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BARSIC [14]
2 years ago
12

The company's wacc is 10.5%. what is the irr of the better project? (hint: the better project may or may not be the one with the

higher irr.) round your answer to two decimal places.
Business
1 answer:
Inessa05 [86]2 years ago
5 0

The better the IRR, the better. but, a corporation may additionally decide on a mission with a decreased IRR as it has other intangible advantages, together with contributing to a larger strategic plan or impeding competition.

Solution:

NPV of Project S= -$1,000 +$895.03/(1+10.5%) + $250//(1+10.5%)^2 +$10//(1+10.5%)^3 +$5//(1+10.5%)^4 =25.49320776

IRR of Project S= -$1,000 +$895.03/(1+r%) + $250//(1+r%)^2 +$10//(1+r%)^3 +$5//(1+r%)^4 =0

IRR =12.80%

NPV of Project L = -$1,000+ $5/(1+10.5%) +$260/(1+10.5%)^2 + $420/(1+10.5%)^3 + $802.50/(1+10.5%)^4

=$67.01

IRR of Project L=

-$1,000+ $5/(1+r%) +$260/(1+r%)^2 + $420/(1+r%)^3 + $802.50/(1+r%)^4 =0

IRR =12.700%

Project L is better than Project S since L has higher NPV

IRR of Project L is 12.7%.

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Most farmers own wells and tube-wells in their farms for irrigation to increase their produce, what adverse effect can this have
Mrac [35]

Most farmers own wells and tube wells on their farms for irrigation to increase their production, which affects the water level. Thus, option B is correct.

<h3 /><h3>Who is a farmer?</h3>

A farmer is someone who does agribusiness and cultivates living things for food or natural goods like crops, cotton, etc.

The farmers would have wells and tube well on the farm because the irrigation to be much at a higher level with water reduces the water level of the ground to a significant amount which would in the future affect the soil plantation as well the soil binding capacities

There will be a large-scale depletion in the water that is present underground. Therefore, option B is the correct option.

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A decrease in agriculture output

B reduction of the water level

C loss of capital

D loss of soil fertility

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Answer:

It emphasize on applicant's continued interest because when you create a follow up letter after rejection, candidate should be confident and persistent . He should show confidence in meeting the job requirements.

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4 0
1 year ago
What are the two components of a universal policy?​
gtnhenbr [62]

Answer:

Hey mate.....

Explanation:

This is ur answer.....

<em>Universal policy premiums include two components: the cost of insurance amount and the savings component amount, also known as the cash value. The cost of insurance (COI) is the minimum amount you must pay to keep your policy active. This amount varies based on your age, health, and insured risk amount.</em>

Hope it helps!

mark me as the brainliest.....

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