Business Review Second Partial

Front

Calculate the Net Present Value (NPV) for Project A with cash inflows of $40,000, $50,000, and $60,000 over three years, an initial investment of $100,000, and a discount rate of 8%. Round to two decimal places. Write your answer as: "NPV = $XXXX.XX".

Back

NPV = $27,522.00

Front

Calculate the payback period in years and months. Format: "Payback = X years Y months".

Back

Payback = 2 years 2 months

Front

Calculate the payback period. Format: "Payback = X years Y months".

Back

Payback = 3 years 8 months

Front

Calculate the ARR as a percentage. Format: "ARR = XX.XX%"

Back

ARR = 15.00%.

Front

Calculate the ARR for a car rental company that invests $600,000 and earns $300,000 total profit over six years. Format: "ARR = XX.XX%".

Back

ARR = 8.33%.

Front

Calculate the budget variance and state if it is favorable or adverse. Format: "Variance = $XXXX ( (Favorable or Adverse))".

Back

Variance = -$1,500 (Adverse)

Front

Calculate the budget variance. Format: "Variance = $XXXX (Favorable or Adverse)".

Back

Variance = $8,000 (Favorable)

Front

Calculate the total Cost to Buy (CTB) and Cost to Make (CTM). Then, decide which option is better. Format: "CTB = $XXXX.XX" "CTM = $XXXX.XX" "Decision: Buy/Make"

Back

"CTB = $2,000.00" "CTM = $2,500.00" "Decision: Buy"

Front

Calculate the total Cost to Buy (CTB) and Cost to Make (CTM). Then, decide which option is better. Format: "CTB = $XXXX.XX" "CTM = $XXXX.XX" "Decision: Buy/Make"

Back

CTB = $20,000.00 CTM = $22,500.00 Decision: Buy