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Gelneren [198K]
3 years ago
15

You are considering two mutually exclusive projects. Project A costs $3.6 million, has a required return of 14.5 percent, and an

IRR of 14.3 percent. Project B costs $4.1 million, has a required return of 16 percent, and an IRR of 15.6 percent. Which project(s) should be accepted
Business
1 answer:
sp2606 [1]3 years ago
3 0

Answer:

Neither

Explanation:

The internal rate of return is a capital budgeting method that is used to determine the profitability of a project.

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

The decision rule when using the internal rate of return is to undertake the project if the internal rate of return is greater than the required return of the project. If this is not met, the project should be rejected.

If choosing between multiple projects, the decision rule is to choose the projects with the highest internal rate of return. This is because that project would be the most profitable.

Neither of the project should be selected because the IRR of both projects is less than their required returns

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Answer:

The correct answer is letter "B": False.

Explanation:

Anticipatory repudiation is the act by which one party notifies the other intentions of not continuing with their relationship -typically tied to a contract- because of different factors. Those factors sometimes are specified in the terms of the contract and must be met for a Court to qualify the case as an anticipatory breach.

Thus, in the example, <em>Helen should retract her anticipatory breach since she will be able to make the payments for the gas service even though Paris changed the supplier.</em>

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If you intend to purchase Tata Nano, describe the stages in the purchase decision process.
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The basic five stages are problem recognition, information search, alternatives evaluation, purchase decision, and post-purchase evaluation.

<h3>What is a purchase?</h3>

A purchase refers to the action of buying something. Purchasing is considered an important course of action.

There are five main stages that a customer needs to undergo before making any decision either to buy a product or not.

The five stages are

  • Problem recognition- It is the most basic step that ensures if there is a need for purchase.
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  • Alternatives evaluation- It helps in evaluating the choices available for the product. Other options for cars are taken into consideration.
  • Purchase decision- After evaluation, a consumer may decide between buying Tata Nano. This decision depends upon the feedback of other people.
  • Post-purchase evaluation- After purchasing, it may lead to brand loyalty if the customer is satisfied with the purchase.

Learn more about the Purchase decision process here

brainly.com/question/26517026

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