Answer:
<u>Dingo should reject this project </u>
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Explanation:
sales - operating expenses = controllable margin
controllable margin/operating asset = return on assets
100,000 sales - 86,000 expenses = 14,000
14,000/200,000 = 0.07 = 7%
This project yield 7% which is lower than Ding required rate of return of 9%
Dingo should reject this project of finance it through a lower cost of capital.
The corridor is the vertical section of the supply curve of reserves in the federal fund market.
The incorrect statement is : The income from the TSA is received income tax-free. Upon retirement, payments received by employees from the accumulated savings in tax-sheltered annuities are treated as ordinary income.
