Answer: Option C
Explanation: In simple words, cost of capital refers to the amount of return that the investor are expecting for tasking the risk of investing in the company. In other words, it is the amount the company has to offer in return to the investors for attaining the capital from the market.
Often the cost of capital is used to evaluate the profitability of the project, that is, if the return in project is higher than the cost of financing it should be taken by the company.
However there are other component while evaluating a project that is risks associated with it. Risk of every projects is different from the other and hence only those project should be evaluated on the basis of cost of capital that is similar to the company's average.
Answer:
The correct option is C
Explanation:
As company is producing or manufacturing in the area Chicago and produce or make the dryers and small washers for countries where the consumers have less living space. So, it participates in the global market by exporting. As exporting refers to exporting or transfer the goods to another country as they are produced in another country.
Answer:
17.39%
Explanation:
ROIC = NOPAT / Total net operating capital
ROIC = $400 / $2,300
ROIC = 0.17391304
ROIC = 17.391304%
Hence, the ROIC is 17.39%
As the price of computers falls the quantity of computer demand increases. This is an application of the law of demand.
What do you understand by the Law of Demand?
According to the law of demand, pricing has an inverse relationship with the number of goods purchased. Alternatively said, the quantity requested decreases as the price increases. Decreasing marginal utility is what causes this.
What is the Law of Decreasing Marginal Utility?
According to the law of diminishing marginal utility, consumption grows at the same time that the marginal utility from each new unit decreases. The incremental gain in utility caused by consuming one more unit is called the marginal utility. The word "utility" is used in economics to denote happiness or contentment.
Know more about the Law of Demand:
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Answer:
The weekly revenue is maximum at x=1.67.
Explanation:
The given function is
.... (1)
where, f(x) is the total revenue at price x.
We need to find the price x at which the weekly revenue is maximum.
The leading coefficient of the given function is -300, which is a negative number. So, it is a downward parabola and vertex of a downward parabola is the the point of maxima.
If a parabola is defined as
... (2)
then the vertex of the function is
From (1) and (2) it is clear that
The given function is maximum at
Therefore the weekly revenue is maximum at x=1.67.
