Finance

A corporate manager decides to build a new store on a lot owned by the

A corporate manager decides to build a new store on a lot owned by the corporation that could be sold to a local developer for $250,000. The lot was purchased for $50,000 twenty years ago. When determining the value of the new store project, A) the opportunity cost of the lot is $250,000 and should […]

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Date: September 19th, 2020

To measure value, the concept of time value of money is used A) to de

To measure value, the concept of time value of money is used A) to determine the interest rate paid on corporate debt. B) to bring the future benefits and costs of a project, measured by its expected profits, back to the present. C) to ensure that expected future profits exceed current profits today. D) to […]

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Date: September 19th, 2020

A financial manager is evaluating a project which is expected to gener

A financial manager is evaluating a project which is expected to generate profits of $100,000 per year for the next 10 years. The project should be accepted if A) the cost of the project is less than $1,000,000. B) this project’s expected profits are higher than any other projects the corporation has available. C) the […]

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Date: September 19th, 2020