Answer:
B) Project B has below-average risk and an IRR = 8.5 percent.
Explanation:
Since the evaluation is based on IRR, use IRR rule that says you accept a project if its IRR > Cost of capital(WACC in this case)
Project A's IRR of 9% is < 10% WACC for average risk projects hence reject it.
Project B's IRR of 8.5% is > 8% WACC for below- average risk projects hence accept it.
Project C's IRR of 11% is < 12% WACC for above- average risk projects hence reject it.
Probability assigned:|
x 30 60 120 180
P(x) .10 .40 .40 .10
Answer:
Jane
Price of Groupon for a revenue of $300 is:
$3
Explanation:
a) Data and Calculations:
Expected Sales volume:
Number of Tubes x 30 60 120 180
Probability P(x) .10 .40 .40 .10
Expected values 3 24 48 18
Total = 93 tubes
Groupon price = $300/93 = $3.23
b) Jane's price for each Groupon will be the rent revenue per day divided by the expected number of tubes to rent daily. The expected number of tubes is derived by multiplying each expected number of tubes by its probability and then summing up the results.
It's called a inflamtion, when basict when the economy gets really strong ,we have a hard time keeping up with demand and need to make the economy more weaker to balance things out
Answer:
d.All of these choices would reduce risk for your portfolio and therefore show at least some benefit to diversification
Explanation:
Which of the following securities could NOT have any benefits for diversification with your investment portfolio? All of these choices would reduce risk for your portfolio and therefore show at least some benefit to diversification
Answer:
A Tying Contract
Explanation:
If a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy, it results in a tying contract. It is mostly treated as an illegal because it pushes intermediary organization to buy other products if they wishes to purchase the products which is actually needed to be purchased. Some companies make it compulsory for their intermediaries in doing so. For example, if you have to buy 10 packs of Lays, then you must be buying 5 extra boxes of Pepsi as well. It is being done because of the power and market share that company is enjoying in the market, so they take its advantage.
