Question
34) A company borrows $2,000,000 and uses the money to purchase high technology machinery for its operations. These are examples of Select one: a. cash
34) A company borrows $2,000,000 and uses the money to purchase high technology machinery for its operations. These are examples of Select one: a. cash flow from financing and cash flow from investing b. cash flow from investing and cash flow from operations c. cash flow from financing and cash flow from operations d. cash flow from investing and cash flow from financing
35) Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. Lithium, Inc.'s required rate of return for these projects is 10%. The profitability index for Project A is Select one: a. 1.22 b. 1.12 c. 1.27 d. 1.17
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