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mojhsa [17]
3 years ago
13

Two firms examined the same capital budgeting project which had an IRR of 16%. One firm accepted the project but the other rejec

ted it. One of the firms must have made an incorrect decision.
Discuss the validity of this statement.
Business
1 answer:
Mrrafil [7]3 years ago
7 0

Answer:

the statement is not valid. A company can reject the 16% IRR project if it is less than its discount rate. the discount rate is the minimum acceptable rate at which a project can be accepted. so, if 16% is less than than the discount rate, the project would be rejected.

on the other hand, if the discount rate is less than 16%, the project should be accepted because the return of the project would be greater than the discount rate.

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

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Jerry Seinfeld derives utility from only two goods: Puffy shirts (X) and cereal (Y). His utility function is: U = XY'. The price
Sladkaya [172]

Answer:

Hope this helps

Explanation:

His utility function is U=XY9. The price of X is 10 dollars and the price of Y is 20 dollars and Jerry has an income of 500 dollars. Suppose the price of Puffy Shirts increased to 20 dollars. The compensated bundle is 2.6794, 24.1149.

7 0
3 years ago
The FDA recommends the use of three risk designations when evaluating operations. Which designation is for actions and procedure
kykrilka [37]

Answer: Priority item.

Explanation:

I believe there should be options here but PRIORITY ITEM should be the answer anyway.

Priority items are the most critical items. They refer to a provision in the 2009 FDA FOOD CODE which when applied contribute directly to the hazards of foodborne illness or injury being eliminated, prevented or reduced to an acceptable level.

They include actions such as cooking, reheating and handwashing.

3 0
3 years ago
What is marketing mix? explain 4 P's of marketing mix.​
Cloud [144]

Answer:

Definition: The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place.

Explanation:

Plz mark brainliest thanks

4 0
3 years ago
Read 2 more answers
An unregulated natural monopolist will produce select one:
Kaylis [27]

Answer:

b. at the quantity where marginal cost equals the long run average cost curve.

Explanation:

This point will be the most effective to produce at after this point the shutdown point would be reached at surpassed.

6 0
4 years ago
The reported net incomes for the first 2 years of Sarasota Products, Inc., were as follows: 2020, $155,500; 2021, $188,100. Earl
Phoenix [80]

Answer:

Dr retained earnings($21,600+$15,800) $37,400.00

Cr  accumulated depreciation                                         $21,600

Cr inventory                                                                       $15,800

Explanation:

The errors that require adjustment are the overstatement and understatement of depreciation expense as well as the December 2021 overstatement of inventory.

The understatement of inventory in 2020 would have self-corrected itself in 2021 since closing inventory in 2020 deducted from costs of goods available  for sale would be introduced as opening inventory in 2021.

net effect of depreciation=understatement -overstatement=$37,500-$15,900=$21,600.00

hence retained earnings would reduce by $21,600.00

for the overstatement of inventory,retained earnings would reduce by $15,800

5 0
3 years ago
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