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qaws [65]
3 years ago
13

AB When considering two mutually exclusive projects, the firm should always select the project whose internal rate of return is

the highest, provided the projects have the same initial cost. This statement is true regardless of whether the projects can be repeated or not.
Business
2 answers:
Mnenie [13.5K]3 years ago
3 0

Answer:

False

Explanation:

If an investment project can be repeated, i.e. its life cycle can be extended by reinvesting, the NPV of the project will change.

When considering two mutually exclusive projects, the NPV method should always be considered before the IRR as a means of evaluating which project should be carried out.

Elina [12.6K]3 years ago
3 0

Answer: The statement is false,since the NPV will definitely change with time or when repeated.

Explanation: NPV(net present value): this refers to the cash flow at different times,it is usually expressed in monetary values such as in dollar whose value may not be stable,hence the possibility of change that may not be favorable.

IRR(internal rate of return); this is expressed in percentage and it used as a measurement of cash flows when executing projects. This metric does not give details in actual monetary terms. So it is better to consider using the NPV as the priority.

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Flexible Budgeting At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depr
andriy [413]

Answer:

$11,000

Explanation:

Fabricating Department budgeted direct labor = $9,280

Depreciation remains constant at any level of production.

Budgeted labor rate = Budgeted direct labor ÷ Hours of production

                                  = $9,280 ÷ 640

                                  = $14.5 per hour

Direct labor cost = completed hours of production × Budgeted labor rate

                            = 600 × $14.5

                            = $8,700

Budget for the Fabricating Department at 600 hours of production:

Budgeted cost = Direct labor cost + Equipment depreciation

                         = $8,700 + $2,300

                         = $11,000

4 0
3 years ago
The purpose of a financial intermediary is to help channel funds
Triss [41]

Answer:

a. from one banks to another

Explanation:

3 0
3 years ago
A company is trying to decide between two independent projects. Each project has a cost of capital of 12%. Project A has an IRR
Rina8888 [55]

Answer:

Neither project should be chosen

Explanation:

Given that

Each project cost of capital is 12%

The IRR of project A is 11.4%

And, the IRR of project B is 11.1%

As we can see that the cost of capital of each project with their internal rate of return so no project should be selected

Therefore the above statement represent an answer

The same should be relevant

6 0
3 years ago
Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the A. supply of
prohojiy [21]

Answer:

<em>B. demand for Apple computers decreases.</em>

Explanation:

If two things are substitute of each and other, that generally in simple words means either this or this. As we can see in the statements that has been provided in the question that Dell and Apple computers are substitute of each other, <em>so if the amount from Dell computer decreases then the demand of the computers made by Apple company will absolutely decrease. </em>

Because two devices which carries almost same qualities and features are also substitute of each other, i<em>f price of one device from the both substitutes will decrease, everyone will rush to buy the device with low price and the device with high price will get less popular among the consumers.</em> So, this is the reason which says OPTION(B) is the correct answer.

7 0
2 years ago
Which of the following executive roles is responsible for overall priority setting, project selection and prioritization, genera
SVETLANKA909090 [29]

Answer:

Letter a is correct. <u>Steering team.</u>

Explanation:

Steering team  in a project correspond to the highest hierarchy of a project, which is responsible for the decision-making process, and is composed of all representatives involved in the project, the directors, specialists and units of the company, who will join efforts to assist with methodological and technical advantages for the project to proceed as planned.

The main function of the steering teams is to monitor the project, in order to control the steps in order to carry out the project, establish the budget, support the managers, set objectives, allocate necessary resources, etc.

6 0
3 years ago
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