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bogdanovich [222]
3 years ago
12

Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow f

ollowed by a series of inflows.a. A project's regular IRR is found by compounding the cash inflows at the WACC to find the terminal value (TV), then discounting this TV at the WACC.b. A project's regular IRR is found by discounting the cash inflows at the WACC to find the present value (PV), then compounding this PV to find the IRR.c. If a project's IRR is greater than the WACC, then its NPV must be negative. d. To find a project's IRR, we must solve for the discount rate that causes the PV of the inflows to equal the PV of the project's costs.e. To find a project's IRR, we must find a discount rate that is equal to the WACC.
Business
1 answer:
grandymaker [24]3 years ago
6 0

Answer:

d. To find a project's IRR, we must solve for the discount rate that causes the PV of the inflows to equal the PV of the project's costs

Explanation:

The internal rate of return, will be the rate at which the net present value of a project is zero.

net present value = present value fo the cash inflow - investment

using the IRR on the cash inflow we have a present value equal to the investment made, which makes the net present value equal to zero.

Therefore, the IRR is the maximun rate the project can yield

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Harry has a new sports car that is insured with an Insurance Services Office, Inc. (ISO) Personal Auto Policy sold through his n
labwork [276]

Answer:

An insurance contract, like the ISO policy Harry purchased, has certain additional characteristics other than those of typical valid contracts.

Explanation:

Which one of the following is true for Harry?

Select one

A. An insurance contract, like the ISO policy Harry purchased, has certain additional characteristics other than those of typical valid contracts.

B. Harry understands his policy is modular one, combining various coverage forms and other documents especially tailored to his needs.

C. Harry can rest assured that if his new car is a total loss, he can expect to make a profit while being restored to his pre-loss financial position

D. As the policy is a contract of utmost good faith, both his insurer and his agent are the parties expected to be ethical in their dealings with one another.

7 0
3 years ago
Navel County Choppers, Inc., is experiencing rapid growth. The company expects dividends to grow at 22 percent per year for the
Thepotemich [5.8K]

Answer:

Stock price is $68.65

Explanation:

The following image shows the stock price:

4 0
3 years ago
Consider the market for loanable funds. Suppose that savers make deposits in savings accounts at banks. Initially, the interest
tiny-mole [99]

Answer:

A: The supply of loanable funds curve

B: left

C: Increase

Explanation:

If the tax rate on interest earned on savings deposits rises to 25% then the <u><em>supply of loanable funds curve</em></u> will shift to the <u><em>left </em></u>causing the equilibrium interest rate to <u><em>slide upwards (or increase). </em></u>

The supply curve for loanable funds slopes upwards from left to right. This means that when interest rates are high, lenders are more willing to lend more funds to investors and businesses. The intersection of the demand and supply curves for loanable funds creates the equilibrium interest rate.

Cheers!

8 0
3 years ago
Mariposa Corporation is considering purchasing equipment for $200,000. Mariposa expects this equipment will last for 20 years an
Westkost [7]

Answer:

$24,220

Explanation:

After tax cashflow formula as follows;

AT cashflow = Income before taxes(1- tax) + annual depreciation amount

Depreciation amount is added back because even though it is an expense deducted to arrive at the income before tax, it is not an actual cash outflow.

Annual depreciation amount = $200,000/ 20 = $10,000

AT cashflow = 18,000*(1-0.21) + 10,000

= 14,220 + 10,000

= 24,220

Therefore, Mariposa’s expected cash flow after taxes per year is $24,220

6 0
3 years ago
kiki is a manager of a small boutique gift store. she only has two employees, tim and sandra. tim is a part-time student and is
goldenfox [79]

Kiki as a manager is an example of a manager enhancing the employees job satisfaction, because she let Sandra do what she is passionate about.

<h3>How Managers Can Motivate Employees?</h3>

Since every worker is unique, supervisors should take that into account when determining the best way to express their gratitude. According to Chester Elton, co-author of Leading with Gratitude alongside Go stick, "Some employees are inspired by the opportunity to take on new, challenging work, an indication that their manager respects and relies on them." People who are more socially inclined at work might value going out to lunch together to celebrate a victory.

It's also a good idea to use gestures to support your speech. Employees should ideally be rewarded by being given more scheduling freedom or by being placed on a promotion route. Don't forget to compliment staff on their unique qualities as well.

To learn more about 'Employee motivation' ,visit:brainly.com/question/18852626

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8 0
2 years ago
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