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3 years ago

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A medical group practice is considering offering a new service with risk that is greater than the current risk of the business.

in evaluating this investment, the decision maker should:

1 answer:

zlopas [31]3 years ago

4 0

Stick to the regular risk and not the new one

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Suppose the exchange rate is 90 yen per U.S. dollar and the United States wants to keep the exchange rate at a target rate of 90

ikadub [295]

Answer:

Option A, buys dollars to raise the exchange rate, is the right answer.

Explanation:

Option A is correct because when the Fed will buy the dollars then only the demand for dollars will shift rightwards. Consequently, the dollar price or exchange rate will go up. Therefore, the Fed will buy the dollars to increase the exchange rate. In another case, if the Fed wants to decrease the exchange rate then it will sell the dollars, and selling of dollars will shift the supply rightwards. Thus, the exchange rate will fall.

6 0

2 years ago

Midwest Water Works estimates that its WACC is 10.5%. The company is considering the following capital budgeting projects:

krok68 [10]

Answer:

Projects A,B,C,D and E should be accepted

Explanation:

Based on the fact that each of the itemized projects has the same of level of risk as the company's existing assets, we suggest that the firm undertake those projects that gives a return rate which is above the current weighted average cost of capital of 10.5%

In essence,projects A,B,C,D and E should be accepted as they 12%,11.5%,11.2%,11% and 10.7% returns on investment respectively.

Projects F& G would be rejected on the premise that their rates of return are lower than what is currently obtainable in Midwest Water Works.

7 0

2 years ago

Addison Co. budgets production of 2,790 units during the second quarter. Other information is as follows: Direct labor Each fini

Doss [256]

Answer and Explanation:

1. The preparation of direct labor budget is given below:-

Direct labor budget

Units to be produced 2,790

Hours required per unit 5

Total labor hours needed 13,950

(2,790 × 5)

Labor rate per hour $10

Direct labor budget $139,500

(13,950 × $10)

2. The preparation of factory overhead budget is given below:-

Total labor hours needed 13,950

Variable overhead rate per hour $12

Budgeted variable overheads $167,400

(13,950 × $12)

Budgeted Fixed overheads $580,000

Budgeted total overheads $747,400

8 0

3 years ago

True or false: you should only create a slide presentation if you know that you will be presenting in a smart room.

siniylev [52]

The answer C i think hope this help

5 0

3 years ago

Read 2 more answers

Katherine Potter knew a good thing when she saw it. At least, it seemed so at first. She was traveling in Italy when she spotted

lilavasa [31]

Katherine had to rush to the bank every few months to borrow more money. She didn't really talk to her banker about her financial situation because she had no trouble getting larger loans. You see, she was always on time with her payments. Katherine always took trade discounts to save money on her purchases. That is, she paid all of her bills within 10 days in order to save the 2% discount offered by her suppliers for paying so quickly.
Katherine's products were mostly purchased on credit. They'd buy a few lamps and a pot, and Katherine would let them pay overtime. Some were extremely slow to pay her, taking six months or more.
Katherine noticed a small drop in her business after three years. The local economy was struggling, and many people were losing their jobs. Nonetheless, Katherine's business remained steady. Katherine received a phone call from the bank one day, informing her that she was behind on her payments. She explained that she had been so preoccupied that she had missed the bills. The issue was that Katherine did not have enough money to pay the bank. She frantically called several customers for payment, but none of them could pay her. Katherine had a classic cash flow problem.

<h3>How is it possible to have high sales and high profits and run out of cash while running a business?</h3>

It is entirely possible if you have a high level of accounts receivables and inventory and a low level of accounts payables. A sale is recorded when an invoice is raised, and a shipment is delivered; this does not always imply that you received cash and that it is recorded in your accounts receivable. Similarly, if you keep a lot of inventory, a lot of your money is locked up until the inventory is sold. On the contrary, if your payment terms with your suppliers are less favorable, you will end up paying before your receivables convert to cash. As a result, high sales and profits do not always imply a strong cash position.

Learn more about profit:

brainly.com/question/13050157

#SPJ4

4 0

1 year ago