Answer:
The answer and procedures of the exercise are attached in the following archives.
Explanation:
Consider this explanation too
The IRR is the project’s expected rate of return, assuming that intermediate cash flows also earn the IRR. If this return exceeds the cost of the capital invested in the project, the excess value goes to the firm’s shareholders. Therefore, independent projects whose IRR is greater than the WACC should be accepted.
Therefore in this case WACC of the project is 7% and IRR of the project is 1.86% which is less than WACC of the project. Hence the firm reject the project delta.
Calculation of IRR is based on Cash inflows and outflows for the number of years so that increase in cost of capital will not affect IRR.
It shows how businesses markets and households all buy and sell from each other to make profit<span />
Answer:
Differentiation strategy
Explanation:
This question defines the differentiation strategy. It is an approach which businesses develop whereby they provide their customers with unique and different goods and services than what other competing firms may have to offer in the market. The main goal is to have an advantage increase in the market compared to others.
The set of all possible sample points [experimental outcomes] is called the sample space.
Direct labor cost is wages that are incurred in order to produce specific goods or provide specific services to customers. The total amount of direct labor cost is much more than wages paid.
Given that 3 workers, working 8 hours in a day are paid $12. The total amount paid to workers are:
12x8x3=$288
The cost of direct labor will therefore be:
450-288
=$192
