Answer:
The begining cash balance = $4100
Explanation:
Given:
Cash receipts = $7900, Cash disbursements = $ 9400, Ending cash balance = $2600.
<u>To find out the cash balance at the begining of the month, the following is to be used </u>
Begining Cash balance = Ending cash balance + cash disbursements - cash receipts
Putting the given figures in this we get,
Begining Cash balance = $2600 + $9400 - $7900
= $4100
Answer:
a. Project Low because its expected rate of return is higher than its WACC
Explanation:
Weighted Average Cost of Capital WACC determines firms cost of capital. It includes all sources of finance which are included in firm capital structure. The expected rate of return is the rate at which a project is able to generate return or benefits. For any project to be beneficial, its expected return should be higher than its WACC. We will select project Low because its expected rate of return is higher than its WACC.