Answer:
e. The company will take on too many high-risk projects and reject too many low-risk projects.
Explanation:
By using the WACC for discounting purposes in case of the higher risk projects the net present value would be greater in such cases and also the high discount rate is applied. It is easily accepted but at the same time it also rise the organization risk
Therefore in the given case, the option e is correct and the same is to be considered
The total interest earned at the end of 4 years is $2,507. 90.
The formula for determining simple interest is: Principal x interest rate x time
$4000 x 3.2% x 4 = $512.
The formula for determining interest with compounding is: future value - amount invested.
The formula for calculating future value:
FV = P (1 + r/m)^nm
- FV = Future value
- P = Present value
- R = interest rate
- m = number of compounding
- N = number of years
Future value of the savings account = $4000 x (1.021)^4 = $4346.73
Interest = $4346.73 - $4000 = $346.73
Future value of the certificate of deposit = $7500 x (1.0125)^16 = $9149.17
Interest = $9149.17 - $7500 = $1649.17
Total interest = $1649.17 + $346.73 + $512. = $2,507. 90.
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Answer:
15.90%
Explanation:
TO calculate the percentage of its budget is allocated annually to healthcare we need to calculate total tax revenue in a year by multiplying the quarterly tax revenue by 4. and then divide the health care allocation percentage by dividing the amount of health care by total tax revenue in a year.
Quarterly tax revenue = $33 billion
Number of quarters in a year = 4
Yearly tax revenue = $33 billion x 4
= $132 billion
Annual allocation to healthcare = $21 billion
Annual allocation to healthcare = ($21 billion/$132 billion) x 100
Annual allocation to healthcare = 15.90%
Answer:
the journal entries are made as follows;
Explanation:
May 1
A/R Dr.$1,296
Sales Cr.$1,200
Sales Tax payable Cr.$96
May 15
Cash Dr.$6,264
Sales Cr.$5,800
Sales Tax Payable Cr.$464
May 31
Cash Dr.$1,296
A/R Cr.$1,296
Answer:
the freedom for individuals to choose businesses, the right to private property, profits as an incentive, competition, and consumer sovereignty.
Explanation:
