Answer:
e) Increase the required rate of return used to evaluate the project to reflect the higher risk of the project
Explanation:
As per the basic concept of investment, "higher the risk, higher the return".
Thus, an investor assumes a higher risk only in the scenario wherein the expected return would be commensurate with such risk. Investor would only invest in a risky asset when the return derived can compensate him for the excess risk assumed.
Required rate of return is an investors expectation of return from a project also referred to as the cost of capital.
So for the purpose of evaluating the project, the investor should use a higher required rate of return to signify higher risk which would reveal the true viability of the project.
Answer:
d. 42.90 hours
Explanation:
y = aQᵇ
y = average time to produce one more unit
a = the time it took to produce the first unit
Q = cumulative production
b = learning rate = [(log learning rate in %) / log 2] = -0.152003093
learning rate in % = 10.8 / 12 = 0.9 = 90%
cumulative quantity average hours per unit total hours
1 12 12
2 10.8 22.8
3 10.38 33.18
4 12 x 4⁻⁰°¹⁵²⁰⁰³⁰⁹³ = 9.72 42.90
Answer:
Project Closing Phase, is the correct answer.
Explanation:
It is the last phase in the project cycle. In this phase the project is closed and report of success is given to the sponsor. The deliverable are handed to the the customer, documentation is handed to the business, equipment and staff are released and stakeholders are informed about the closure of he project. Once the project has been closed and post implementation review is done for determining the success and identifying the lessons learned
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The correct answer would have to be true :)
