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vekshin1
3 years ago
13

Carriage Inc., a steel manufacturing company, is planning to buy a new plant. The internal rate of return provided by the new pl

ant is 6%. The cost of capital for Carriage Inc. is 8%. Based on the given scenario, which of the following statements is true in the context of internal rate of return?a.Carriage Inc. should invest in the new plant because the project will earn more than zero IRR from the project.b.Carriage Inc. should not invest in the new plant because the IRR of the project is less than its cost of capital.c.Carriage Inc. should not invest in the new plant because IRR is not a reliable model for making capital investment decisions.d.Carriage Inc. should invest in the new plant because IRR is the true or actual simple rate of return that is earned by the initial investment.
Business
1 answer:
harina [27]3 years ago
5 0

Answer:

Carriage Inc. should not invest in the new plant because the IRR of the project is less than its cost of capital.

Explanation:

The investment should NOT be made in the new plant because its internal rate of return is lower than Carriage's cost of capital.

In simple language since the return (IRR) that will be gotten from the new plant is LOWER than the cost (cost of capital), then the company is not making a profit if it invests in this new plant.

Generally, as a decision rule, a company should only invest when the IRR is higher than (or equal to) its cost of capital.

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The _________ __________ of a speech are the major ideas that you will relay to receivers through your speech.
Eddi Din [679]
The main points of a speech are the major ideas that you will relay to receivers through your speech. This is the important point you want the audience to bear in mind. This is the primary purpose <span>of your speech. This is the backbone of your talk that you believe would be useful for the audience. The main points usually </span>have<span> these three basic needs – the claim, the explanation, and the evidence. You want to claim something so you are going to explain it to your audience. In order to persuade your audience, you will be providing evidences supporting your claims.</span>
5 0
3 years ago
On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $24.50 per share. On March 1, a dividend of
Naddik [55]

Answer:

$2,435

Explanation:

Data provided in the question:

Number of shares sold = 100

Price of Lowe's stock  = $24.50 per share

Dividend paid = $3.20

Price of buying stock = $20.00 per share

Commission paid = 15 cents per share = $0.15 per share

Now,

Total cost of selling the shares = $24.50 × 100

= $2,450

Total commission = $0.15 × 100

= $15

Therefore,

Proceeds from the short sale = $2,450 - $15

= $2,435

8 0
3 years ago
Identify the following as a fixed asset (FA), or intangible asset (IA), natural resource (NR), or none of these (N). a. Computer
julsineya [31]

Answer:

a. Computer - fixed asset

b. Patent - intangible asset

c. Oil reserve - natural resource

d. Goodwill - intangible asset

e. U. S. Treasury note - none of these (N)

f. Land used for employee parking - fixed asset

g. Gold mine - natural resource

Explanation:

Intangible assets are the assets of a company that cannot be seen or they are not physical in nature. They are usually difficult to evaluate. They include:

  1. Goodwill
  2. Patent
  3. Trademarks
  4. copyrights

a fixed asset is a long term tangible piece of property or equipment that a company has and uses it to generate income. they include plant, property and equipment.

A natural resource is a substance that occurs in nature that can be used to generate economic profit.

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2 years ago
Help please!!
Vanyuwa [196]

Answer:

Linkedin

Explanation:

it specializes in that department

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3 years ago
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3 · 32 + 8 ÷ 2 − (4 + 3)<br><br> A. <br> 30<br> B. <br> 23<br> C. <br> 24<br> D. <br> 32
JulsSmile [24]

3. The answer is 24 [c]

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3 years ago
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