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2 years ago

Midwest Water Works estimates that its WACC is 10.5%. The company is considering the following capital budgeting projects:

Business

1 answer:

krok68 [10]2 years ago

7 0

Answer:

Projects A,B,C,D and E should be accepted

Explanation:

Based on the fact that each of the itemized projects has the same of level of risk as the company's existing assets, we suggest that the firm undertake those projects that gives a return rate which is above the current weighted average cost of capital of 10.5%

In essence,projects A,B,C,D and E should be accepted as they 12%,11.5%,11.2%,11% and 10.7% returns on investment respectively.

Projects F& G would be rejected on the premise that their rates of return are lower than what is currently obtainable in Midwest Water Works.

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2 years ago

An investment has the following payment structure: 1,000 payable in one year, 1,000 payable in two years, and 1,000 payable in t

Shtirlitz [24]

Answer: C. 7.3%

Explanation:

The yield rate is a weighted average of the yields over the years:

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3 years ago

An indifference curve illustrates ... a) how consumers are indifferent about the location of their own consumption levels relati

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Answer:

Option c) how a consumer might trade off different levels of consumption of each of two goods, while staying at the same utility level.

Explanation:

This is the very definition of an indifference curve. The points in an indifference curve are the combinations of the quantities (level of consumption) of two different goods which will produce the very same utility to the consumer. The consumer will perceive any of those combinations as having the same utility for him.

For example, a usual graph of various indifference curves will look like the graph attached.

In this graph the combination of 2 pairs of shoes and 15 pants will be perceived as having the same utility as the combination of 5 pairs of shoes and 4 pants. Both are combinations in the same indifference curve, the green one, and the utility of any combination lying in that green curve will be rated the same: u = 1.

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3 years ago

Graph shows values along the horizontal axis and vertical axis. Coordinates are plotted to indicate two upward-sloping diagonal

algol13

The answer to this question will be A

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3 years ago

International Food Services (IFS) has a contract with the Marines to supply meals for its troops in Afghanistan and other foreig

andrezito [222]

Answer:

C, the board of directors of IFS

Explanation:

The board of the IFS is ultimately responsible for the corporate climate that resulted in the use of substandard ingredients in the meals meant for the troops.

This is because the directors are the ones at the helm of affairs and they decide what happens in the IFS. This means that at least one of the directors is aware of the use of substandard ingredients . It can be said that if one knows, all other know. This phrase convieniently indicts the directors.

Cheers.

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2 years ago