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Strike441 [17]
3 years ago
9

The Road Stop is a national hotel chain with a cost of capital of 12.4 percent. This chain is considering opening a high-end res

ort that is expected to have a cost of capital that is at least 13 percent. The estimated net present value of the resort project is $500 when discounted at 12.4 percent. The best representation of this situation is that the resort project should:
Business
1 answer:
olga nikolaevna [1]3 years ago
5 0

Answer: probably be put on hold until its cost of capital can be lowered.

Explanation:

Since the Road Stop is a national hotel chain and its cost of capital of 12.4 percent and it is considering the opening a high-end resort that its expected cost of capital will be at least 13 percent.

This shows that the cost of capital of the project is higher than the cost of capital of the hotel. Therefore, in sguvh case, opening the high enee resort isn't worth it as the cost of capital is high and should therefore be put on hold until the cost of capital can be lowered.

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C or d sorry if wrong
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Green Grocer and Futurity Farms enter into an agreement whereby Futurity will supply Green Grocer with 200 dozen eggs every two
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Answer: a, provides 30 days' notice to futurist of its desire to terminate.

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Using the variable cost method, determine the selling price (rounded to the nearest dollar) for 30,000 units using the following
Brilliant_brown [7]

Answer:

c. $8

Explanation:

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First step is to calculate the Markup percent

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7 0
3 years ago
A key use of a customer survey used in the operations consulting phase of problem definition is customer loyalty analysis. True
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8 0
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If the natural rate of unemployment is 5%, and the actual rate of unemployment is 4%: a the short-run Phillips curve will shift
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Answer: d. inflation will increase.

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