Answer:
The correct answer is letter "A": the discount rate that makes the net present value of a project equal to the initial cash.
Explanation:
The Internal Return Rate, or IRR, is a central component of corporate finance capital budgeting. Companies use it to determine which discount rate will make the Present Value of the after tax cash flows equal to zero (0). Any project that returns an IRR greater than 0 ads has a value.
<em>In the decision-making process, IRR is subordinated to Net Present Value because it is preferred an absolute dollar amount that is higher than a higher IRR.</em>
Answer:
b. Production
Explanation:
Global Value Chains have been successful over the years due to most components being produced in the country where<em> it is cheaper to do so</em> and then the final output<em> is integrated in other country</em>.
Thus globalization of production has enabled <em>firms</em> to take advantage of national differences in the cost and quality of factors of production.
Answer:
10.45%
Explanation:
Calculation to determine the cost of debt
B/S = 1.57 − 1
B/S = .57
.156 = .14 + .57(1 −.21)(.14 − RB)
.156 = .14 + .57(.79)(.14 − RB)
RB = .1045*100
RB= 10.45%
Therefore the cost of debt is 10.45%
Answer:
The overhead for the year was $130,075
Explanation:
GIVEN INFORMATION -
ESTIMATED ACTUAL
Manufacturing overhead $132,440 $128,600
Machine hours 2800 2750
Here for calculating the overhead for the year we will use the following formula =
\frac{Estimated Manufacturing Overhead}{Estiamted Machine Hours}\times Actual Machine Hours
= \frac{\$132,440}{2800}\times 2750
\$47.3\times 2750 = \$130,075
Therefore the overhead for the year was $130,075