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Tanzania [10]
3 years ago
11

A project requires an initial investment of $10 million today. If the cost of capital exceeds the project IRR, then the project

must have a(n):
Business
1 answer:
xz_007 [3.2K]3 years ago
3 0

Answer:

Negative NPV.

Explanation:

present value of cost exceeds present value of revenue that is been assumed in the investment plan of the said company/firm.

Net Present Value describes one of the discounted techniques of cash flow used in capital budget to determining the viability of a project or an investment. It is seen to have a huge difference between the present flow of the firms; which is cash inflows and the present value of cash outflows over a period of time. Experts has tagged its primary advantage to be that it is seen to considers the concept of the time value of money.

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At a snack booth, one bottle of sports drink, one banana, and two bags of granola cost $7. 50; two bottles of sports drink, two
Marizza181 [45]

The price of one bag of granola is $2.

<h3>What is an Equation</h3>

An equation is an expression that is used to show the relationship between two or more variables and numbers.

Let x represent the number of sport drink, y for banana drink and z for granola drink, hence:

x + y + 2z = 7.5  (1)

Also:

2x + 2y + 2z = 11  (2)

And:

x + 3z = 8.5    (3)

Hence:

x = 2.5, y = 1 and z = 2

The price of one bag of granola is $2.

Find out more on Equation at: brainly.com/question/1214333

3 0
2 years ago
in the gilded age, how did monopolies affect many small businesses? monopolies helped small businesses grow.
astra-53 [7]

In the Gilded age, monopolies affected the small businesses as the monopolies forced small businesses to shut down. A monopoly arises when a single corporation dominates the market for a given product or service.

Monopolies frequently result in the closure of the smaller businesses. One business can regulate the product prices when it controls a particular market. Due to their size, most the monopolizing businesses can afford to reduce their prices so much that no small business can compete. Because of this, the smaller companies are left with no alternative except to shut down or combine with the monopolizing firm.

To learn more about monopolies, click here

brainly.com/question/10441375

#SPJ4

7 0
1 year ago
What is one of the basic principles of economics?
Andrej [43]
I think it’s Option D

Society and it’s individuals have unlimited wants
8 0
3 years ago
A comprehensive evaluation of the group of businesses a company has diversified into involves: a.evaluating the attractiveness o
MariettaO [177]

Answer:

All of the options

Explanation:

A comprehensive evaluation of the group of businesses a company has diversified into involve:

Evaluating the attractiveness of industries the company has diversified into and the competitive strength  of each of its business units.

Evaluating the strategic fits and resource fits among the various sister businesses.

Ranking the performance prospects of the businesses from best to worst and determining what the  corporate parent's priorities should be in allocating resources to its various businesses.

Using the results of the prior analytical steps as a basis for crafting new strategic moves to improve the  company's overall performance.

5 0
3 years ago
The market value of​ Fords' equity, preferred​ stock, and debt are $ 7 ​billion, $ 2 ​billion, and $ 15 ​billion, respectively.
Stolb23 [73]

Answer:

Ford's weighted average cost of capital is 8.22 %

Explanation:

Weighted Average Cost of Capital (WACC) is the minimum return that the company expect from a project. It shows the risk of the company.

Calculation of WACC

WACC = Cost of equity + Cost of preferred​ stock + Cost of debt

Capital Source       Market Values     Weight      Cost      Total Cost

equity                         $ 7 ​billion          29.17%      13.6%       3.97 %

preferred​ stock         $ 2 ​billion            8.33%      12%          1.00 %

debt                           $ 15 ​billion         62.50%     5.2 %       3.25%

Total                          $ 24 billion                                          8.22 %

Cost of equity = Risk free rate + Beta × Risk Premium

                       =  4% + 1.2 × 8%

                       =  13.6%

Cost of preferred​ stock = Dividend/Market Price

                                       = $ 3/ $ 25 × 100

                                       = 12%

Cost of debt = interest × (1- tax rate)

                    = 8% × (1-0.35)

                    = 5.2 %

7 0
3 years ago
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