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Varvara68 [4.7K]
3 years ago
10

The IRR rule states that firms should accept any project offering an internal rate of return in excess of the cost of capitalA.

TrueB. False
Business
1 answer:
gtnhenbr [62]3 years ago
6 0

Answer:

A. True

Explanation:

Internal rate of return abbreviated as  IRR, is a capital budgeting technique used to evaluate the profitability of a potential project or an investment. In calculating the IRR,  the net present value of the project's cash inflows is set at zero.  Getting the actual value of the IRR is through trial and error, or specially programmed software.

IRR shows the growth rate a project or an investment is expected to generate. The higher the value, the better. As a rule, only projects whose IRR is greater than the minimum required rate of return should be accepted. The required rate of return is the same as the cost of capital for the project.

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When the price of hot dogs is $1.50 each, 500 hot dogs are sold every day. After the price falls to $1.35 each, 510 hot dogs are
Mkey [24]

Answer:

The correct answer is -0.2.

Explanation:

According to the scenario, the given data are as follows:

When rate = $1.50

Hot dogs sold at $1.50 = 500 units

And When rate = $1.35

Hot dogs sold at $1.35 = 510 units

So, we can calculate the price elasticity by using following formula:

Price elasticity = (%change in quantity ) ÷ ( %change in price )

Where, %change in quantity = (( 510 - 500 ) × 100) ÷ 500

=  1,000 ÷ 500

= 2

and %change in price = ((1.35 - 1.50 ) × 100) ÷ 1.50

= (-10)

So, by putting the value:

Price elasticity = 2 ÷ (-10)

= -0.2

Hence, the price elasticity of demand for hot dogs is -0.2.

8 0
3 years ago
The annual percentage rate on a credit card determines
Digiron [165]
My answer -

it determines how much they charge you in interest if you carry a balance. Lower is better. The percentage interest is what they charge you each month, “annual percentage rate” is what you’re paying if you keep that balance for a year. It’s slightly different because in that year, you’re also paying interest on the amount of interest (compound interest) you owe in the previous months.

Not carrying a balance means that you don’t pay interest.


p.s

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6 0
3 years ago
The sale or transfer of goods ordinarily held for sale in course of business is goverend by the?
GenaCL600 [577]

The sale or transfer of goods ordinarily held for sale in course of business is governed by the  Uniform Commercial Code.

Whilst a shop lowers its charges via a sale, though, customers are more willing to buy due to the fact they recognize they're now not set as a whole lot of money on the line. extra often than not, customers who like the stuff they buy on sale will turn out to be coming lower back to shop for it once more, despite the fact that it's not priced at a reduction.

The important thing for a retailer is the gross income margin: the percentage of revenue left over from the sale of a product after subtracting the fee of that product – which includes the production, transport, packaging, and different work that goes into it.

A clearance is a unique sort of sale that could appeal to extra customers than traditional sales. this is due to the shop seeking to take away positive items for one cause or any other. the store is probably going out of business, the objects are going out of season, or there is not sufficient room in the shop for new gadgets.

Learn more about the sale here brainly.com/question/25586322

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7 0
1 year ago
Why does a country need to have a comparative advantage in a particular product in order to engage in trade with another country
harkovskaia [24]

Answer:

Countries have a comparative advantage in production when they can produce a good or service at a lower opportunity cost than other producers.

5 0
2 years ago
When Carolina is in the grocery store buying milk for her children, she picks up a tube of toothpaste at the same time. The toot
yKpoI14uk [10]

A relatively inexpensive item that merits little shopping effort, is called Convenience product.

<h3>What is the Product?</h3><h3></h3>

Product refers to the finished goods or the material that has been converted from the raw material to fulfill the needs of the customer. There are four types of product i.e. convenience goods, shopping goods, specialty products, and unsought goods.

Convenience product is that type of the product which can be purchased with the minimal efforts because it is cheap in value and can be purchased frequently.

In the above case, Carolina picks up the toothpaste which is the example of the Convenience product.

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7 0
2 years ago
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