Step 1. Find NPV of each project: Note: NPV= (PV of CF)-( Cost)Project A: Given:
PMT=45,000; N = 5; I = 10% -> Find: PV = 173,997 -> NPV = 173,997-150,000 = 23,997Project B: Given:
PMT=162,912; N = 5; I = 13% -> Find: PV = 572,999 -> NPV = 572,999-570,000 = 2,999Since the projects are independent and they are both positive NPVs, the optimal choice would be to choose both.

A Deferred Tax Asset results from temporary differences that increase current taxable income compared to current pretax accounting income. This expense should not be recorded on an accrual basis until incurred in a future period. For this reason, an increase in a Deferred Tax Asset decreases the current period's Income Tax Expense.

For a 99% confidence interval we find z(0.005), the cut-off for the top 0.5% of the normal distribution. Looking up 0.995 in the middle of the table the reading to the row/column values, we get
2 .575. Working with the formula for E we get E = 1.29. So, the 99% confidence interval is $72 - 1.29 m
$ 72 + 1.29 or $70.71 m $73.29.

Budget deficit and trade deficit tend to be linked: budget deficit -->higher interest rates --> inflow of foreign capital --> dollar appreciation --> decline in net export.

The test statistic is measured AGAINST the critical value. The test statistic is defined as "...a quantity, calculated on the basis of sample, whose value is the basis for deciding whether to reject or not reject the null hypothesis." The critical value is found by referencing the probability distribution for the series (z-distribution, t-distribution, Chi-squared distribution, F-distribution, etc.).