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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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Land in the Marcellus Shale natural gas play is currently leasing for $10,000 per acre. 100 acres are needed in order to drill f
WARRIOR [948]

Answer:

You can find your answer in attached document.

Explanation:

7 0
3 years ago
Social responsibility is
snow_tiger [21]

Answer:

The correct answer is D.

Explanation:

The term social responsibility can be defined as an ethical framework or idea where the individuals and organizations feel obligated to work for the benefit of society at large. They feel accountable to a larger society.  

We know that a trade-off exists between economic growth and the welfare of society. The idea of social responsibility is to make an equilibrium between these two such that both economic growth and social welfare is achieved.  

This idea is not only limited to organizations but to anyone whose actions affect the environment.

7 0
4 years ago
K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $45,000 of personal cash to the partnership.
Elis [28]

Answer:

to record Decker's investment:

Dr Cash 45000  

    Cr Decker, Capital 45000

to record Rosen's investment:

Dr Land 10,000  

Dr Building 75,000  

    Cr Rosen, Capital 85,000

to record Toso's investment:

Dr Cash 10,000  

Dr Accounts Receivable 27,000  

Dr Equipment 14,000  

    Cr Allowance for Doubtful Accounts 2,700

    Cr Toso, Capital 48,300

total owners' equity = $178,300

6 0
3 years ago
Compute the requested value. Choose the correct answer.
Deffense [45]
The answer is <span>155.53

</span><span>The cost is $138.25. This is 100%.
The </span>desired markup is 12.5%. Let x be the price after t<span>he desired markup. x is 112.5% (100% + 12.5% = 112.5%).

Again:
</span>$138.25 is 100%
x is 112.5%

Make the proportion:
$138.25 : 100% = x : 112.5%
x = $138.25 * 112.5% : 100%
x = $155.53
3 0
4 years ago
Read 2 more answers
When the Mexican government changes the fixed exchange rate of the peso relative to the U.S. dollar from 1.5 (pesos/U.S. dollar)
Sunny_sXe [5.5K]

Answer:

The answer is: E) devaluated; appreciated

Explanation:

A currency devaluation happens when  a country´s currency is deliberately adjusted downward to make it lose value relative to another currency. If this downward adjustment happens in the foreign exchange market and is not deliberately done by a government, is called currency depreciation.  

A currency revaluation happens when a government deliberately adjusts the value of its currency upwards to make it gain value relative to another currency. When this upward adjustment happens in a foreign exchange market and is not deliberately done by a government, is called currency appreciation.

5 0
4 years ago
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