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sergiy2304 [10]
4 years ago
13

Marcos Co. is considering a project that will increase residual income by $15,000. The project has a 12% return on investment (R

OI) which exceeds the company's 10% required rate of return. Marcos Co. currently has an overall 15% ROI in the department where this project would be implemented. Which of the following statements regarding this potential investment are true?
a. the project should be accepted because the residual income will push the project's roi above the projected 12%.b. the project should be rejected by the company because its roi is lower than the current departmental roi.c. the department manager may not want to accept the project because it will lower the overall roi for the department.d. the project should be accepted by the company because it increases overall residual income.
Business
1 answer:
siniylev [52]4 years ago
8 0

Answer:

C.) the department manager may not want to accept the project because it will lower the overall roi for the department.

D.) the project should be accepted by the company because it increases overall residual income.

Explanation:

Project will Increase residual income by $15,000

Project ROI = 12%

Company's required rate of return = 10%

Company's current ROI in the department where project is to be implemented = 15%

The company should accept the project because the 12% Return On Investment which the project yield surpasses the 10% required rate of return outlined by the company thus increasing the company's residual income.

However, the company's current ROI in the department where the project is to be implemented is 15% which is greater than the project's ROI of 12% and this will decrease the overall residual income of the department.

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A plaintiff in a successful lawsuit was awarded a judgment of $4800 per month for 5 years. The plaintiff has the need of a fairl
tatiyna

Answer:

58.81% annual

or 3.93% monthly

Explanation:

Using a financial calculator, we can determine the internal rate of return of this investment. The initial outlay is -$110,000, and the 60 $4,800 cash flows follow. The IRR is 3.93 per month. In order to determine the effective annual rate, we can use the following formula:

effective annual rate = (1 + 3.93%)¹² - 1 = 58.81%

8 0
3 years ago
If the production of a good created both external costs and external benefits, but the external costs were greater, without gove
hichkok12 [17]

If the production of a good created both external costs and external benefits, but the external costs were greater, without government intervention, a market economy will ​not produce the product at all.

In the production and consumption of goods and services, there exist costs that are passed on to a third party. The general public, who is ultimately responsible for paying for them, is in fact subsidizing goods and services with external costs.

External costs are still necessary to be paid for even when they are not included in the product's price. It is ultimately the responsibility of society as a whole to pay for external costs through taxes, accident compensation, medical expenditures, insurance premiums, deterioration in environmental quality, and losses in natural capital.

Usually, the price of goods and services includes External costs, which results in a higher overall cost. Because consumers frequently select the lowest options, clean, sustainable products have a pricing disadvantage.

Learn more about External costs here

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3 0
2 years ago
Peter, has discovered another wine, wine D. Wine drinkers are willing to pay 45 dollars to drink it right now. The amount that w
BabaBlast [244]

Answer:

e. 71 dollars

Explanation:

Peter was willing  to but the wine for $45

In a year, there is an increase of $15 = $45 + $15 = $60

The interest rate of 10% of $60 = $6

Total = $66 ~ $70

Therefore, the amount he is willing to pay for the win if he buys it as investment would be 71 dollars.

6 0
3 years ago
intext:"A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,0
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Answer:

Date     Account Titles and Explanation              Debit       Credit

              Land                                                         $84,000

                 Common stock                                                     $12,000

                  Paid in capital in excess of par value                 $72,000

Workings:

Amount of Common stock = Number of shares * Paid in capital per share

= 6,000 shares * $2

= $12,000

Amount of excess of paid in capital = Market value of land - Amount of common stock

= $84,000 - $12,000

= $72,000

8 0
4 years ago
I make 100,000 a day but i need more how can i get more without customers getting mad??
Nesterboy [21]

Answer:

Just work hard and be fast

Explanation:

Just work and be fast! People at the back wont get mad because you are a hardworking/fastworking man/woman!

3 0
2 years ago
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