$164,400

Explanation:

Calculation to determine What amount of cash disbursements for insurance would be reported in Sheridan's 2021 net cash provided by operating activities presented on a direct basis

Using this formula

Cash disbursements for insurance =2021 prepaid insurance +Insurance expense-BOY prepaid insurance

Let plug in the formula

Cash disbursements for insurance=$192,000+ $62,000-$89,600

Cash disbursements for insurance=$164,400

Therefore the amount of cash disbursements for insurance that would be reported in Sheridan's 2021 cash provided by operating activities presented on a direct basis is $164,400

bartleby Clayborn Corporation's net cash provided by operating activities was $118,800; its net income was $106,100; its income taxes were $46,900; its capital expenditures were $96,300; and its cash dividends were $30,200. Required: Determine the company's free cash flow. (Negative amounts should be indicated by a minus sign.)

Answers

Answer: -$7,700

Explanation:

The Free Cash Flow is the amount of after tax income that a company has that can go to both its shareholders and debt holders.

When using cash from operating activities, taxes have already been accounted for so it is calculated as:

= Net cash provided by operating activities - Capital expenditure - Cash Dividends

= 118,800 - 96,300 - 30,200

= -$7,700

The price of a stock is $64. A trader buys 1 put option contract on the stock with a strike price of $60 when the option price is $10. The trader makes a profit when the stock price is below _______________

Answers

Answer:

stock price is below $50

Explanation:

given data

price of a stock = $64

strike price =  $60

option price = $10

solution

we know here that stock sell for $60 and pay for $10

so that here price of stock is

stock price = $60 - $ 10

stock price = $50

and net profit will be

net profit = $10 - $10

net profit = 0

so that we can say stock price is less than $50 for trader for making profit 0 or greater than 0.

so price will be below than $50

Type the correct answer in the box. Spell all words correctly.Which process does a court use to select a jury?
The court selects a jury from a jury pool through a process known as _____.

Answers

voir dire
Lawyers and judges select juries by a process known as “voir dire,” which is Latin for “to speak the truth.” In voir dire, the judge and attorneys for both sides ask potential jurors questions to determine if they are competent and suitable to serve in the case.

Which of the following is an example of a middle manager?Teller at a bank
O Director of marketing
O Chief executive officer
O Salesperson in a retail store

Answers

The Director of marketing is an example of a middle manager. Thus, option B is correct.

Who is a manager?

A manager is a person who maintains the flow of the business, he is responsible for the smooth running of the business and coordinating between various departments. A manager tends to be the person who is delegating and is responsible for coordinating.

According to the hierarchical positions of the company, there are various positions that need to be filled like workers, staff, managers, executive managers, head of an office, CEO, etc.

From the given options, the middle manager will be the director of marketing the teller of the bank comes at a lower level, the chief executive officer will be at the top most level, and a salesperson will be at the lower middle level.  Therefore, option B is the correct option.

Learn more about managers, here:

brainly.com/question/17312484

#SPJ6

Answer:

Director of marketing

Explanation:

I just got it right in a test

What type of maintenance is repair and return to the user, which includes maintenance actions performed by operators and is often performed on or near the unserviceable piece of equipment or weapon system utilizing line replaceable units (FRUs) or modules and competent replacement or repair?

Answers

Answer:

The correct answer is: Field maintenance.

Explanation:

In the military, field maintenance involves the efforts of soldiers to repair, regenerate, and preserve equipment and weapons during the battlefield to ensure mission accomplishment. According to the Army Regulation (AR) 750-1, commanders are in charge of keeping equipment supplies and repairs according to what the manufacturers' guidelines request.