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2 years ago

A firm should never accept a project if its acceptance would lead to an increase in the firm's cost of capital (its WACC).

1 answer:

3 0

B. False 1: False The decision of the project should be made based on the net present value that it adds to the company and not the impact on

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Easton Corporation is involved in the evaluation of a new computer-integrated manufacturing system. The system has a projected i

Novay_Z [31]

Answer and Explanation:

1. The discount rate is

If we go through the options

like we assume 10%

So, the net present value is

= ($250,000 × 4.3553) - $1,000,000

= $1,088,825 - $1,000,000

= $88,825

Now if the discount rate is 11%

So, the net present value os

= ($250,000 × 4.2305) - $1,000,000

= $1,057,625 - $1,000,000

= $57,625

So the net present value is $57,625

2. The profitability index is

= ($1,000,000 + $57,625) ÷ ($1,000,000)

= 1.058

3. The internal rate of return is

It is 12.98% that lies between 12.5% and 13%

6 0

3 years ago

The total output of the economy is bought by which of these groups of spenders?

Furkat [3]

Consumers
Businesses
And Governments

5 0

4 years ago

For a firm producing at any level of output GREATER than the most profitable one, a reduction in output decreases total revenue

Sedbober [7]

Answer: D. less than

Explanation:

Firms generally maximise output at the point where Marginal Revenue equals Marginal Cost. Any output greater than this point will lead to a higher amount of marginal cost being incurred vs marginal revenue which also means that a higher proportion of total cost was being incurred.

If a company therefore decides to remedy this and reduces output, this will lead to a fall in both revenue and cost. However, because the cost had been higher past that point, when it falls back to the maximising level, costs will fall more than revenue so that marginal revenue will equal cost again. This also means that total cost would fall more than total revenue.

4 0

3 years ago

Comparing and contrasting sets of data in order to rank them and make a decision best defines _____.

Murrr4er [49]

Comparing and contrasting sets of data in order to rank them and make a decisions best defines as evaluation. In evaluation, you need to rank your employees for the compensation or salary increase that they will receive. The most performer will receive the biggest increase since he has done bigger.

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4 years ago

Read 2 more answers

McDonald's serves McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, McHuevo Burger in Uruguay and

devlian [24]

The question is incomplete:

McDonald's serves McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variations are examples of a:

a. A combination of global and local marketing mix elements

b. a selection of menu items that can be sold eventually in U.S. markets

c. A replacement of standard menu names with fancy names

d. a deviation from successful marketing practices

e. a reflection of failure of US menu items in those countries

Answer:

a. A combination of global and local marketing mix elements

Explanation:

The answer is that these menu variations are examples of a combination of global and local marketing mix elements because the company tries to position its products on a global scale but also adjusts its strategies locally to adapt the placement and distribution to the specific characteristics of each country.

The other options are not right because McDonalds is adjusting its offer in its market to be able to establish its position in that market and not to be able to sell the items in US markets or to replace standard menu names. Also, this is the result of analyzing how to better position in a new market and not a failure of US menu items in those countries.

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4 years ago