Answer:
E) the risks associated with the use of the funds required by the project.
Explanation:
Discount rate for an individual project should be based on the riskiness of the project.
Using the company's overall weighted average cost of capital might lead to misleading estimates because the project might be more or less risky than the overall firm
Some policies favor businesses, A firm that decides to expand internationally based on the availability of government subsidies in the host country is pursuing a competitive advantage.
<h3>What is competitive advantage?</h3>
Competitive advantage is factors that allow a company or industry to produce goods and services better, expand or produce more cheaply than its rivals.
A nation's competitiveness in business depends on the capacity of the industry to innovate and upgrade.
Therefore, a firm that decides to expand internationally based on the availability of government subsidies in the host country is pursuing competitive advantage.
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The target cost for each interior door is $96.
<h3>
What is manufacturing?</h3>
- Manufacturing is the process of creating or producing items with the aid of resources such as machinery, manpower, tools, chemicals, or biological formulations.
- It is the core of the economy's secondary sector.
<h3>What is operating cost?</h3>
- Operating costs, often known as operating costs, are the costs associated with running a company, or with running a machine, part, piece of equipment, or facility.
- They represent the cost of the resources an organization uses just to stay in business.
<h3>Solution -</h3>
Total revenue of the year (sales) = $120 × 20,000 = 24,00,000
Operating cost = 20% of sales = 4,80,000
Target cost of each door = 4,80,000 ÷ 20,000 = $24
120 - 24 = $96
Therefore, the target cost for each interior door is $96.
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A banker's acceptance is the payment guaranteed by a bank for a time draft that is payable to a seller of the goods.
A banker's acceptance is a short-term investment plan that is created by a company or firm with a guarantee from a bank. It is important that the company or firm is a non-financial firm. It is a guarantee that the bank gives that a buyer will pay the seller the amount at a future date. A good rating is a prerequisite for obtaining the banker's acceptance.
This is very useful, especially during foreign trade. During foreign trade, the creditworthiness of the importer is not known. The period of the banker's acceptance is usually lesser than 180 days. These acceptances are traded at discounts from the face value in the secondary markets. So, the banker's acceptance acts as a negotiable time draft.
This guarantee from the bank is a written promise by the bank to the seller to pay the sum specified if the buyer is not able to do so. This promise is backed by the bank so the seller feels confident in exporting his goods. As it is safe and liquid, the return on the banker's acceptance is low.
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Answer:
Ideally, the drunk driver who hit them while he was driving on the wrong lane is liable for the damages and not McLaughlin since he was sober and civil.
Explanation:
Liability for damages resulting from car accident usually falls on a negligent driver an din this case, McLaughlin is not the negligent one.
However, the situation is tricky here since he is not the owner of the car.
The majority of car accidents are caused by driver negligence, poor road conditions, or a problem or defect with one of the automobiles involved.
If his friend has a car insurance, that will cover for the damages as well.
And if the drunk driver finds a way to escape with a strong case, and in the absence of a car insurance, McLaughlin might be obligated to pay for the damages since the car was borrowed.
