Question

Question 9 1 points Save Answe Afirm can we in one of two projects the purchase of new delivery vans or the training of its sales start in the use of new sales techniques. Both projects cost the same amount of money. The purchase of new delivery in is expected to reduce costs by $5.000 each year for 10 yows. The training of the sales staff in the use of a new sales technique is expected to increase revenues by $5.000 each year for 5 years. Which of melowing is true? Each of these prots would have the same expected rate of return as they both of the same The training of the sales staff would have the higher expected rate of retium, as it increases revenues whereas the purchase of delivery vans only reduce costs The purchase of delivery vans would have the higher expected rate of return, as it will reduce costs for a longer time period than the sales staff training will increase revenues The expected rates of return for these two projects carvot be compared, as one project reduces costs and the other increases revenues.

Answer 1

Question 9

Answer: D

Question 10

Answer: C. buy the tractor and the irrigation system

Question 11

Answer: A. $500,000

Question 12

Answer: D