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vampirchik [111]
3 years ago
13

A company's weighted average cost of capital:_______.

Business
1 answer:
Lemur [1.5K]3 years ago
4 0

Answer:

The correct answer is D. Is the return investors require on the total assets of the firm.

Explanation:

The Weighted Average Capital Cost (WACC) is a financial measure, which has the purpose of encompassing in a single figure expressed in percentage terms, the cost of the different sources of financing that a company will use to fund a specific project.

To calculate the WACC, it is necessary to know the amounts, interest rates and tax effects of each of the selected sources of financing, so it is worth taking the time to analyze different combinations of these sources and take the one that provides the lower figure .

Comparatively, without going into the detail of the project evaluation, "the WACC must be less than the profitability of the project to be funded" or expressed in another order, "the project performance must be greater than the WACC."

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What challenges do immigrants face when arriving in the united states?
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Sunland Company accumulates the following data concerning a proposed capital investment: cash cost $208,780, net annual cash flo
siniylev [52]

The net present value is 12,100. The investment should be made because NPV is positive

The present value of an investment's after-tax cash flows is known as the investment's net present value.

Businesses can make decisions using the NPV technique. It aids in not only comparing projects of the same size but also in determining whether a given investment is profitable or not.

While the net present value has advantages such as taking time worth of money into an account and assisting management in making better decisions, it also has drawbacks such as not taking hidden costs into account and being unable to be utilized by the company to compare projects of various sizes.

NPV =( Net annual cash flows x present value factor)  - cost

NPV =  (44,000 x 5,02 ) - $208,780 = 12,100

To know more about net present value refer to:  brainly.com/question/17162144

#SPJ1

3 0
2 years ago
You have just won the Strayer Lottery jackpot of $11,000,000. You will be paid in 26 equal annual installments beginning immedia
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Therefore, the present value will be more if the amount is invested.
6 0
3 years ago
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