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3 years ago

In a case where two projects are not mutually exclusive and have returns exceeding the cost of capital, the firm should

Business

1 answer:

tangare [24]3 years ago

8 0

Answer:

That two projects are not mutually exclusive means the firm can implement both projects. They should run both because they both have returns exceeding the cost of capital.

Explanation:

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In the New Economy, people are most rewarded through education and intellectual growth when they spend years studying a broad ar

aliya0001 [1]

Answer:

False

Explanation:

The formal education setting has not been changing at the same rate with the daily changes in business, technology and other socio-economic elements.Therefore people who spend years studying a broad array of subjects in formal educational settings are less likely to be rewarded through education and intellectual growth.

7 0

3 years ago

You have been given the choice to invest $1,200 each year in an account that is expected to pay 3 percent per year or you can in

gregori [183]

Answer:

$4872.48

Explanation:

future value = amount x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

r = 4% - 3% = 1%

1200 x [(1.01)^4 - 1] / 0.01 = $4872.48

8 0

3 years ago

Problem 3.22: Trade Deficits and J-curve Adjustment Path Assume the United States has the following import/export volumes and pr

Sergio039 [100]

Answer:

The pre-devaluation cost is ($880) and the pst-devaluation trade balance is ($1398)

Explanation:

Assumptions Values

Initial spot exchange rate, $/fc $2.00

Price of exports, dollars ($) * 20.0000

Price of imports, foreign currency (fc) * 12.0000

Quantity of exports, units * 100

Quantity of imports, units * 120

Percentage devaluation of the dollar 18.00%

Price elasticity of demand, imports * (0.900)

a. The pre-devaluation trade balance--

Revenues from exports, $ $2,000

Expenditures on imports, fc * 1,440

Expenditures on imports, $ $2,880

Pre-devaluation trade balance ($880)

b. Resulting trade balance immediately after devaluation

Revenues from exports, $ $2,000

Expenditures on imports, fc * 1,440

New spot exchange rate, after devaluation $2.36

Expenditures on imports, $ $3,398

Post-devaluation trade balance (currency contract period) ($1,398)

8 0

3 years ago

The loan-to-value ratio is 80%. a buyer wants to acquire a property with a purchase price of $116,000. calculate the required do

blondinia [14]

116,000 divided by 80% is $145,000

6 0

3 years ago

Ardent Industries is considering starting a retirement plan for its 850 employees. One option company managers are considering i

Nitella [24]

Answer:

A company that establishes a profit-sharing plan must make annual contributions to the plan, even if the company fails to earn a profit during the year.

Explanation:

A profit sharing plan is defined as the type of contribution plan where the plan helps in saving for the retirement of the employees while providing them the flexibility of the plan features. It is a way for the owners of the business to share the profits with the investors and also a great way to attract investment in his business.

In a profit sharing plan, the organization does not have to make or contribute any amount to the plan annually. Such a plan is best suited for the companies which experiences a fluctuating cash flow.

6 0

3 years ago