1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sweet-ann [11.9K]
3 years ago
15

Projects S and L both have normal cash flows, and the projects have the same risk, hence both are evaluated with the same WACC,

10%. However, S has a higher IRR than L. Which of the following statements is CORRECT?
A. Project S must have a higher NPV than Project L.
B. If Project S has a positive NPV, Project L must also have a positive NPV.
C. If the WACC falls, each project's IRR will increase.
D. If the WACC increases, each project's IRR will decrease.
E. If Projects S and L have the same NPV at the current WACC, 10%, then Project L, the one with the lower IRR, would have a higher NPV if the WACC used to evaluate the projects declined.
Business
1 answer:
kirill115 [55]3 years ago
6 0

Answer:

E. If Projects S and L have the same NPV at the current WACC, 10%, then Project L, the one with the lower IRR, would have a higher NPV if the WACC used to evaluate the projects declined.

Explanation:

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

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

You might be interested in
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company
djverab [1.8K]

Answer:

Cash flow amount = $17.52 million.

Explanation:

Cash flow amount = $4.8m of land + $12 m of building + $720k of grading = $17.52 million.

5 0
3 years ago
Read 2 more answers
The ________ is a form of business organization that is rapidly gaining popularity in the United States. The concept originated
zvonat [6]

Answer:

Limited liability company

Explanation:

A limited liability company (LLC) is an hybrid entity United States in which the characteristics of corporations and partnerships are combines. In this strategy owners are not personally liable for the firm's debts.

I hope you find this information useful and interesting! Good luck!

6 0
3 years ago
Suppose an Exxon Corporation bond will pay $4,500 ten years from now. If the going interest rate on safe 10-year bonds is 4.25%,
Luda [366]

Answer:

The answer is a. $2,967.92

Explanation:

Calculation of prent value

Present value = p* (1+i)^-10

Present value = $4,500 * (1+0.0425)^-10= <u>$2,967.92</u>

4 0
3 years ago
Of the types of U.S. compliance laws, there are a number of laws that are designed to provide confidence in the markets. _______
Gala2k [10]

Answer:

The correct word for the blank space is: Shareholders.

Explanation:

A Shareholder is a person company or other entity that owns at least one share of company stock. Another word for <em>shareholder </em>is <em>stockholder</em>. When a shareholder buys a company stock provide them with funds to run and grow a business. The government is in charge of providing regulations to promote a safe environment in the market to promote investments from stockholders.

5 0
3 years ago
PLEASE HELP!
ycow [4]

Answer:

Identify with Your Goals, Build a Professional Resume, Become Aware of Your Strengths, Assume Full Responsibility for Your Life, Always Raise Your Standards, Brand Yourself, and Network

Explanation:

6 0
3 years ago
Other questions:
  • The manager of a chain of fast-food restaurants has noticed that the number of breakfast customers has fallen by 50 percent in t
    12·1 answer
  • Nlg gers number yes 34 to yes
    13·1 answer
  • you are billed $300 at 5% simple interest for 2 years but given an opportunity to pay only 3% compound interest for 2 years. Whi
    8·1 answer
  • Meir, Benson and Lau are partners and share income and loss in a 3:2:5 ratio. The partnership's capital balances are as follows:
    6·1 answer
  • The Administrator of the state of Wisconsin has designated the Investment Adviser Registration Depository (IARD) as the approved
    9·1 answer
  • Suppose ABC Dairy is one firm competing in the perfectly competitive market for milk. Now suppose ABC Dairy decides to produce o
    9·1 answer
  • In the trial balance, all the accounts with debit balances are listed before the accounts with credit balances.
    6·1 answer
  • Diferencia entre organizacion, empresa y emprendimiento
    11·1 answer
  • An injunction that requires a defendant to take an action or set of actions is
    5·2 answers
  • What is the most common method of measuring flows of trade?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!