Suppose your boss has asked you to analyze two mutually exclusive projects-project a and project b. both projects require the same investment amount, and the sum of cash inflows of project a is larger than the sum of cash inflows of project b. a coworker told you that you don't need to do an npv analysis of the projects because you already know that project a will have a larger npv than project b. do you agree with your coworker's statement? yes, project a will always have the largest npv, because its cash inflows are greater than project b's cash inflows. no, the npv calculation will take into account not only the projects' cash inflows but also the timing of cash inflows and outflows. consequently, project b could have a larger npv than project a, even though project a has larger cash inflows. no, the npv calculation is based on percentage returns, so the size of a project's cash flows does not affect a project's npv.

1. gar principles or "the principles"are intended to do what?

Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporations’ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.

Double corporation acquired all of the common stock of simple company for