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3 years ago

Which of the following is true while making a capital investment decision?

Business

1 answer:

True [87]3 years ago

6 0

Answer:

b. A manager should assess the risk of the project.

Explanation:

While making a capital investment decision, a firm shall properly evaluate the capital investments , for this the manager shall access the following:

Required return on investment by the firm.
Risk associated with the project.
Cash flows arising from the investment.
Timing of the cash flows for discounting them into present value.
Cost associated with the project.

Therefore, correct option is :

b. A manager should assess the risk of the project.

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Jennifer is leasing a car from a local auto retailer. The terms of the lease include a 9% interest rate for 36 months with a res

uysha [10]

Answer: $312.06

Explanation:

We are given that :

MSRP = $17500 , time = 36 months , interest rate = 9% , residual value = 57%

Exact residual value = 57% of 17,500 = $9975

Also, we know Money factor = rate ÷ 2400

money factor = 0.00375

Step 1 : To calculate monthly depreciation by using the formula :

Monthly Depreciation: MSRP-RESIDUAL VALUE / No. of MONTHS

17500-9975 / 36 = $209.03

Step 2 : To calculate monthly financial charge by using the formula :-

Monthly financial charge=( MSRP + RESIDUAL VALUE) . MONEY FACTOR.

Monthly financial charge = (17500+ 9975) . 0.00375= $103.031 25

Step 3 : To calculate lease amount by using the formula :

Lease payment = Depreciation + Financial charge

Lease payment = 209.03 + 103.031 25= 312.06

So, the approximate lease payment is $312.06

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3 years ago

The ________ is a federal statute passed in 1990 that requires food manufacturers and processors to provide nutrition informatio

balandron [24]

<span>Nutrition Labeling and Education Act
This act requires nutrition labeling on food and standardizes terms such as serving size, "low fat", "light", and the such. It prevents things such as claiming "low calorie" cause the "calories per serving" is only half of the competitors, while specifying an absurdly low serving size that's also half the size the competitors use.</span>

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You are a risk-averse investor who is considering investing in one of two economies. The expected return and volatility of all

galben [10]

Answer:

It's best to invest in the second economy

Explanation:

The question does not provide information on the hypothetical economic expectations of the two economies, but as a risk-averse investor, it's a better idea to try to "spread" the risk instead of concentrating it.

In the first economy, conditions might or might not be good. If they are good, returns will be extraordinary because all stocks will provide good returns, but if conditions take a turn for the worse, all stocks prices will fall and the financial consequences will be catastrophic.

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The Grind coffee shop offers drink cards to purchasers of its gourmet coffees with ten spaces. The cashier punches one space wit

Vera_Pavlovna [14]

A unilateral contract
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1 year ago

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