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
shusha [124]
3 years ago
10

Using a company's cost of capital to evaluate a project is:

Business
1 answer:
yaroslaw [1]3 years ago
6 0

Answer: Option C  

             

Explanation: In simple words, cost of capital refers to the amount of return that the investor are expecting for tasking the risk of investing in the company. In other words, it is the amount the company has to offer in return to the investors for attaining the capital from the market.

Often the cost of capital is used to evaluate the profitability of the project, that is, if the return in project is higher than the cost of financing it should be taken by the company.

However there are other component while evaluating a project that is risks associated with it. Risk of every projects is different from the other and hence only those project should be evaluated on the basis of cost of capital that is similar to the company's average.

You might be interested in
The Garden Company began the accounting period with a $46,000 credit balance in its Accounts Payable account. During the account
pishuonlain [190]

Answer:

the  cash outflow for expenses is $106,000

Explanation:

The computation of the cash outflow for expenses is shown below:

Beginning balance $46,000

add; expenses $125,000

less; ending balance -$65,000

Cash outflow for expenses $106,000

Hence, the  cash outflow for expenses is $106,000

3 0
2 years ago
Managers should _______ in order to empower them, to lead for competence.
kaheart [24]
A is the answer to this question
7 0
2 years ago
The income tax saved by using lifo instead of fifo is equal to the​ ________ times the income tax rate.
marshall27 [118]
C. cost of the ending inventory
3 0
3 years ago
Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials
stiv31 [10]

Answer:

B) satisfying the changing needs of current and new customers.

Explanation:

When a restaurant wants to introduce a new dish, it's best to test the market response to the dish before listing it on the standard menu. A type of test would be offering the dish only in special occasions, when sales are higher, and more potential customers visit the restaurant.

Another way is to simply offer the dish in a normal weekday, and see how people respond to it under regular conditions.

8 0
3 years ago
A company reported total equity of $157,000 at the beginning of the year. The company reported $222,000 in revenues and $171000
Pani-rosa [81]
Wasssssupppp the answer will be B
4 0
3 years ago
Other questions:
  • Connolly Company produces two types of lamps, classic and fancy, with unit contribution margins of $13 and $21, respectively. Ea
    5·1 answer
  • When an activity threatens to harm the environment or society, policy makers should consider implementing?
    15·1 answer
  • Bennie’s Radiator Shop has installed a new machine that increases production by 200 units. Each unit sells for $30. What is the
    6·1 answer
  • Direct materials are $15 per unit; direct labor is $7 per unit and variable overhead costs are $2 per unit. If total product cos
    15·1 answer
  • Mutual funds are the riskiest type of investment.<br> true or false
    10·2 answers
  • Entrepreneurs' intentions are based on their perception of feasibility rather than someone else's impression of whether it is fe
    13·1 answer
  • The Xu Corporation uses a periodic inventory system. The company has a beginning inventory of 950 units at $12 each on January 1
    7·1 answer
  • The _______ describes the personal requirements you expect from an employee and can include educational requirements and special
    5·1 answer
  • Which of the following would not affect the outcome of a job interview?
    6·1 answer
  • When economists study aggregate supply and aggregate demand, what are they studying? the supply and demand of a good produced by
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!