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lisov135 [29]
3 years ago
9

Which of the following statements is CORRECT?

Business
1 answer:
san4es73 [151]3 years ago
6 0

Answer:

The answer is D. Multiple IRRs can only occur if the signs of the cash flows change more than once

Explanation:

A project cannot have multiple IRRs if it is independent. Multiple IRRs can only occur if the signs of the cash flow change more than once. For a project to have more than one IRR, then both IRRs must be greater than WACC. If a project's NPV is greater than zero, then it's IRR must be less than zero.

Multiple IRRs occur when a project has more than one internal rate of return. The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).

Internal rate of return (IRR) is one of the most commonly used capital budgeting tools.

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Which of the following is true about duration and modified duration?
My name is Ann [436]

Answer:

The truth about Macaulay Duration and Modified Duration is:

d. All are true.

Explanation:

Principally, the Macaulay Duration, used mainly with immunization strategies, measures the weighted average time an investor holds a bond until the period when the present value of the bond’s cash flows equals to the initial bond amount.

On the other hand, the Modified Duration, providing a risk measure by being sensitive to interest rates, identifies the amount by which the duration changes for each percentage change in the yield and, at the same time, measures how the amount of a change in the interest rates impacts a bond's price.

4 0
3 years ago
The Coffee Nook, a small cafe near campus, sells cappuccinos for $2.50 and Russian tea cakesfor $1.00 each. What is the opportun
Tasya [4]

Answer:

D) $1.00

Explanation:

Opportunity cost is the next best option forgone when one alternative is chosen over other alternatives.

If I buy a cappuccino, I have forgone the opportunity to buy Russian tea cakes. Therefore, my opportunity cost is the price of Russian tea cakes.

I hope my answer helps you.

7 0
3 years ago
Shore Company reports the following information regarding its production cost. Units produced 36,000 units Direct labor $ 31 per
Sedaia [141]

Answer:

$73.86 per unit

Explanation:

The computation of the cost per unit under the absorption costing is as follows

= Direct material per unit + Direct labor per unit + variable overhead per unit + fixed overhead per unit

where,

Variable overhead cost per unit

= $288,000 ÷ 36,000 units

= $8 per unit

And, the fixed overhead cost per unit is

= $102,920 ÷ 36,000 units

= $2.86 per unit

So the cost per unit is

= $32 + $31 + $8 + $2.86

= $73.86 per unit

3 0
3 years ago
A seller (or provider) of goods or services to a business organization, usually a manufacturer or wholesaler, is known as a:
Hatshy [7]
He is known as a VENDOR. A vendor is a part of the supply chain, he makes goods and services available to companies and consumers. Companies typically provide a vendor with purchase order which clearly states the products that the company wants to buy, the number of units needed, the price, the delivery date and other specifics.
5 0
3 years ago
Which best describes a way people can use personal loans? to buy a house to buy a car to pay for college to pay for groceries
Svet_ta [14]

Personal loans are unsecured loans offered by financial institutions based on factors such as employment history, repayment capacity, income level, profession, and credit history.

<h3>How do personal loans work?</h3>

When you are approved for a personal loan, the funds are often sent directly into your checking account. When you acquire a loan to refinance current debt, you can occasionally ask your lender to pay your invoices directly.

Prepare to begin payback within 30 days, regardless of how you receive your payments. If you have a variable-rate loan, your interest rate will fluctuate, which may cause the amount you owe to alter from month to month.

When you pay off your personal loan, the credit line is closed.

Thus, Option D is correct which describes personal loans.

For more information about Personal loans refer to the link:

brainly.com/question/19106746

8 0
2 years ago
Read 2 more answers
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