A company emphasizes scenario analysis in its strategic planning where it develops four alternative futures based on two key variables: the cost of energy and the extent of growth opportunities in emerging markets.
The technique of evaluating a portfolio's expected value following a specific change in the values of key elements is known as scenario analysis. This method, which frequently makes use of computer simulations, can be used to test both likely scenarios and unlikely worst-case events.
The terms scenario planning, scenario thinking, scenario analysis, scenario prediction, and the scenario approach all refer to a flexible long-term planning technique used by some businesses. It is largely an adaptation and generalization of traditional military intelligence techniques.
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Answer:
b. NPV < 0
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
The decision rule is invest if IRR > required rate of return and don't invest if IRR < required rate of return.
The net present value is the present value of after tax cash flows from an investment less the amount invested.
The decision rule is invest if NPV > 0 and don't invest otherwise.
The payback period measures how long it takes to recover the amount invested in a project from its cumulative cash flows.
There is no set acceptable pay back period. It is usually set at the discretion of firms.
The profitability index is the present value of a projects cash flows divided by the cost of investment.
The decision rule is invest if PI > 1 and don't if its otherwise.
For a project where the initial cash flow is negative and where all subsequent cash flows are positive, the NPV and IRR would agree.
From the question the IRR is less than the required rate of return which means the project shouldn't be embarked on. When the NPV is calculated, the same conclusion should be reached. So, the npv should be less than zero.
I hope my answer helps you
Answer:
A) Roasters delivers the goods to Speedy
Explanation:
Risk of loss under the law of contracts is used to determine which party should bear the burden of risk for damage occurring to goods after the sale has been completed, but before delivery has occurred. This is normally used after the contract is formed but before buyer receives goods, something bad happens.
- The breaching rule applies risk of loss on the seller if at the time of delivery, the goods show up broken.
- Risk of loss shifts from seller to buyer at the time that seller completes its delivery obligations
- For a destination contract, then risk of loss is on the seller
- For a delivery contract, then risk of loss is on the seller
- if the seller is a merchant, then the risk of loss shifts to the buyer upon buyer's "receipt" of the goods. If the buyer never takes possession, then the seller still has the risk of loss
Send it to the IRS before April 15th.
