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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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Rather than generating tax revenue as do tariffs, subsidies require tax revenue. Therefore, they are not an effective protective
KatRina [158]

Yes. Subsidies are benefits that the government can grant to institutions, households and businesses to promote economic efficiency and reduce market failures. They may be distributed through cash or by cutting tax rates. However, there is controversy about the effectiveness of using subsidies for the economy, often related to the inefficiency of promoting a free market, allocating resources that could be used for investment in productive resources and masking the results of economic efficiency. Another major concern with the use of subsidies is the formation of political alliances of those who receive them and those who provide them, creating political interests because of their use.

6 0
3 years ago
Kim's Bridal Shoppe has 12,200 shares of common stock outstanding at a price of $56 per share. It also has 315 shares of preferr
blagie [28]

Answer:

Total weight is calculated as follows:

Common stock (12,200 x $56) = 683,200

Preferred stock (315 x $90)      = 28,350

Bond (380 x $2,240)                 =  851,200

Total market value                       1,562,750

The capital structure weight of common stock = 683,200/1.562,750 x 100

                                                                             = 43.72%

Explanation:

In this case, we need to determine the total market value of the company and then divide the market value of common stock by the market value of the company.

3 0
3 years ago
Ready Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three co
Ivenika [448]

Answer:

$0.89 per piece

$0.75 per miles

$22 per hour

Explanation:

The computation of the activity-based overhead rates for each pool is shown below:

Activity-based overhead rate = Estimated Overhead ÷  Estimated Use of Cost Driver per Activity

For Loading and unloading, it would be

= $79,200 ÷ 88,100 = $0.89 per piece

For Travel miles driven, it would be

= $441,750 ÷ 589,000 = $0.75 per miles

For logistic hours, it would be

= $62,040 ÷ 2,820 = $22 per hour

7 0
3 years ago
3. Which of the following is a liability?
Paraphin [41]

Answer:

buildings

Explanation:

Because if you own buildings you have to take care of them and you make sure you have them clean make sure nothing is wrong if a person complains find the problem and make it better and a loan will put you in a lot of debt to that person instead of making your own money.

6 0
3 years ago
Who has done a Hopkinsville High school resume template before?
Snowcat [4.5K]
I have not used a hopkinsville high school resume template before.
8 0
3 years ago
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