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ch4aika [34]
4 years ago
7

A bakery company is considering one capital budgeting project involving the replacement of a sophisticated brick​ oven, and anot

her capital budgeting project involving research and development into synthetic food substitutes. Which of the following statements is MOST correct concerning the riskminusadjusted discount​ rate(s) for the​ projects?
A. The rate should be the same for both projects because they are being considered by one company with the same common shareholders.
B. The rate should be higher for the replacement project because the company is more certain of the returns from a project similar to their existing business.
C. The rate will likely be higher for the replacement project because the likelihood of success is higher.
D. The rate will likely be higher for the research and development project because of the uncertainty involved with research and development projects.
Business
1 answer:
inna [77]4 years ago
3 0

Answer:

D. The rate will likely be higher for the research and development project because of the uncertainty involved with research and development projects.

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The government's involvement in the society reach its pinnacle when Ronald Reagan became the president of the United States.  Reagan stated that the U.S government had become too much powerful to the point that it cannot be controlled.  He suggested to back it off before it will try to control the lives of the people.
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Which information is found on a credit report?
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Answer:

D: Credit account history

Explanation:

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an investor in able inc. would like to understand able's availability of resources to pay its short-term cash requirements. this
defon

A type of analysis to understand Able's availability of resources to pay its short-term cash requirements is known as a liquidity measure.

<h3>What is liquidity?</h3>

Liquidity can be defined as the rate at which an asset or resource such as physical equipment, can be used to purchase any goods or services. This ultimately implies that, liquidity is a characteristics (quality) of money as a medium of exchange around the world.

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4 0
2 years ago
increases in government spending are not very effective in offsetting real shocks because they shift the:
yulyashka [42]

Increases in government spending are not very effective in offsetting real shocks because they shift the aggregate demand.

<h2>Definition of Aggregate Demand</h2>

Aggregate demand is the value of all requests for all types of goods and services produced in a certain period. The demand value contained in this aggregate will be expressed in terms of the overall value used for these goods and services up to a more specific price level and at a certain time period.

Some things that include aggregate demand are all consumer goods, capital goods used for the production process, import-export activities, and state government spending programs. Each of these variables will be considered the same as long as they are traded at the same market value.

This aggregate demand can also be calculated over a long period of time, which is often referred to as GDP or Gross Domestic demand. If this GDP will describe the total value and also the goods produced, then aggregate demand will represent the desire for goods and services.

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5 0
1 year ago
Company Q owns controlling shares of stock in companies A, B, C, and D. This is an example of a Pool Partnership Holding Company
MaRussiya [10]

Answer:

Holding

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When a company or a share holder owns a share which is more than 50 percent share of the company in the market, than than individual or company has a controlling shares in the company.

This gives him the right of deciding the in the meetings of the shareholders and to take control of the company's direction.

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