If two projects (investments) a and b are said to be mutually exclusive, then we know that the firm must choose to invest in either A or B, but not both.
The term "mutually exclusive projects" is typically used in the capital budgeting process where firms select one project from a range of projects based on specific criteria, with the approval of one project resulting in the rejection of the other projects.
Capital projects that compete head-to-head are said to be mutually exclusive. Projects X and Y are said to be mutually exclusive, for instance, if a management must choose precisely between completing either project X or Y, but not both of them simultaneously.
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Answer:
0.175 or 17.5%
Explanation:
The calculation of the cost of common equity is shown below:-
WACC = Weight of Equity × Cost of Equity + Weight of Debt × ( 1- Tax rate) × Cost of Debt
0.13 = (0.55 × Cost of equity) + ((0.45 × (1 - 0.25) × 0.10)
0.13 = (0.55 × Cost of equity) + 0.045 × 0.75
(0.55 × Cost of equity) = 0.13 - 0.03375
(0.55 × Cost of equity) = 0.09625
Cost of equity = 0.09625 ÷ 0.55
= 0.175
Therefore for computing the cost of equity we simply applied the above formula.
Here, the company objective does best reflect the competitor-oriented type of pricing.
The process of fixing/determining a product price is very important in an organziation because it takes into consideration the cost incurred and profitability.
The competitor-oriented type of pricing is a pricing approach that considered its pricing based on other competitors price.
Therefore, the process of Fizzy Drinks Inc in deciding to be the lowest price competitor in the soft drink market is an example of competitor-oriented approach of pricing.
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Answer:
The correct answer is True
Explanation:
For the economy, an incentive is a stimulus that is offered to a person, a company or a sector with the objective of increasing production and improving performance. For example: a worker is offered an incentive of $200 a month if he can reach a certain sales quota. An incentive for a company could be the tax cut in case you hire new workers.
Human action is usually governed by incentives, many of which exist at the unconscious level. Each time a person performs a certain activity, he does so with an end that, in one way or another, will provide satisfaction. This end is the incentive that mobilizes the action.