Wbs stands for which of the following project management tools

Which assertions about statement 1 and statement 2 is true? Statement 1: 10,000 bonds sold by Echo Corporation were bought by a

Elan Coil [88]

Answer: E. Statement 1 is false and statement 2 is true.

Explanation:

Statement 1 is false because when bonds are sold in the secondary market, the issuing company does not get anything from it. That is because sales in the secondary market are between bond holders and those who would like to buy the bond. For the company to make money from a bond issue, they would have to issue it in the Primary Market where it would come directly from them.

Statement 2 is true because when the coupon rate of a bond is higher than it's YTM, it signals that the bond is a PREMIUM bond which means that it is selling at a rate above Par. It is a measure showing that the bond is not very risky therefore investors charge less on the bond than the coupon rate. If the Coupon rate was lower than the YTM that would mean that investors consider the bond risky and so are charging more to hold it and this would reduce the price of the bond below it's face value.

5 0

3 years ago

Deep Mining and Precious Metals are separate firms that are both considering a silver mining project. Deep Mining is in the actu

posledela

Answer:

B) Precious Metals only

Explanation:

to determine which firm should accept the project, the net present value for each company should be determined. Only firms with a positive NPV should accept the project because a negative NPV indicates that the project would be unprofitable for the firm

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Deep Mining

Cash flow in year 0 = $-950,000

Cash flow each year from year 1 to 12 = $165,000

I = 16.2 percent.

NPV = $-99,553.49

Precious Metals

Cash flow in year 0 = $-950,000

Cash flow each year from year 1 to 12 = $165,000

I = 13.4 percent.

NPV = $9,059.05

Only Precious Metals should accept the project because it has a positive NPV.

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

5 0

3 years ago

Which transactions are typically accounted for by using the relative sales value method to calculate unit purchase cost?

mestny [16]

Answer:

Basket purchases.

Explanation:

Basket purchases is a term used for buying multiple fixed assets. It is bought as the price for basket purchases is lower than the price for individual asset. The transactions in the basket purchases are accounted for by using the relative sales value method to calculate unit purchase cost. It is calculated by dividing each sales value of product by the total sales value of all the product.

4 0

3 years ago

The marginal cost of manufacturing x yards of a certain fabric is C'(x) = 3 − 0.01x + 0.000006x2 (in dollars per yard). Find the

Amiraneli [1.4K]

Answer:

There are 52 dollars increase on marginal cost when production rises

There are 58000 dollars increase on total cost when production rises

Explanation:

Please find attached word file with the calculations.

Download docx

8 0

3 years ago

Silky Inc., which sells custom silk ties designed by famous people, faces a demand curve of Q = 150 – 0.2P, where Q is measured

CaHeK987 [17]

Answer:

The production level that maximizes Silky's profit is $5000$ ties.

Explanation:

Hi

First of all, as we have $Q(P)=150-0.2P$ , we need to transcript it as price in function of the quantity so

$P(Q)=\frac{150-Q}{0.2}=750-5Q$

Then we need to find income function that is $I(Q)=Q*P(Q)=750Q-5Q^{2}$ . After derivate it $I'(Q)=750-10Q$ .

The optimum level is when we have $MC=I'(Q)$ , therefore,

$5Q=750-10Q$ , as we clear it for $Q$ we find that

$Q=\frac{750}{15}=50$ , finally as we have that $Q$ is measured in hundreds of ties, the production level that maximizes Silky's profit is $5000$ ties.

4 0

3 years ago