This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The purchase of additional physical facilities, such as additional property or a new factory, is an ... (Read 117 times)

fagboi

  • Hero Member
  • *****
  • Posts: 535
on: Jul 10, 2018
The purchase of additional physical facilities, such as additional property or a new factory, is an example of a capital expenditure.
 
  Indicate whether the statement is true or false

Question 2

Mr. Jackson has been awarded a bonus for his outstanding work. His employer offers him a choice of a lump-sum of 5,000 today, or an annuity of 1,250 a year for the next five years.
 
  Which option should Mr. Jackson choose if his opportunity cost is 9 percent?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

irishcancer18

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

PVA = (1,250/0.09 )  1-1/(1.09 )5 = 4,862.06
Mr. Jackson should choose a lump-sum of 5,000 today.


fagboi

  • Hero Member
  • *****
  • Posts: 535
Reply #2 on: Jul 10, 2018
Thank you :)


irishcancer18

  • Sr. Member
  • ****
  • Posts: 310
Reply #3 on: Jul 10, 2018
Happy to help you


« previous next »
 

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Physical and Perceptual Dimensions of Sound Waves Physical and Perceptual Dimensions of Sound Waves
On March 25, 1911, as scores of young factory girls leaped to their deaths from the eighth, ninth, a On March 25, 1911, as scores of young factory girls leaped to their deaths from the eighth, ninth, a
Inspecting a patient’s ear during a physical examination. Inspecting a patient’s ear during a physical examination.
Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading. Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading.
A TECH 2 scan tool is the factory scan tool used on General Motors vehicles. A TECH 2 scan tool is the factory scan tool used on General Motors vehicles.
The Brain and Alcohol As you consume more alcohol, additional areas of your brain are affected The Brain and Alcohol As you consume more alcohol, additional areas of your brain are affected
Video: How a Urinalysis is Performed

For a complete list of videos, visit our video library