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shusha [124]
2 years ago
10

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

Business
1 answer:
yaroslaw [1]2 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.

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At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $45. A
Burka [1]

Answer:

The special order should be : Accepted

Explanation:

<u>Analysis of whether or not to accept special order</u>

Revenues (3,000 x $25)                             $75,000

Less Variable expenses :

Costs - Manufacturing (3,000 x $20)       ($60,000)

Shipping (3,000 x $3)                                  ($9,000)

Net Income                                                    $6,000

Conclusion :

Since Net Income has increased by $6,000 as a result of special order, it should be accepted

6 0
2 years ago
Explain why is it useful to identify workers within a specialist area
ANTONII [103]

it is useful to identify workers within a specialist area because if you need something done quickly and accurately, you can call the person who is really good at something, to help you without worrying if you wont complete the task on time.

3 0
2 years ago
The most expensive benefit is usually
Veronika [31]

Answer:

c

Explanation:

the health care because it is very expensive benefit

6 0
3 years ago
Read 2 more answers
When governments tax or regulate industries causing pollution, they are
LekaFEV [45]
I think it’s A Idek
4 0
2 years ago
The XYZ Corporation has a distinct division of labor, consistent rules, and a clear hierarchy. Managers maintain distance betwee
Mamont248 [21]

Answer:

A bureaucracy

Explanation:

Bureaucracy is an organisational structure that is aimed at maintaining uniformity and control in an organisation.

This is achieved through established processes and ways of interaction between staff.

Bureaucracy is characterised by multiple layers and complex processes that makes actions and decisions slow.

This is exemplified in the given scenario where XYZ Corporation has a distinct division of labor, consistent rules, and a clear hierarchy. Managers maintain distance between themselves and subordinates, and promotions are awarded based on technical expertise.

3 0
2 years ago
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