Consider the following two mutually exclusive projects: Proj…

Consider the following two mutually exclusive projects: Project A: Initial investment $80,000; NPV = $15,000; IRR = 16%Project B: Initial investment $60,000; NPV = $12,000; IRR = 18% If the company can only choose one project, which should be selected and why?

Gamma Corporation budgets selling and administrative expense…

Gamma Corporation budgets selling and administrative expenses as follows:- Variable selling expenses: $3 per unit sold- Fixed selling expenses: $45,000 per quarter- Variable administrative expenses: $1 per unit sold- Fixed administrative expenses: $30,000 per quarter If budgeted sales are 15,000 units for the quarter, what is the total selling and administrative expense budget?

Omega Company is considering purchasing equipment for $200,0…

Omega Company is considering purchasing equipment for $200,000. The equipment will have a useful life of 8 years with no salvage value. Annual incremental revenues will be $120,000, and annual incremental expenses (including depreciation) will be $90,000. What is the simple rate of return for this investment?