what is electric home and farm authority?

Answers

Answer 1

Answer: The Electric Home and Farm Authority (EHFA) is a nonprofit organization that provides energy efficiency and renewable energy solutions to rural and low-income households. The organization works with local governments, utilities, and other organizations to provide energy efficiency and renewable energy services to rural and low-income households. EHFA also provides education and outreach to help rural and low-income households understand and take advantage of energy efficiency and renewable energy opportunities.

Explanation:

Answer 2
Final answer:

Electric Home and Farm Authority refers to a government program in the United States that aimed to provide electricity to rural areas during the New Deal.

Explanation:

An Electric Home and Farm Authority refers to a government program implemented during the New Deal in the 1930s. It aimed to bring electricity to rural areas in the United States that lacked access to it.

The program provided low-interest loans to cooperatives or private companies to build power plants and distribute electricity to rural communities. This initiative helped improve the quality of life in rural areas and contributed to the economic development of those regions.

Some examples of Electric Home and Farm Authorities include the Tennessee Valley Authority (TVA) and the Rural Electrification Administration (REA).

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Related Questions

Mr X offers Mango for sale to Y at a price of Tk8500 per ton. Initially, Mr. Y accepts X’s offer. But with certain changes in the market situation Mr.Y wants to revocation of the offer and acceptance. Explain how Mr. Y revoked this offer

Answers

Mr. Y can revoke an offer by communicating to Mr. X that he no longer wishes to proceed with the sale of mangoes at the agreed-upon price of Tk8500 per ton, which can be done in person, over the phone, or in writing.

What is the definition of revoking an offer?

Revocation of an offer occurs when the offeror withdraws the offer before the offeree accepts it. Thus, even if the offeror has already promised to keep the offer open, he can revoke it. The only time this will not occur is if the offeror received compensation to keep the offer open.

It should be noted that an offer can only be withdrawn before it has been accepted. Once an acceptance is communicated, the offer is considered binding and cannot be withdrawn. As a result, it is critical that Mr. Y communicates his rejection of the offer before Mr. X accepts it.

It is also worth noting that even if an offer has not yet been accepted, it can be terminated or become void in certain circumstances. For example, if the offer specifies a time limit for acceptance that expires, the offer is no longer valid. Similarly, if the offer's subject matter is destroyed or becomes unavailable, the offer may be terminated.

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analyze transaction using t-account:
She invested cash of P500,000 and Furniture
and Fixtures of P175,000.

Answers

Effects of transactions:

Dr. Pajanustan invested cash and furniture and fixtures to start the consultancy firm.

The firm purchased a computer, office supplies, accounting software, and equipment, incurring both cash payments and credit.

The firm provided tax services and seminars, earning cash.

The firm paid for staff salaries, rent, utilities, and personal withdrawals by the owner.

The firm made payments on credit purchases and received payments from clients on credit.

The firm incurred expenses for supplies and returned defective furniture.

Copy clear format:

The transaction details are provided in a clear and organized manner.

T-Account:

T-accounts are a visual representation of individual account balances, showing debit and credit entries.

For example, the account for Cash would have debit entries for payments made and credit entries for cash received, resulting in a final cash balance.

Similarly, accounts for accounts payable, accounts receivable, and owner's equity would reflect the changes in their balances due to the transactions.

Journal Entries:

Journal entries are the recording of the transactions in a company's books of accounts, typically in a general journal.

Each transaction would be recorded as a debit to one account and a credit to one or more accounts, depending on the nature of the transaction.

Posting to the Ledger:

Posting to the ledger is the process of transferring the journal entries to the individual accounts in the ledger.

The ledger is where all the account balances are recorded and updated.

The ledger account would be updated with the debit and credit entries from the journal entry, resulting in an updated account balance.

Trial Balance:

A trial balance is a listing of all the accounts and their balances, used to ensure that the total debits equal the total credits.

A trial balance provides assurance that the entries made in the general ledger are mathematically accurate, and can be used to identify errors.

Income Statement:

An income statement, also known as a profit and loss statement, presents the revenues and expenses of a company over a certain period of time, typically one month or one year.

The difference between the revenues and the expenses gives the profit or loss of the company for that period of time.

It is important to note that this information provided is based on the given transactions, and may not reflect the actual process of journal entries, posting to ledger, trial balance, and income statement. Also, to generate a specific financial statement, further classification and adjustments entries would be need it to be done.

Communication which occurs via small
group discussion would fall under which
category?
A. synchronous
C. horizontal
B. a synchronous
D. vertical

Answers

Answer: A. synchronous

Explanation: Communication that occurs via small group discussion would fall under the category of synchronous communication. Synchronous communication refers to a type of communication that occurs in real-time, such as a conversation or a meeting. It involves people interacting with each other at the same time, rather than asynchronously, where people communicate at different times.

Question Content Area Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $21,000,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving cash of $19,417,090.

Answers

The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving cash of $19,417,090.The journalize entries to record the issuance of the bonds.

What is market?

In economics, a market is a composition of systems, institutions, procedures, social relations or infrastructures whereby parties engage in exchange

Markets facilitate trade and enable the distribution and allocation of resources in a society. Markets allow any tradeable item to be evaluated and priced.

Market participants consist of all the buyers and sellers of a good who influence its price, which is determined by the market forces of supply and demand.

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A group of students is studying for an economics quiz about economic cycles and how the government manages in an economy. In a market economy, strategies that change spending or taxes in order to influence economic conditions are known as:
O fiscal policy.
O equity promotion.
O monetary policy.
O economic stimulus.​

Answers

Answer:

A market economy is an economic system in which the production and distribution of goods and services are determined by the forces of supply and demand. In a market economy, the government can use various strategies to influence economic conditions, including fiscal policy and monetary policy.

Fiscal policy refers to the government's use of spending and taxation to influence the level of economic activity and manage the economy. This can include measures such as increasing government spending, reducing taxes, or a combination of both.

Monetary policy refers to the actions taken by a central bank, such as the Federal Reserve in the United States, to manage the supply and demand of money and credit in the economy. This can include measures such as adjusting interest rates or the amount of money in circulation.

The options "equity promotion" and "economic stimulus" are not typically used to describe government strategies to influence economic conditions in a market economy.

Answer:

A fiscal policy.

Explanation:

Fiscal policy deals with the government's taxation and spending policies and is the principal tool used by the government to influence aggregate demand and achieve macroeconomic policy objectives such as high employment, price stability, and economic growth.

5. When are government intervention or government regulations beneficial to consumers?
O when they impose regulations on businesses that limit profits
O when they limit consumer choices by regulating goods sold by private firms
O when they limit the number of businesses permitted to open and sell goods to consumers
O when they impose safety regulations that determine how bicycle helmets are manufactured

Answers

They impose regulations on businesses that limit profits as the government intervention or government regulations beneficial to consumers. Thus, option (a) is correct.

What is government?

The term “government” refers to the legal authority of the country. The government manages to control, command, and handle the country. The government's first priority is to ensure citizens are safe in the country.

According to the rule of the government was the based on the share the profit to the government as per the taxes. The business was the developed to pay the tax to the government to the set as limit of the profit.

As a result, the regulation as the limit of the profit as the set. Therefore, option (a) is correct.

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When will the U.S. armed forces provide financial aid?
A. during and after your service
B. before, during, and after your service
C. After you have served two years
D. Before and after your service
PLS ANSWER QUICKLY

Answers

C that’s ur answer :))))))

Entities such as offer certifications and qualifications in accounting that will help increase your future earning potential, deepen your knowledge, and enhance your credibility in the field.

Answers

There are numerous other professional associations, such as the institute of management, accountants, and American association of finance and accounting .

What is certifications and qualifications in accounting ?

So joining one of these organisations can help you improve your knowledge, raise your standing in the accounting community, and increase your earnings in the future.

In the United States, the CPA licence is the most widely used accounting credential for positions in accounting and finance. Your proficiency in tax, compliance, risk management, forensic accounting, and other fields is recognised by this accreditation.

A well-known accounting certification can help you get work, boost your marketability, and give you and your company professional credibility in a cutthroat industry.

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Communication which occurs via staff meeting would fall under which
category?
A. horizontal
C. vertical
B. a synchronous
D. Synchronous

Answers

Synchronous communication is the category that would best describe communication which occurs via staff meeting.

What is Synchronous?

Synchronous communication is a type of communication that occurs in real-time. It is a two-way process in which both parties involved must be present and actively participating in order for information to be exchanged. The exchange of information is immediate and occurs at the same time; there is no lag time or waiting period.

Synchronous communication is when two or more people are communicating at the same time, such as in a meeting or face-to-face. Horizontal communication is when communication occurs between people at the same level in an organization, while vertical communication is communication between people at different levels in an organization.

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Which of the following is not an example of restructuring?

Answers

Answer:

c

Explanation:

Increasing or decreasing the amount of common stock is not an example of restructuring. Thus, option 'A' is the correct option.

What is restructuring in a business?

A business restructuring is a key step that a company takes to change and reorganize its operations with the goal of lowering debt, boosting productivity, and enhancing the firm's moving ahead. Businesses experiencing financial challenges are more likely to reorganize.

A firm that finds itself in a situation where its debt is rising and it is having trouble making payments on time will frequently choose to restructure in order to find a sustainable solution to pay back all of its creditors and settle any outstanding debt. In general, the significance of corporate restructuring originates from its capacity to right the ship, divert attention from a gathering storm, and steer it in the direction of sheltered seas. It can act to turn around a failing business and position it for success.

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The complete options are:

a. Increase or decrease the amount of common stock

b. Eliminating profitable but unrelated divisions.

c. Merging with companies in related industries.

d. Divesting of an unprofitable division

Incredible Solutions issued a $1,120-par-value bond that is convertible at $28 per share. The current stock price is $30 per share. Calculate the conversion ratio and conversion value. Should bondholders exercise the conversion option?

Answers

If Incredible Solutions issued a $1,120-par-value bond that is convertible at $28 per share.

1. The conversion ratio is 40:1 and conversion value is $44,800.

2. Yes  bondholders should exercise the conversion option.

How to find the conversion ratio and conversion value?

1. Conversion ratio:

Conversion ratio =Common stock /Convertible per share

Conversion ratio=$1120/$28

Conversion ratio=40 shares

So,

The ratio is 40:1.

Conversion value:

Conversion value = Common stock price c

Conversion value

Conversion value=$1120×40

Conversion value=$44,800

2. Yes bondholders should  exercise the conversion option.

Therefore the conversion ratio is 40:1 and the conversion value is $44,800.

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Mary is a second year college stundent and wants to earn extra pocket money . she is good in making hand burgers,so she is considering opening up a hamburger stall on weekends at the local flea market near the compus. after investigating, she found the following: she can rent an exclusive site for R300 a day , payable in cash . this site can be rented for 10 hours per day . the existing major competitor in the flea market is selling hamburgers at R15 each. she reckons she will do well if she can sell better quality double cheese burger at the same price. she further decided to rent a fully equipped trailer , custom made for hamburgers stall with all additional accessories e.g signboards, gas ect. the rent is R460 per day. she would like to generate a salary of R500 per day plus an additional R240 per day for her little siister that would like to help her and also earn a little money. Mary further found that the ingredients of 1 hamburger add up to exactly R5. she also decided to rent a sign to fit above the trailer for R500 per day . Mary would like to know: how many hamburgers must she sell per day to cover her cost? motivate your answer by completing the table

Answers

View the picture attached (I will put the rest of the answer here:








We know that each hamburger costs R5 to make, and Mary would like to sell her double cheeseburgers at the same price as her major competitor, R15 each. Therefore, in order to cover her costs, she needs to sell enough hamburgers to generate R2000 in revenue. Since each hamburger is sold for R15, this means she needs to sell 133.33 hamburgers per day:
R2000 ÷ R15/hamburger = 133.33 hamburgers/day
It is good to note that she needs to sell more hamburgers than her competitors, to generate the same amount of money while having additional costs.

What is usually the best way to display date if you have more than 10 results? a. bar graph, b. pie chart, c. line graph, d. none of the above

Answers

BAR GRAPH

The best way to display data if you have more than 10 results is usually a bar graph (a).

A bar graph is a chart that uses horizontal or vertical bars to show comparisons among categories. It is a useful tool for visualizing data and comparing values across different categories.

For example, if you have data on the number of people who prefer different types of music, you could use a bar graph to show the relative popularity of each type of music. The bars in the graph would represent the number of people who prefer each type of music, and the height of the bars would correspond to the number of people.

Bar graphs are effective for displaying data when you have more than 10 results because they allow you to easily compare the values of different categories at a glance. They are also easy to read and understand, making them a popular choice for presenting data.

Option b, pie chart, is not usually the best way to display data if you have more than 10 results because pie charts can become cluttered and difficult to read when there are too many slices.

Option c, line graph, is not usually the best choice for displaying data with more than 10 results because line graphs are better suited for showing trends over time rather than comparing values across different categories.

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1. Visit two supermarkets preferably Imtiaz & Carrefour and take detailed notes on the layout of each store. You should look at the layout of the store overall, as well as the layout of individual departments such as clothing, crockery, fresh fruits, frozen item produce, meat, bakery, etc.
2. Compare and contrast the layouts of the two supermarkets. Look at the placement of different departments in each store, the use of signage and other visual cues to guide customers, and the layout of the checkout areas.
3. Consider the factors that might influence the layout of each store. For example, they might think about the target customer base of each store, the size and shape of the store, and the local cultural and economic context in which the store is located.
4. Present your findings in a report or presentation, explaining your observations and analysis of the layouts of the two supermarkets.
5. Also try to create a visual comparison of the layouts using diagrams or other graphics.

urgent answer needed

Answers

Supermarkets can be compare compared, I visited Imtiaz supermarket and Carrefour supermarket and both had different pros and cons.

What is Supermarket?

A supermarket is a place where a variety of products can be purchased, example Carrefour, Target and Walmart.

Both Imtiaz and Carrefour have all the departments that is clothing,  crockery, fresh fruits, frozen item produce, meat, bakery and more. Comparatively Carrefour have a larger variety of clothing and bakery items.

The placement of Bakery should be near the checkout I believe and so Carrefour have it at the end while Imtiaz usually have bakery in the start of the store, Clothing department is in the middle in the two supermarkets which is the better placement, but the signage are available at both supermarkets. In general the aisles in Carrefour seems more organized as compared to Imtiaz where aisles are scattered and not made in a structural way.

Imtiaz supermarkets are usually short on space and so also the aisles are small and at one time only one way trolley can be moved, while Carrefour have much space between the aisles. In Economic ways Imtiaz supermarket have lower rates as compared to Carrefour.

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If someone is found to be participating
in Insider Trading, the result could be
A. a promotion
B. award-winning
C. jail time

Answers

Answer:

jail time will be a perfect answer for your question.

Jail time is a great answer

The difference between a​ business's revenues and its expenses is known as its​ _______.

Answers

Answer:

Net income,

also known as the bottom line, is revenues minus expenses. There is a profit when revenues exceed expenses.

Which of the following best describes a way to use your website to improve the guest experience?

A personal call to the room after check-in to welcome guests
Easy-to-navigate menus with clear shortcuts for booking
Opportunities to accumulate user-generated content
Use of digital key cards for contactless check-in and room entry

Answers

The most effective strategy to use your website to enhance the visitor experience is to provide opportunities for user-generated material to gather. As a result, choice (C) is appropriate.

What is meant by guest experience?

The interactions you have with your visitors from the time they arrive until they check out are referred to as the guest experience. This phrase is frequently used in the hospitality sector to describe how well your customers are treated.

A positive guest experience is at the very heart of hospitality. Additionally, it should be a key component of your hotel's operations since, if done well, it will encourage clients to leave favorable internet reviews and even become devoted regulars.

Hence, option (C) is accurate.

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the graph at right shows the situation after the u.s. removes a tariff on imports of canned tuna.
A. C.
B. A+B+C+D.
C. A.
D. B+C+D.
Which area shows the loss in producer surplus?
A. B+C+D.
B. A+B.
C. A.
D. A+B+C+D.
Which area shows the loss in government tariff revenue?
A. A.
B. C.
C. A+B+C+D.
D. B+C+D.
Which areas show the reduction in deadweight loss?
A. B+C+D.

Answers

The graph that shows the situation when the U.S. removes a tariff on imports of canned tuna shows that the gain in consumer surplus is B. A+B+C+D.

The area which shows the loss of producer surplus is  C. A.

The area which shows the loss in government tariff revenue is B. C.

The area showing a reduction in deadweight loss is B+D.

What happens when a tariffs are lifted ?

When a tariff is lifted, the price of the good or service usually decreases, which increases consumer surplus. Consumers are able to purchase the same goods and services for a lower price, which results in a larger consumer surplus.

The price of the good or service usually decreases, which decreases producer surplus. Producers receive a lower price for the same goods and services, which results in a smaller producer surplus.

The government no longer receives revenue from that tax. Therefore, government revenue decreases when a tariff is lifted. The market becomes more efficient as the price of the good or service decreases, this leads to a decrease in deadweight loss.

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How do strong information literacy skills impact academic or professional career

Answers

It impacts the career by having a more significant range of knowledge that can be helpful in various ways through the entirety of the career.

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Not all industries and not all firms have sufferedequally during COVID-19. Find two industries: one that suffered tremendously and one that suffered less. Then find two firm within each other of the two industries: one
that suffered tremendously and one that improved performance (total of four firms). Investigate what are behind their performance differences.

Answers

Wide-ranging effects on company turnover between and within "high-contact" industries, including wholesale and retail, transportation and storage.

What sectors of the economy were unaffected by COVID?

Administrative and waste management services and professional, scientific, and managerial services are the other two areas that COVID-19 has least of an impact on. Real estate, finance & insurance, and rental & leasing.

What impact has COVID-19 had on the business field sector?

During the coronavirus pandemic in 2020, 6.0 percent of businesses cancelled, 9.7 percent postponed, 8.2 percent lowered, and 1.5 percent increased part of their anticipated capital expenditures. A total of 1.7 percent of businesses made new, unplanned capital investments.

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Which of the following is correct?

Negotiate it right, sell it right and deliver it right
Negotiate it right, price it right and deliver it right
Plan it right, sell it right and deliver it right
Plan it right, price it right and deliver it right

Answers

I think the correct answer would be Negotiate it right, sell it right and deliver it right.

No matter how much you plan it out, there might be issues that you face at the top of the supply chain. In such a case, you need to negotiate the price or other aspects of the product or service you are selling.

Emphasis also needs to be put on the way the product is sold or marketed. The marketing and advertising departments come into play here. They need to clearly define your client base target audience and the way in which you want to market your brand.

At the end, and most importantly lies the proper delivery of the service or product. It defines the future prospects for your brand.

The answer is negotiate it right, sell it right and deliver it right

Note that common skills are listed toward the top and less common skills are listed toward the bottom. According to O*NET, what are some common skills needed by Registered Nurses? Check all that apply.

coordination
social perceptiveness
active listening
equipment selection
equipment maintenance
installation

Answers

Coordination
Social perceptiveness
Active listening

3. Discuss clearly each authors/contributors theories/principles/assumptions.​

Answers

Authors are writers of a book or piece or writing. Contributors give money or some form of wealth to a cause they are contributing to. Theories are not considered facts but are based off of thoughts. Principals are like guidelines to doing something in a better or good way. Assumptions are thinking that something is a certain way even though you may not have any evidence to support that.

I really hope this answered your question, have an excellent day!

Authors are writers of a book or piece or writing.

Contributors give money or some form of wealth to a cause they are contributing to.

Theories are not considered facts but are based off of thoughts.

Principals are like guidelines to doing something in a better or good way. Assumptions are thinking that something is a certain way even though you may not have any evidence to support that.

What is functionalism social stability?

Functionalism social stability has been known as the key to have a strong society, and adequate socialization and social integration are necessary to achieve social stability. Conflict theory society is full of pervasive inequality based on social class, gender, and other factors.

The theory, functional theory for instance, can be used to understand it by knowing that Society’s social institutions perform important functions to help ensure social stability. The essence of such show is to bring about social stability

Conflict theory can help understand that far-reaching social change is needed to reduce or eliminate social inequality and to create an egalitarian society while functional theory is used to understand the show for social stability, the other theory, conflict theory, us used to bring about social equality.

Therefore, Authors are writers of a book or piece or writing.

Contributors give money or some form of wealth to a cause they are contributing to.

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Which do you think is the best interest when you save money? Explain your answer.

Answers

When saving money, the best interest would be A. Based on financial goals and risk tolerance.

What determines the best interest when saving money ?

The best interest when saving money will depend on the individual's financial goals and risk tolerance. Generally speaking, the best interest rate on savings accounts is the one that offers the highest return on investment while also being safe and accessible.

It's important to keep in mind that the best option will depend on the individual's financial goals, risk tolerance, and the amount of money they have to save. For short-term goals, a high-yield savings account or a CD may be the best option. For longer-term goals, an investment in bonds or money market funds may be more appropriate. Consult with a financial advisor or a professional before making any decision.

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Options for this question include:

Based on financial goals and risk tolerance. Based on the amount of money to be madeBased on the location of the investment

there is a complementarity between passenger and freight transport system. with some exceptions, such as busses and pipelines, most transport modes have developed to handle both freight and passenger traffic. in some cases both are carried in the same vehicle and in some cases the different modes join to deliver a complete service. what are the advantages of joint operations?

Answers

Some of the advantages of the joint operations are:

access to new markets and distribution networks.increased capacity.sharing of risks with a partner.access to new knowledge and expertiseaccess to greater resources etc.

What does joint operations means in transportation?

In transportation, joint operations typically refers to the coordination and cooperation between multiple transportation providers or agencies in order to provide more efficient and comprehensive service to customers.

This can include sharing resources, coordinating scheduling and routing, and cooperating on marketing and fare structures. This operations can take many forms, such as partnerships between bus and rail companies, or between public and private transportation providers.

The main goal of this operation is often to provide more seamless and convenient transportation options for customers, and to make more efficient use of resources.

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In 1999, the population of a country was 273,401,000. Of these, 16 million suffered from diabetes (and hence could not consume regular ice cream) and 30 million were lactose intolerant (and hence could not eat ice-cream). On average, consumption per person is 46.6 pints per year. The average price per pint in 1999 was $3.19. What is the market potential in (a) units and (b) dollars? ($ is used as a general unit of currency)

Answers

The market potential in units was approx 10.59 billion. The market potential in dollars was approx 33.8 billion.

What is the market potential?

The assessment of a market's sales revenue across all of its supply channels is known as its market potential. The population that is engaged in the good or service that a company produces or makes available is known as the market potential. In other terms, a company's market potential is its potential to make money if all of its advantages are capitalized and everything goes according to plan. Typically, it is expressed in terms of sales volume, sales units, or potential income. It is a portion of the whole population, with market potential being the entire number of people who could potentially use the good or service.

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The paid-off portion of your mortgage at any point in time is called the __________., a. equity, b. principal, c. down payment, d. line of credit

Answers

Answer:

b is answer i think ..........

According to O*NET, what are common skills needed by Psychiatrists? Check all that apply.

social perceptiveness
operation monitoring
speaking
active listening
troubleshooting
equipment selection

Answers

According to O*NET, the  common skills that is needed by Psychiatrists are:

a. Social perceptiveness

c. Speaking

d. Active listening

Who is a Psychiatrists?

A Psychiatrists can be defined as the person whose job is to treat people with mental disorder and to always create awareness about the preventive measure people should make use of so as to prevent mental disorder as by doing this will help to reduce the rate of people with mental disorder.

A Psychiatrists  should tend to possess social perceptiveness skills as this will enables him/her to know the reaction of people including the reason why people react or act  they way they does.

A Psychiatrists   should as well possess speaking skills as well as active listening  as  this can help to lead to effective communication between the Psychiatrists   and the patient. This will enables the  patients to pay full attention to what Psychiatrists   is communicating to them.

Therefore the correct option are  A, C, D.

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Answer:

Explanation:

acd

Explain international trade, alliance and conflict

Answers

International trade is the exchange of goods and services between countries. It is an important part of the global economy, as it allows countries to specialize in certain industries and to purchase goods and services from other countries. Alliances are agreements between two or more countries to cooperate in areas such as trade, defense, or foreign policy. Conflict is a disagreement or clash between two or more parties, usually involving the use of force or the threat of force. Conflict can be between countries, groups, or individuals.

Dwight Donovan, the president of Fanning Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of four years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $108,000 and for Project B are $48,000. The annual expected cash inflows are $51,270 for Project A and $20,675 for Project B. Both investments are expected to provide cash flow benefits for the next three years. Fanning Enterprises’ desired rate of return is 6 percent. (PV of $1 and PVA of $1) Use appropriate factor(s) from the tables provided.)

A. Compute the net present value of each project. Which project should be adopted based on the net present value approach?

B. Compute the approx. internal rate of return of each project. Which one should be adopted based on the internal rate of return approach?

Answers

The net present value of Project A is $29,045.32, and net present value of project B is $22,264.52. The project that should be adopted based on the net present value is project A.

What is net present value?

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

a. The net present value of Project A:

= Present value of cash inflows - Initial expenditure

= (51,270 x present value interest factor, 6%, 3 years) - 108,000

= 51,270 x 2.673012 - 108,000

= $29,045.32

The net present value of Project B:

= 20,675 × 2.673012 - 33,000

= $22,264.52

b. Calculation of Internal Rate of Return:-

The IRR has been calculated using the financial calculator.

The IRR of Project A is 16% and that of Project B is 14%.

IRR of project A is more than Project B,  which means Project A's return is more than project B. As per IRR Approach Project A is better than Project B.

Therefore, as per IRR and net present value approach Project A should be selected.

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