Two projects being considered are mutually exclusive and have the following projected cash flows:
Year Project A Project B
0 -$50,000 -$50,000
1 $15,625 0
2 $15,625 0
3 $15,625 0
4 $15,625 0
5 $15,625 $99,500
If the required rate of return on these projects is 10%, which would be chosen and why?
A) B, because of higher NPV.
B) B, because of higher IRR.
C) A, because of higher NPV.
D) A, because of higher IRR.
E) Neither, because both have IRRs less than the cost of capital.
A
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Assume an organization has total current assets of $300,000; total current liabilities of $75,000; inventories of $150,000; prepaid expenses of $25,000; net sales of $800,000; and beginning accounts receivable of $100,000 and ending accounts receivable of $74,000 . What is the current ratio for this organization?
a. 17.9 b. 3.0 c. $225,000 d. 4.0
Which sentence expresses numbers correctly?
A) You may contact me at (404 )-394-1228, Ext 34. B) You may contact me at 404/394-1228 Ext 34. C) You may contact me at (404 ) 394-1228, Ext. 34.