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IgorLugansk [536]

4 years ago

7

What would happen if we use the WACC for all projects regardless of risk? Assume the WACC = 15% Project Required Return IRR A 20

% 17% B 15% 18% C 10% 12%

1 answer:

Vika [28.1K]4 years ago

7 0

Answer and Explanation:

. What would happen if we use the WACC for all projects regardless of risk?

Ans. If we use the WACC for all projects, we might end up favoring risky projects. We could also potentially reject +NPV less risky project. Thus will lead to poor decision making. We must adjust the WACC to accommodate for risk of a project.

. Assume the WACC = 15%

Project Required Return IRR

A 20% 17%

B 15% 18%

C 10% 12%

which project would be accepted if they used the WACC for the discount rate ? explain why .

Ans. Considering WACC of 15%, acceptable projects would be - Project A & B, since these have IRR>WACC.

. which project would be accepted if you use the required return based on the risk of the project ? explain why

Ans. Considering required rate of return given:

Project Required Return IRR

A 20% 17%

B 15% 18%

C 10% 12%

Reject A (since IRR < Required return)

Accept B & C (since IRR > Required return)

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The FDA recommends the use of three risk designations when evaluating operations. Which designation is for actions and procedure

kykrilka [37]

Answer: Priority item.

Explanation:

I believe there should be options here but PRIORITY ITEM should be the answer anyway.

Priority items are the most critical items. They refer to a provision in the 2009 FDA FOOD CODE which when applied contribute directly to the hazards of foodborne illness or injury being eliminated, prevented or reduced to an acceptable level.

They include actions such as cooking, reheating and handwashing.

3 0

3 years ago

A real estate salesperson finds a buyer to a For Sale By Owner property. The home sells for $245,000, and the seller agrees to p

lubasha [3.4K]

Answer:

$4,277.5

Explanation:

Given:

Selling cost of the house = $245,000

Percentage of commission = 3%

Amount of commission = 0.03 × $245,000 = $7,350

Now,

The salesperson is on a 65% commission schedule with her broker

This means that the salesperson will get only 65% of the amount of commission

thus,

Commission to paid = 0.65 × $7,350 = $4,777.5

The final amount received = Commission - office expenses

or

The final amount received = $4,777.5 - $500 = $4,277.5

4 0

3 years ago

Lead time for one of your fastest-moving products is 24 days. Demand during this period averages 110 units per day. a) What wo

denis23 [38]

Answer:

a.) reorder point = 2,640 units

b.) reorder point = 5,280 units (reorder point doubles)

c.) reorder point = 1,320 units (reorder point drops in half)

Explanation:

Reorder point is the inventory level (point) at which action is taken (order placed) to replenish the stocked item. It is calculated as follows:

Reorder point = (Lead time × average daily sales) + safety stock

Lead time = 24 days

average daily sales = 110 units

safety stock = 0 (not given)

a.) reorder point = (Lead time × average daily sales) + safety stock

reorder point = (24 × 110) + 0 = 2,640 units

b.) if demand during lead time doubles:

lead time = 24 days

average daily sales = (110 × 2) = 220

∴ reorder point = 220 × 24 = 5,280 units

Therefore the reorder point doubles

c.) if demand during lead time drops in half:

lead time = 24 days

average daily demand = (110 ÷ 2) = 55 units

∴ reorder point = 24 × 55 = 1,320 units

Therefore the reorder point drops in half.

8 0

3 years ago

Mr. Curtis paid the following taxes: Federal income tax $ 72,250 Federal gift tax 361 Federal employer payroll tax for housekeep

tia_tia [17]

Answer:

Mr Curtis can deduct his total property taxes of $ 7,810.00 as well as the Indiana state income tax of $8,120.00 ,since this exceeds the Indiana state sales tax on consumer goods and services of $2,890.00 paid by Mr Curtis during the year.

Finally,the remaining are not deductible

Explanation:

In other words the following taxes are not deductible:

1.Federal income tax $72,250.00

2.Federal gift tax $361

3.The Federal payroll tax for housekeeper $1,301

4.Indiana sales tax on consumer goods and services$2,890

Lastly the property taxes deductible is computed thus:

Principal residence $3,980.00

Vacation home $2,530.00

Two automobiles $1,300.00

Total $ 7,810.00

8 0

3 years ago

. Demand-pull inflation occurs when multiple choice 1 there is a negative GDP gap. there is a negative price gap. there are incr

Alexxandr [17]

When there prices rise because of an increase in aggregate spending not fully matched by an increase in aggregate output, then, an economy is experiencing a Demand-pull inflation.

The Demand-pull inflation is the type of inflation experienced as a result of an imbalance in aggregate supply and demand, thus, the prices go up because of aggregate demand which outweighs the aggregate supply.

Therefore, the Option C is correct because when there prices rise because of an increase in aggregate spending not fully matched by an increase in aggregate output, then, an economy is experiencing a Demand-pull inflation.

Learn more about this here

<em>brainly.com/question/18072639</em>

8 0

2 years ago