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trapecia [35]
3 years ago
15

Differentiate between WACC and MCC in finencial accounting

Business
1 answer:
dybincka [34]3 years ago
3 0
Marginal cost of capital is basically addition to the cost due to the new project. WACC is for all projects running by company. If MCC and WACC both are given in the question, I would say choose MCC as MCC is more appropriate for choosing the new project, especially when “optimal” word is given in the question. WACC might not yield the correct decision as it could be either very low or very high. However, most of the time you undertake only those projects which are of same risk so WACC and MCC should ideally be same in general
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In a small open economy, starting from a position of balanced trade, if the government increases domestic government purchases,
nordsb [41]

Answer:

Option A is correct.

deficit; negative

Explanation:

In a small open economy, starting from a position of balanced trade, if the government increases domestic government purchases, this produces a tendency toward a trade <u>deficit </u>and <u>negaive</u> net capital outflow.

This corresponds to the concept of twin deficits where a budget deficit that results from increased government purchases, also results in current account deficit. Since trade deficit implies negative NX there is a negative NCO.

6 0
3 years ago
In the context of the​ firm's supply​ curve, as the firm produces more of a​ good, the cost of producing each additional u
Flura [38]

Answer:

decrease

Explanation:

Marginal cost is a concept that explains the cost a company has to produce one more unit of good. This is a measure that is associated with the productivity of the inputs used in the production process. When a company increases production, marginal cost tends to decrease as inputs are better utilized. This is because the company specializes in production in order to streamline inputs and increase productivity.

5 0
4 years ago
Boards and commissions, such as the ________ for example, are in charge of overseeing specific industries.
Ostrovityanka [42]
Independent Regulatory Boards and Commissions, Government organizations that direct different businesses, businesses or financial segments. They are shaped and concurred by power by Congress to control a particular industry, and there are 38 of these offices some of which includes the FCC and the FAA
5 0
3 years ago
Winona and Hubert need to decide which one of them will take time off from work to complete the rather urgent task of shearing t
Flauer [41]

Answer: Winona has the lowest opportunity cost of completing the task.

Explanation:

Based on the information given in the question, the opportunity cost will be calculated as:

= Earnings per hour × Hours taken to complete the task

Therefore, for Winona, the opportunity cost will be:

= 1 × $200.

= $200.

For Hubert, the opportunity cost will be:

= 9 × $25

= $225

Therefore, based on the calculation above, Winona has the lowest opportunity cost of completing the task.

5 0
3 years ago
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o-na [289]

Answer: Cause or no cause took place

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1. The EEOC investigator will request that the charging party and the organisation provide information on the situation. The investigator will then go through this info and make a recommendation on if reasonable cause does exist.

2. If the EEOC investigator determines that reasonable cause exists, then this investigator will issue a letter of determination stating this fact, to all parties involved. All the parties including the investigator will then discuss how to resolve this charge through a process known as conciliation.

3. If however it is determined that reasonable cause for workplace discrimination did not take place, then the investigator will issue the charging party and the organisation with a dismissal and notice of rights document. This document stipulates that the charging party has 90 days to file a lawsuit in federal court if he/she decides to take further action against the organisation.

7 0
4 years ago
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