Answer:
Multiple IRRs:
Said another way, Multiple IRRs occur when a project has more than one <em>internal rate of return.</em> The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).
Internal rate of return (IRR) is one of the most commonly used capital budgeting tools. Investors make decisions by comparing the IRR of the project under consideration with the <em>hurdle rate</em>. If the IRR is greater than the hurdle rate, the project is accepted, otherwise it is rejected. When there are more than two IRRs, it is not exactly clear which IRR to compare with the hurdle rate.
Hurdle rate is the minimum required rate of return which businesses use as a benchmark to decide whether to invest in a project or not.
<em>So a typical situation which can generate negative cashflows which can in turn lead to multiple IRRs towards the end of the project is where the conditions of investment become adverse towards the end of the project.</em>
Imagine that toward the end of the lifecycle of a project, a forecasted increase external costs such as Interest Rate, influenced by government policies translates to an erosion of the bottom line generated by the business in that year.
Period 0 1 3 3 4 5
Unconventional cash flows ($)-19,000 16,000 16,000 6,000 6,000 -52,000
The series is non-conventional cash-flow pattern, which has two sign changes. This is the range in which the net present value of the non-conventional cash flow series is positive. The multiple IRR problem poses a series problem to analysts because the decision is not obvious.
Cheers!
Answer:
D.....................................
Answer:
8.30%
Explanation:
The weighted average cost of capital of the company is computed using the WACC formula below:
WACC=(We*Ke)+(Wp*Kp)+(Wd*kd)
We=weight of common equity=50%
Ke=cost of retained earnings which is a proxy for the cost of equity=11.50%
Wp=weight of preferred stock=20%
Kp=cost of preferred stock=6.00%
Wd=weight of debt=30%
Kd=after-tax cost of debt=4.50%
WACC=(50%*11.50%)+(20%*6.00%)+(30%*4.50%)
WACC=8.30%
Answer:
e. Passive aggression
Explanation:
Passive aggressive behaviors can be defined as a type of behaviour which a person or an individual exhibit , which makes such person to express their negative feelings through their actions or by being indirectly aggressive instead of handling their feelings directly which is why a person or an individual with this type of behaviour often have resistance to requests by acting stubborn reason been that such person may feel angry or frustrated and act neutral, and then find an indirect ways to show how they really feel instead of communicating directly.
Secondly a person which PASSIVE AGGRESSIVE BEHAVIOUR will often posses this type of trait such as Trying to play the victim when issue arise, making excuses, blaming others for their action, hiding their anger, Trying to avoid direct communication just as in the case of Chad.
Therefore based on the information given about Chad,This is an example of PASSIVE AGGRESSION conflict style.
