Answer:
d. If the WACC is 9%, Project B's NPV will be higher than Project A's.
Explanation:
The internal rate of return is the return in which the NPV is zero i.e cash inflows equal to the initial investment
While the WACC refers to the cost of capital by considering the capital structure i.e cost of equity, cost of preferred stock and cost of debt by taking their weightage
Now if the WACC is 9% so project B NPV would be higher as compared to project A as we can see that project B IRR is greater than the project A IRR
Therefore option d is correct
Taxable income is the sum of income used to compute a person's
or a business's income tax due. Taxable
income comprises salaries, pays, bonuses and tips, on top of investment revenue
and unearned revenue. In this case, the corporation have $25 million that came
from US Sources then the additional $10 million is also part of the taxable
income because it is part of the normal course of the business. Therefore,
GreenCo must report $35 million.
Answer:
There comes a time when every company must make a decision to evolve because the products that they offer will always become obsolete at some point in the future. This is simply because humans will always strive to make processes more efficient.
Electronics Company A is a leader in the radio market but that market is shrinking. There is a new revenue stream however and that market is growing.
The decision that they should make is to reduce the amount of facilities that are dedicated to radios and channel it to the production of CD players so that they may gain dominance there before the market becomes saturated. Had Kodak have done this when digital cameras were on the rise, their fall from grace might not have happened at all.
The Opportunity Cost of this however is that they may lose dominance in the radio industry which is only <em>slowly </em>declining meaning that there are still profits to be made. The keyword however is that the market is <em>declining</em>. They should therefore evolve and move to an industry that is on the up and up which is the CD player.
Failure to do this would mean that they would become another Kodak or Blockbuster.
Answer:
B. No, the increase in price will not cause a shift of the supply curve.
Explanation:
It is important to note that a rightward shift in the demand curve will not affect the price of the product nevertheless, it will only increase the demand for the product. A shift in the demand curve is caused by some factors other than just the price of the commodity.
As a result of that, the price of the product will remain constant, however, the demand for the product will increase.
National Energy Regulator of South Africa
NERSA (European Fast Reactor Power Station)
NERSA North East Regional Science Association. Hope that should help