1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pochemuha
3 years ago
9

5. Risk analysis in capital budgeting Projects differ in risk, and risk analysis is a critical component of the capital budgetin

g process. Consider the case of United Recycling Inc.: United Recycling Inc. is one of the largest recyclers of glass and paper products in the United States. The company is looking into expanding into the cardboard recycling business. The company’s CFO has performed a detailed analysis of the proposed expansion. The selling price of recycled cardboard can fluctuate dramatically, depending on the market conditions. By creating models that used different assumptions for the selling price of recycled cardboard but keeping all other inputs in the model the same, the CFO demonstrated the effect of fluctuations in the price of recycled cardboard. Based on the information given, determine which of the statements is correct. The company’s CFO was conducting a sensitivity analysis on the project’s financial model. The company’s CFO performed a scenario analysis on the project’s financial model. Evaluating risk is an important part of the capital budgeting process. Which of the following is measured by its effect on the firm’s beta coefficient? Risk-adjusted cost of capital Market, or beta, risk Corporate, or within-firm, risk Stand-alone risk When dealing with , diversification is totally ignored.
Business
1 answer:
stira [4]3 years ago
5 0

Answer:

A. Market, or beta, risk

Explanation:

i.e when the CFO adjusts the cost per ton of processing the cardboard, the project’s NPV will decrease.

Solution 2 :- The correct answer is (B) I.e Corporate or with in firm risk

a project's risk to the corporation as opposed to its investors

Solution 3 :- Stand alone risk

Stand alone risk is measured by the variability of the project's expected returns - diversification is totally ignored

You might be interested in
Identify the landlord’s responsibilities and the renter’s responsibilities in a home rental agreement. working appliances basic
stiks02 [169]

Answer:

landlord´s responsibilities:

  • working appliances: repair or replace broken appliances, unless tenant is responsible because they didn't use them properly
  • removal of bedbugs: the owner must provide warranty of habitability, so any type of bedbugs, or other insect or animal infestation should be eliminated.  
  • fixing locks and windows: repair or replace broken locks or windows, unless tenant is responsible because they didn't use them properly

tenant's responsibilities: (besides paying the rent)

  • working appliances: the tenant must operate appliances in a reasonable manner
  • basic housecleaning: the tenant is responsible for keeping the house clean and removing garbage
  • fixing locks and windows: the tenant must use them in a reasonable manner

8 0
3 years ago
Read 2 more answers
Explain the technique of making bamboo based handicrafts with an example.​
Gala2k [10]

Answer:

Bamboo can be processed into thin strips or sheet materials for bamboo plaiting , commonly known as bamboo strips. The processing procedures of bamboo strips include selecting materials , sawing bamboo, pruning, scraping, dividing, splitting, setting the width, thinning and chamfering.

Explanation:

Example: •Bamboo furniture

•Bamboo toys

•Bamboo wind chimes

•Bamboo lamps and lanterns

•Bamboo placements and coasters

6 0
3 years ago
One of the reasons the corporation was valued above other forms of business ownership was that ______.
Elina [12.6K]

A corporation may be valued above other forms of business ownership by the fact that large amounts of capital could be raised by selling stock in the corporation.

<h3 /><h3>Advantages of selling stock</h3>

When a company decides to sell its shares on the market, it guarantees the raising of short-term capital that helps in its growth and expansion strategy, since there is an inflow of funds from the market.

Therefore, through the stock market, a company can satisfy its financial needs by attracting additional investors, avoiding debt and sharing the responsibilities of the business.

Find out more information about stock market here:

brainly.com/question/25821437

5 0
2 years ago
What can a manager improve by utilizing the information captured in recent incident reports?
gladu [14]

I believe the answer is: house policies

House policies refers to the set of principles that the managers implemented as a basis for the strategies that they would make in the future.

Recent incident reports would usually filled with information regarding the productivity and defects of the plan that currently carried out. from this, the managers could formulate the necessary adjustments which ensure that the organization is still on track.

4 0
3 years ago
On June 30, 2017, BobCat Inc. total current assets were $510,000 and its total current liabilities were $250,000. On July 1, 201
andriy [413]

Answer:

Increase.

Explanation:

Given that,

Total current assets = $510,000

Total current liabilities = $250,000

Current ratio before paying short term note:

= Total current assets ÷ Total current liabilities

= $510,000 ÷ $250,000

= 2.04

On July 1, 2017: Payment of short term note with cash = $60,000

This payment of short term note reduces the total current assets in terms of cash reduction and also reduces the total current liabilities in terms of short term liability.

New total current assets:

= $510,000 - $60,000

= $450,000

New current liability:

= $250,000 - $60,000

= $190,000

Current ratio:

= New Total current assets ÷ New Total current liabilities

= $450,000 ÷ $190,000

= 2.37

Therefore, the current ratio of this firm increases from 2.04 to 2.37.

4 0
3 years ago
Other questions:
  • Suppose that all banks keep only the minimum reserves required by law and that there are no currency drains. The legal reserve r
    14·1 answer
  • Identify the source of information used in the given scenario.
    13·1 answer
  • The biggest perk or benefit you will receive for donating to a charitable organization is:
    9·1 answer
  • After being referred by a friend, Hasina attended a job interview. She didn't feel it went well, but she was surprised when her
    6·1 answer
  • Central Supply purchased a new printer for $45,000. The printer is expected to operate for nine (9) years, after which it will b
    7·1 answer
  • During a drought in the southeastern United States, marketing campaigns were implemented to encourage consumers to use less wate
    7·1 answer
  • After several quarters of a severe recession, explain why there might be a decrease in the official unemployment rate. Businesse
    10·1 answer
  • Wally's Party Warehouse provides wholesale party equipment and materials to Party Shops. In 2019, Wally's Party sold 30 bounce h
    13·1 answer
  • Name four sources of grants for new and existing Irish firms or any firm
    14·1 answer
  • If the government has no debt initially, but then has annual revenues of $20 billion per year for 4 years and annual expenditure
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!