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Marat540 [252]
3 years ago
10

angston Labs has an overall (composite) WACC of 10%, which reflects the cost of capital for its average asset. Its assets vary w

idely in risk, and Langston evaluates low-risk projects with a WACC of 8%, average-risk projects at 10%, and high-risk projects at 12%. The company is considering the following projects: Project Risk Expected Return A High 15% B Average 12% C High 11% D Low 9% E
Business
1 answer:
masya89 [10]3 years ago
4 0

Answer:

The correct answer is project A, B and D.

Explanation:

According to the given scenario, the given data are as follows:

Low risk WACC project = 8%

Average risk WACC project = 10%

High risk WACC project = 12%

As the company always prefer the projects that exceeds the WACC projects.

So,

  • Project A has 15% which exceeds the high risk WACC project.
  • Project B has 12% which exceeds the average risk WACC project
  • Project C has 11% which does not exceeds the high risk WACC project, hence it is not the correct answer.
  • Project D has 9% which exceeds the low risk WACC project.
You might be interested in
A formula that calculates the total dollar value of all goods and services produced in a nation and all the goods and services p
Lina20 [59]

Answer:

Gross National Product (GNP)

Explanation:

According to Investopedia, "the Gross National Product is the value of a nation's finished domestic goods and services during a specific time period".

*Note that the GNP should NOT be confused with the GDP (Gross Domestic Product). The GDP only accounts for the value of goods and services produced within a nation's borders, while the GNP also adds the value of services produced by that country's employees and companies in other nations.

7 0
3 years ago
At the start of its fiscal year, a company anticipated producing 300,000 units throughout the year. The annual budgeted manufact
scoray [572]

Answer:

The correct answer to the following question is $36,000.

Explanation:

Given information  -

Units anticipated to be produced - 300,000 units

Variable cost - $150,000

Fixed cost - $600,000

Beginning inventory - 5000 units

Ending inventory  - 7000 units

Income under absorption costing - $40,000

Now under the absorption costing, rate of fixed overhead cost per unit -

Fixed cost / Number of units produced

= $600,000 / 300,000

= $2

In April ( under absorption costing ), the amount of fixed manufacturing overhead cost that was still embedded in ending inventory but were not expense -  

Fixed overhead rate per unit x number of units produced but not sold

= $2 x 2000 ( 7000 units - 5000 units )

= $4000

So when we calculate the operating cost under variable costing this fixed overhead cost wold be subtracted from total income -

$40,000 - $4000

= $36,000 .

6 0
3 years ago
Economic growth is _____.
erica [24]

economic growth can result from a(n) _____ in government expenditures and a(n) _____ in net exports.

5 0
3 years ago
According to the human relations approach, employee commitment to an organization is gained by ______. Select one: 1. economic m
NemiM [27]

Answer:

"4"

Explanation:

Human relations approach to employees management believes that employees are not only motivated by financial incentives but other factors like praises , interpersonal relationship and delegation of roles and this in return , boost their commitment.

The managers are involved in active support of employees' growth and performance.

It underscores the importance interpersonal and social relationship in a work environment.

5 0
3 years ago
Assume your university earns an average rate of return of 5.65 percent on its endowment funds. If a new gift permanently increas
Dennis_Churaev [7]

Answer:

The amount of the gift is 566,371.6814

Explanation:

Average rate of return = Average net profit / average investment

Average rate of return = 5.65% (5.65/100 = 0.0565)

average net profit = 32000

average investment =  unknown

to calculate the amount of the gift which is investment in this case the same formula for Average rate of return will be used i.e

Average rate of return = Average net profit / average investment

0.0565 = 32, 000/ x

cross multiply

0.0565 x = 32,000

divide both sides by 0.0565

x = 32,000/0.0565

32,000/ 0.0565 = x  

x = 566,371.6814

The amount of the gift  is 566,371.6814

6 0
3 years ago
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