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
Nezavi [6.7K]
4 years ago
10

An investment center manager has three potential projects to accept or reject. Return on Investment (ROI) of these three project

s is 12%, 15%, and 18%. Residual income of these projects, respectively, is $1,000, $50,000, and $400,000. These projects are not mutually exclusive (meaning all three of the projects could be pursued at once, if the manager desires). Which of the following statements is FALSE?
Business
1 answer:
Oksi-84 [34.3K]4 years ago
8 0

Answer:

c, b, a.

Explanation:

Important to note that a mutually exclusive is project or event is one that cannot both occur at the same time. Hence, since they are not mutually exclusive, they can thus occur at the same time.

Therefore, the statement "all three of the projects could be pursued at once, if the manager desires" is TRUE.

It is more likely that the manager's choice would be based on the project with the highest Return on investment (ROI) and residual income (meaning $400,000 residual income and 18% ROI project is selected).

You might be interested in
In one of the case studies in the textbook, Marcus Lane, a geologist for an environmental management and engineering services fi
aalyn [17]

Answer: The internal auditor discovered it when performing a routine audit of expense reimbursements

Explanation:

Marcus Lane, was a geologist who travelled all over North America and South America and this results in several expense reimbursements. Lane engaged in fraudulent activity by double booking his air travel.

He used cheaper ticket for the actual flight and more expensive ticket was returned for credit. But, he submitted the expensive ticket for reimbursement.

The fraud was discovered by the internal auditor while doing a routine audit of expense reimbursements. He was terminated and he agreed to pay the money back.

5 0
4 years ago
The total amount of equity (common stock, additional paid-in capital and retained earnings) that should appear on the balance sh
alex41 [277]

Answer:

Equal to the sum of their net assets (whether or not the assets are revalued)

Explanation:

Mathematically, equity equals the total asset of a company, less its total liabilities. This is also referred to the net assets of the company.

Equity = Total Assets - Total Liabilities

However, when two companies are merging, the total assets of the combining companies are usually revalued to reflect their current values and not the historical values usually carried in the books before the merger. In a revaluation, if the value of total assets increases, a corresponding increase will be recorded in Equity (revaluation surplus). This keeps the Equity-Net Assets equation equal at all times.

Thus, when two companies merge, the total amount of equity of the combined companies will equal the net assets of the combined companies, irrespective of whether a revaluation of the assets of the companies was done or not.

5 0
3 years ago
On January 1, 2021, Dean Corporation signed a ten-year noncancelable lease for certain machinery. The terms of the lease called
adell [148]

Answer:

c. interest expense of $107,361 and depreciation expense of $89,468.

Explanation:

The computation is shown below

The interest expense on lease is

= 8% of $1,342,016

= $ 107,361

ANd, the depreciation expense is  

= (present value of lease payments at the closing of 10 years) - (salvage value) ÷ life of the asset

= ($1,342,016 - $0) ÷ 15 years

 = $89,468

Hence, the option c is correct

6 0
3 years ago
Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,000, $9,000, and $1
nika2105 [10]

Answer:

$21,435.74

Explanation:

Marko will pay as much as the discounted present value of the cash flow:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $5,000.00

time  1.00

rate  0.14000

\frac{5000}{(1 + 0.14)^{1} } = PV  

PV   4,385.9649

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $9,000.00

time  2.00

rate  0.14000

\frac{9000}{(1 + 0.14)^{2} } = PV  

PV   6,925.2078

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $15,000.00

time  3.00

rate  0.14000

\frac{15000}{(1 + 0.14)^{3} } = PV  

PV   10,124.5727

We add them together and get the total price for ABC Co

\left[\begin{array}{ccc}#&Cashflow&Discounted\\&&\\1&5000&4385.96\\2&9000&6925.21\\3&15000&10124.57\\&total&21435.74\\\end{array}\right]

8 0
4 years ago
How would you deliver amazing in every interaction with our customers answer?
Tatiana [17]
To be considered amazing in every interaction with a customer, though it doesn't specify the business, one would have to possess a very positive attitude and believe that one is capable of solving all problems that arise or of finding help if necessary and be very motivated to serve the customers in providing them with what they need either info or products. 
6 0
3 years ago
Read 2 more answers
Other questions:
  • Work environment includes physical and social surroundings of work. True False
    5·1 answer
  • What is the net present value of the following stream of cash flows if the discount rate is 11.5%?
    10·1 answer
  • My question is highlighted in blue. Please help me! I’ll give brainliest and 50 points!
    10·2 answers
  • The day-to-day business of the UN is performed by the (2 points) Secretariat. Security Council. Secretary General. General Assem
    13·1 answer
  • Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common
    11·1 answer
  • An investor owns a portfolio of large capitalization blue chip stocks, each of which happens to be in the Dow Jones Industrial A
    6·1 answer
  • A national grocery chain sets up a store in a small town. It sources most of its produce from the local farmers. Since it source
    9·1 answer
  • All of the following are automatic fiscal stabilizers EXCEPT a decrease in overall tax revenues during a recession. a congressio
    11·1 answer
  • At the beginning of the year, you purchased a share of stock for $41. Over the year the dividends paid on the stock were $2.25 p
    5·1 answer
  • What is the impact of inflation on business cycles?​
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!