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pychu [463]
3 years ago
13

A firm's WACC can be correctly used to discount the expected cash flows of a new project when that project will: Multiple Choice

be financed solely with new debt and internal equity. have the same level of risk as the firm's current operations. be managed by the firm's current managers. be financed solely with internal equity. be financed based on the firm's current debt-equity ratio.
Business
1 answer:
Serggg [28]3 years ago
5 0

Answer:

...when that project will have the same level of risk as the firm's current operations

Explanation:

Weighted average cost of capital (WACC) is the company's cost of capital based on its proportion of equity and debt used in its capital structure. It can be used as the discount rate for calculating the present value of future expected cashflows of a project if the project is determined to be of similar risk to the company's operations; meaning that the estimated beta of the project is the same as the beta of the firm.

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A machine with a cost of $142,000 and accumulated depreciation of $97,000 is sold for $56,000 cash. The amount that should be re
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3 years ago
If government tax revenues change automatically and in a countercylical direction over the course of the business cycle, this wo
luda_lava [24]

Answer: Option (C) is correct.

Explanation:

Correct Option: Political business cycle

If government tax revenues change automatically and in a countercylical direction over the course of the business cycle, this would be called a Political business cycle.

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7 0
3 years ago
A pizza deliverer who is in an accident while en route to deliver a pizza for a restaurant has: a. no liability for the accident
sleet_krkn [62]

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Explaination step by step:

6 0
2 years ago
Return on assets is equal to:________
Sunny_sXe [5.5K]

Return on assets is equal to<u> </u><u>a.</u><u> profit margin times asset turnover.</u>

An asset is a resource with a financial fee that a man or woman, enterprise, or country owns or controls with the expectancy that it will provide a destiny benefit. belongings are said on an employer's stability sheet. They're offered or created to increase a firm's fee or gain the firm's operations.

Despite all that in mind, an automobile is an asset due to the fact you may speedy advertise and convert it to coins, albeit for less than what you paid. That alone makes it an asset via definition. It is those added expenses and the steady decline in cost that make a car a depreciating asset.

Suitable properties are gadgets you could spend money on a good way to produce earnings for you like stocks, rental homes, actual property crowdfunding initiatives, and a web enterprise. these also can respect in cost overtime except producing money for you.

Learn  more about assets here brainly.com/question/25746199

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6 0
2 years ago
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