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Degger [83]
3 years ago
15

You were recently hired by a firm as a project analyst. The owner of the firm is unfamiliar with financial analysis and wants to

know only what the expected dollar return is per dollar spent on a given project. Which financial method of analysis will provide the information that the owner requests?
(A) Internal rate of return
(B) Modified internal rate of return
(C) Net present value
(D) Profitability index
(E) Payback
Business
1 answer:
zalisa [80]3 years ago
3 0

Answer: <u><em>Profitability index</em></u> is the financial method of analysis which will provide the information that the owner requests

This is an assessment technique inflicted to possible outlays. This splits the proposed capital flow by the planned capital outflow to find out the profitability of a project

<u><em>Therefore the correct option is (d).</em></u>

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Conducting a(n) __________ of the disaster recovery documentation for accuracy should be a standard practice for the organizatio
erica [24]

Answer:

Revision/Review

Explanation:

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4 0
3 years ago
Cromwell's Interiors is considering a project that is equally as risky as the firm's current operations. The firm has a cost of
mario62 [17]

Answer:

Cost of capital = 12.40%

Explanation:

given data

cost of equity = 15.4 percent

pretax cost of debt = 8.9 percent

debt-equity ratio = 0.46

tax rate = 34 percent

to find out

What is the cost of capital for this project

solution

first we get Equity multiplier that is express as

Equity multiplier = 1 + debt-equity ratio  ..................1

put here value

Equity multiplier = 1 + 0.46

Equity multiplier = 1.46

and

Weight of equity will be

Weight of equity = \frac{1}{Equity\ multiplier}    ....................2

put here value

Weight of equity = \frac{1}{1.46}

Weight of equity =  0.6849

and

Weight of Debt will be here

Weight of Debt = 1 -  weight of equity    ...........................3

put here value

Weight of Debt =  1 - 0.6849

Weight of Debt =   0.3151

so

Cost of capital will be here as

Cost of capital = Weight of Debt  × pretax cost of debt ×  (1- tax rate )  + cost of equity ×  Weight of equity    .....................4

put here value we get    

Cost of capital = 0.3151 × 8.9% × (1 - 0.34) + 15.4% × 0.6849

Cost of capital = 12.40%

7 0
3 years ago
What is a distribution channel?
Ilya [14]

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Medium of communication

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5 0
4 years ago
When Rosalyn comes into the office, she speaks to no one, shuts her door, and is rarely seen again until lunch. She supervises a
nika2105 [10]

Answer:

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Upward communication helps employees to express their requirements, ideas, and feelings. For the top management, upward communication is an important source of information for business decisions. It helps in alerting top management about the requirement of changes in an organisations.

6 0
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