Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
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Answer:
Opt in
Explanation:
Opt in policy approach, is the kind of approach in which the policy is sets out in order to ensure the consistent application and the understanding of the firm or company opt in approach for communication with the individuals.
In short, it is defined as the permission expressed by the company or the firm, which gathers or collect the information , does not use the information for any other motive unless the client or the customer specially chooses or opt to allow for using the information.
In the <span>1920s, many rural banks failed because of the failure of the farms to produce the bumper crops they were producing previously. The farmers had invested heavily in machinery and storage facilities. They drop in production meant that the investment did not recover and they failed to pay their loans back. </span>
Answer:
e) Increase the required rate of return used to evaluate the project to reflect the higher risk of the project
Explanation:
As per the basic concept of investment, "higher the risk, higher the return".
Thus, an investor assumes a higher risk only in the scenario wherein the expected return would be commensurate with such risk. Investor would only invest in a risky asset when the return derived can compensate him for the excess risk assumed.
Required rate of return is an investors expectation of return from a project also referred to as the cost of capital.
So for the purpose of evaluating the project, the investor should use a higher required rate of return to signify higher risk which would reveal the true viability of the project.
