1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
anastassius [24]
3 years ago
10

Now suppose this project has an investment timing option, because it can be delayed for a year. The cost will still be $70 milli

on at the end of the year, and the cash flows for the scenarios will still last 3 years. However, Tropical Sweets will know the level of demand and will implement the project only if it adds value to the company. Perform a qualitative assessment of the investment timing option’s value.
Business
2 answers:
padilas [110]3 years ago
5 0

Explanation:

Qualitative analysis;

The given case belongs to real options in finance terms where the project offers tangible assets in comparison to financial instruments.

The project is of real option. The value of any real option would be more when:

  • the project under consideration is very risky
  • With respect to timing option value, there is time to change the decisions

Having said that, since project is risky and investment can be made later, hence it would be more feasible to wait and observe

vitfil [10]3 years ago
4 0

Answer:

Refer below.

Explanation:

Qualitative Assessment

The value of real option increases if:

1.the underlying project increases risk.

2.there is quite a while before you should practice the alternative.

Therefore,

The project is risky and has 1 year before we should choose, so the alternative to hold up is likely important.

You might be interested in
A firm has actual sales in November of $1,000 and projected sales in December and January of $3,000 and $4,000, respectively. Th
inn [45]

Answer:

b. 2,100

Explanation:

On January will be collected: a) 10% January´s sales because is collected in cash; b) 40% December´s sales because is collected one month following the sale, and 50% November sales because the balance is collected two months following the sale.

So we can calcula like follows:

Expected cash receipts in January = (4,000 * 0.10) + (3,000 * 0.40) + (1,000 * 0.50)

Expected cash receipts in January = 400 + 1,200 + 500

Expected cash receipts in January = 2,100

8 0
3 years ago
When U.S. goods become more expensive relative to foreign goods, exports will __________ and imports will __________.
ipn [44]

Answer:

fall, rise

Explanation:

US goods will become less expensive

3 0
3 years ago
Drew is in charge of writing a report for his company that talks about the quality and safety of his company's products, busines
ira [324]

Answer: Compliance review

Explanation: A compliance review can be defined as an audit done with the objective to assess whether the company is following the regulatory guidelines. In such a review the auditor tries to determine if the items that being examined complies with the set standards.

In the given case, Drew is  writing the report to spread the information that they are following all the guidelines related to safety and quality.

Thus, from the above we can conclude that the correct option is C.

7 0
3 years ago
Joneen owns a farm. in a signed writing, joneen gave sue the irrevocable right to use a road on his farm so that sue could more
nadezda [96]
<span>Joneen gave Sue a cartway claim to access her own property across a portion of Joneen's property. This type of easement allows an individual to access their property via another, privately owned parcel for the purposes of accessing landlocked property.</span>
8 0
3 years ago
A game may not start or continue if either team has fewer than ____ players.
Leni [432]
The answer is 7 players.
If, the amount of red cards that received by either team make the total players of their team less than 7, the opposition team would automatically won the game (and the vicotry would be recorded as 3-0 victory for the team that still had more than 7 players)
3 0
3 years ago
Other questions:
  • When more than one central bank attempts to shift the equilibrium exchange rate, we refer to this as:?
    10·1 answer
  • As part of PSM standards, hazard communication standards require employers who use hazardous chemicals to _____.
    8·1 answer
  • Although it is a small company, Zorn Enterprises owns a large number of inexpensive rental housing units in Texas and Louisiana.
    12·1 answer
  • In order to reduce the harmful affects of recession and carbon emissions, the government provided tax incentives for manufacturi
    5·2 answers
  • (1) Quality of products available in superstore.
    15·1 answer
  • Assume the market for ball bearings is purely competitive. Currently, each of the firms in this market is earning positive econo
    13·1 answer
  • Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Tota
    14·1 answer
  • A plaintiff sued a defendant in a patent infringement suit. To sustain his claim, the plaintiff was required to demonstrate the
    14·1 answer
  • Suppose you have $1,325 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually.
    6·1 answer
  • you just saw a video advertisement that shows an interview with a celebrity who says her life changed for the better when she st
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!