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kirill115 [55]
1 year ago
12

He wacc is the appropriate discount rate for use with ______ projects but should be adjusted ______ for higher risk ones

Business
1 answer:
gregori [183]1 year ago
8 0

The WACC is the appropriate discount rate for use with average projects but should be adjusted upward for higher-risk ones.

Securities analysts may use WACC when evaluating the value of investment opportunities. For example, in discounted cash flow analysis, as a discount rate for future cash flows, he can apply WACC to derive the net present value of the firm.

Using the WACC discount rate makes the present value of investment appear higher than it actually is.

Businesses typically use the weighted average cost of capital (WACC) as the discount rate. This is to take into account the rate of return expected by shareholders. DCF has limitations. Primarily, it relies on estimates of future cash flows that may be inaccurate.

Learn more about WACC at

brainly.com/question/25566972

#SPJ4

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A gift shop sells 2000 boxes of scented candles a year. The ordering cost is $100 for scented candles, and holding cost is $10 p
Gekata [30.6K]

Answer:

Minimun cost: $2000

Explanation:

We solve for the optimal order size using the

Economic Order Quantity:

Q_{opt} = \sqrt{\frac{2DS}{H}}

<u>Where: </u>

D = annual demand = 2,000 boxes

S= setup cost = ordering cost = $ 100

H= Holding Cost = $10.00

Q_{opt} = \sqrt{\frac{2(2,000)(100)}{10}}

Q_{opt} = \sqrt{40,000}

EOQ 200

It should order: 2,000 demand / 200 order size =  10 times

At a cost of 1,000 dollar (100 units x $ 10)

It will face an average inventory of 100 units thus holding cost:

100 units x 10 dollar per unit = 1,000

Total cost: 1,000 + 1,000 = 2,000

6 0
3 years ago
How would a computer enhance the productivity of a business
Bas_tet [7]
A computer would enhance the productivity of a business because it would produce better communication and would also help things be accomplished faster. hope that helps if not lmk

7 0
3 years ago
Read 2 more answers
During 20X1, the Balboa Software Company incurred development costs of $2,000,000 related to a new software project. Of this amo
sergey [27]

Answer:

$400,000

Explanation:

Data provided in the question:  

Development cost incurred = $2,000,000  

Amount incurred after the technological feasibility was achieved = $400,000

Now,  

The Software development costs that would be capitalized in 20X1

= Cost incurred after achievement of technological feasibility    

= $400,000  

3 0
3 years ago
Government Purchases $15 Personal Consumption 120 Gross Investment 25 Consumption of Fixed Capital (depreciation) 5 Exports 8 Im
beks73 [17]

Answer: $156

Explanation:

The gross domestic product is referred to as the value of the final goods which a particular country produces for that economy.

Based on the information given, the GDP will be calculated as:

GDP = C + I + G + X - M

where C = consumption = $120

I = Investment = $25

G = government purchases = $15

X = exports = $8

M = imports = $12

GDP = C + I + G + X - IM

GDP = $120 + $25 + $15 + $8 - $12

GDP = $156

4 0
3 years ago
Ben is a self-employed accountant who works overtime during the first two weeks of April to finish his clients' tax forms before
eduard

Answer:

<u>Elevated blood cholesterol level.</u>

Explanation:

Ben is more likely to show a elevated blood cholesterol level, as his overwork regime most often causes a sedentary lifestyle and poor diet.

Cholesterol is a lipid found naturally in the human body and is responsible for being the structural component of membranes throughout the body, it is used to produce vitamin D, hormones and bile acids for the digestion of fat. The liver makes 70% of cholesterol and the other 30% comes from the diet.

When it is above the recommended level, cholesterol can accumulate on the walls of the arteries and cause various heart diseases, such as angina, heart attack and stroke.

Therefore, to maintain blood cholesterol levels, it is necessary to adopt a healthy and balanced diet, in addition to the practice of physical exercises.

4 0
3 years ago
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