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neonofarm [45]
3 years ago
15

Two projects, A and B, are analyzed using ranking present worth analysis with MARR at i%. It is found that PW(A) . PW(B). If MAR

R is changed to (i 1 1)%, what will be the relationship between PW(A) and PW(B)?
Business
1 answer:
vivado [14]3 years ago
3 0

Answer: The relationship between A and B project cannot be determined with the information given.

Explanation: The relationship between PW(A) and PW(B) is the correlation between project A and Project B in a portfolio.

This is not possible to be calculated with the information given.

But an expression of calculating this is;

PW is the present value of A and B projects.

MARR is the minimum acceptable rate of return

The calculate the correlation of the two project, divide MARR by the multiple of the two project.

That is;

Correlation = MARR ÷ [PW(A) × PW(B)]

Therefore;

Correlation = i11% ÷ [PW(A) × PW(B)]

This shows that the relationship cannot be determined with the limited Information supplied.

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St. Vincent's, Inc., currently uses traditional costing procedures, applying $800,000 of overhead to products Beta and Zeta on t
tatyana61 [14]

The overhead cost that should be allocated to Zeta via activity-based costing is $356,000.

The following formula for determining the overhead cost allocated to Zeta:

= Zeta pool no 1 ÷ total pool no 1 × pool cost + zeta pool no 2 ÷ total pool no 2 × pool cost + zeta pool no 3 ÷ total pool no 3 × pool cost

= 2,800 ÷ 4,000 × $160,000 + 55 ÷ 100 × $280,000 + 750 ÷ 3,000 x $360,000

= $356,000

Therefore we can conclude that the overhead cost that should be allocated to Zeta via activity-based costing is $356,000.

Learn more about the overhead here: brainly.com/question/11950737

6 0
2 years ago
The interest rate on a 1-year canadian security is 8%. the current exchange rate is c$ = us $0.78. the 1-year forward rate is c$
leva [86]
Answer: 5.23% 
Explanation:
 Given , interest rate, r =0.08; current exchange rate, c =0.78 and forward
rate, f= 0.76
 Let X represent the return earned by the U.S. investing in Canadian security
 x = 1+((1+r)*f/c)
 x =1+(1.08*[0.76/0.78])
  = 5.23%.

6 0
3 years ago
What would happen to the economy if the president disbanded the board
PIT_PIT [208]
Monarchy, and downfall. Peoples voice over the official boards. There would be a better market in a way, but it would also be more cut, and strict.
5 0
3 years ago
Many consumers consider goods X and Y to be complements. If there is an increase in the price of good X, then (all else the same
Lemur [1.5K]

Answer:

False

Explanation:

Complement goods are goods that are consumed together.

If the price of good X increases, producers would increase their supply of good Y and X.

An increase in supply shifts the supply curve to the right.

I hope my answer helps you

5 0
3 years ago
Which results is a positive aspect of globalization
Pavel [41]

Globalization has brought benefits in developed countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure.

4 0
3 years ago
Read 2 more answers
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