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Gelneren [198K]
2 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]2 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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A sporting goods store is having a large sale event. Baseball bats are marked down by 42%, and hockey sticks are marked down by
Rina8888 [55]

The correct statement is   "Hockey sticks had their prices reduced by $0. 41 more than baseball bats."

Mark down refers to a reduction in price of an item or good. The reduction is generally done as a percentage of price of the item. The purpose behind mark down is to increase sales volume.

<h3>Calculation of reduction in price:</h3>

Given:

Markdown in price of baseball bats is 42%

Cost of baseball bats after markdown is $21.46

Markdown in price of hockey sticks is 29%

Cost of hockey sticks after markdown is $39.05

For calculating the amount of markdown, we need to find the original cost of baseball bats and hockey sticks.

Calculation of cost of baseball bats before markdown:

\begin{aligned} \rm Cost \:before\:markdown &= \dfrac{\rm Cost \:after \:Markdown}{100- \rm Markdown\%} \\&#10;\\&#10;&=\dfrac{21.46}{100-42\%}\\&#10;\\&#10;&=\dfrac{21.46}{58\%}\\&#10;\\&#10;&=\$37\end

Hence the markdown in price of baseball bats is \$37-\$21.46=\$15.54

Similarly, for hockey sticks:

\begin{aligned} \rm Cost \:before\:markdown &= \dfrac{\rm Cost \:after \:Markdown}{100- \rm Markdown\%} \\\\&=\dfrac{39.05}{100-29\%}\\\\&=\dfrac{39.05}{71\%}\\\\&=\$55\end

Markdown in the cost of hockey sticks is \$55-\$39.05=\$15.95.

Difference in markdown is:

\$15.95-\$15.54=\$0.41

Therefore it can be concluded that markdown in cost of hockey sticks is more as compared to baseball bats by $0.41

Hence the correct statement is "Hockey sticks had their prices reduced by $0. 41 more than baseball bats."

Learn more about markdown here:

brainly.com/question/3099549

7 0
2 years ago
United Airlines flies a plane from Los Angeles to New York at 8 o'clock on Tuesday morning only 25% full. On Friday, the same fl
Alona [7]

Answer:

Perishability.

Explanation:

Perishability is utilized in marketing to portray the manner by which service limit can't be put away available to be purchased later on. It is a key concept of services marketing.

3 0
3 years ago
Robin Baker, a top manager at Westinghouse, has recently been put in charge of a new multi-million dollar project. She selects s
natulia [17]

Answer:

The answer is: A) Autocratic

Explanation:

Autocratic leadership style, also known as authoritarian leadership, is characterized by heavy control by the group's leader. The leader makes all the decisions and doesn't value the subordinates' contributions. Autocratic leaders make decisions based on their ideas and personal judgement, not the others'.

7 0
3 years ago
Unions contribute to Select one: a. frictional unemployment but not the natural rate of unemployment. b. the natural rate of une
Verizon [17]

Answer:

The correct answer is letter "C": both frictional unemployment and the natural rate of unemployment.

Explanation:

Natural unemployment is defined as the lowest rate of unemployment an economy will reach. It is called natural because its causes are other than an adverse economy. Natural unemployment is a combination of <em>frictional unemployment</em> -employment transitions, <em>structural unemployment</em> -mismatch between abilities and current position, and <em>labor surplus</em>.

Unions are groups of individuals who join to set minimum standards at work in regards to wages, compensations, and conditions. <em>Union members are, by default, always available to join the workforce even if there is work to be done or not. Sometimes, union members are assigned duties their abilities outperform just to avoid having the member unemployed. These are the reasons why unions are said to contribute to natural unemployment.</em>

5 0
3 years ago
Fleet Delivery Corporation is a public company with a market capitalization of less than $75 million. Fleet is poised to issue s
kondor19780726 [428]

Answer:

This enables Fleet to reduce costs of regulatory compliance in relation to the security issue

Explanation:

When a company is exempt under the Securities Act of 1993,this implies that when issuing securities in the market place,the stock exchange ,the company is not required to produce audited financial statements.

Auditing financial statements sometimes cost fortunes especially when it is also required that one of the Big-4 professional firms is to be consulted.

By not requiring audited financials,the costs of audit is saved,hence cost of compliance with exchange rules is reduced overall

5 0
3 years ago
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