Answer:
D. Cost-benefit analysis
Explanation:
Cost-benefit analysis can be defined as a strategic approach which typically involves measuring and estimating the overall cost of a project, as well as all possible profits to be derived.
This ultimately implies that, the cost-benefit analysis helps business owners or project managers to weigh the benefits associated with a particular project and how to decide on what decisions (actions) to be taken.
Hence, if the government decides to build a new highway, the first step would be to conduct a study to determine the value of the project. Therefore, this study is generally referred to as cost-benefit analysis because involves weighing the incremental benefit against the incremental cost of a decision.
In conclusion, when individuals such as decision-makers or project manager, is implementing and executing a project, it is very essential and important that he does a cost-benefit analysis; by weighing the overall and potential benefits or gains to be derived from that project in comparison with the costs of execution. Thus, when the incremental benefits is greater than the incremental cost of the decision, then it is logical and safe to make the move or do it.
Answer:
c. 9.21%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
For stock A
12% = 4.75% + 1.30 × market risk premium
12% - 4.75% = 1.30 × market risk premium
7.25% = 1.30 × market risk premium
So, the market risk premium = 5.58%
For Stock B, required rate of return would be
= 4.75% + 0.80 × 5.58%
= 4.75% + 4.464%
= 9.214%
Answer:
The fund raising committee can be organized in 3,276 different ways.
Explanation:
The committee can have the following structures:
Accounting majors Finance majors
0 5
1 4
2 3
C(10,0) x C(8,5) = (10! / 10!) x (8! / 3!5!) = 1 x 56 = 56
C(10,1) x C(8,4) = (10! / 9!1!) x (8! / 4!4!) = 10 x 70 = 700
C(10,2) x C(8,3) = (10! / 8!2!) x (8! / 5!3!) = 45 x 56 = 2,520
total possibilities = 2,520 + 700 + 56 = 3,276
Answer:
Peridot should report net cash outflows from investing activities of: $46 million
Explanation:
Peridot Corporation
Statement of cash flows (extract)
$ in millions
Purchase of machinery ($36)
Proceeds from sale of land 70
Cash paid to acquire office equipment (80)
Net cash flows from investing activities ($46)
Note that reacquired common stock belongs to financing activities section of the cash flows, while gain from sale of land and investment revenue belong to operating activities section of the cash flows
Answer:
Dam... u better do something about that! Shi, I would
Explanation:
