1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mariarad [96]
3 years ago
5

A firm is considering two projects. Project Peso requires an initial investment of $100,000. The Internal Rate of Return for Pro

ject Peso is 10.6%. Project Quasi requires an initial investment of $90,000. The Internal Rate of Return for Project Quasi is 12.6%. The WACC is 9%. The two projects are independent. What decision should the firm make
Business
1 answer:
Fofino [41]3 years ago
6 0

Answer:

to accept both the projects i.e. Project Peso and Project Quasi

Explanation:

As we can see in the given case, that the weighted average cost of capital on the projects is 9% while on the other hand, Perso and Quasi both have the internal rate of return 10.6% and 12.6% i.e. above 9% so based on this, the decision that should firm make is to accept both the projects i.e. Project Peso and Project Quasi

The same would be relevant

You might be interested in
What is the expected return if a firm has a payout ratio of 0.4, a return on equity of 25%, and a dividend yield of 6%
Varvara68 [4.7K]

Answer:

21%

Explanation:

We can calculate the expected return of a firm by add dividend yield and growth rate but in this question, the growth rate is not given therefore we will find growth rate first with the available data

DATA

Payout ratio = 0.4

Return on equity = 25%

Dividend yield = 6%

Solution

Growth rate = Return on equity x retention ratio

Growth rate = Return on equity x (1 - payout ratio)

Growth rate = 25% x (1-0.4)

Growth rate = 25% x 0.6

Growth rate = 15%

Expected return = Dividend yield + growth rate

Expected return = 6% + 15%

Expected return = 21%

6 0
3 years ago
Usa jobs is an example of what​
Dennis_Churaev [7]

Answer: A way to earn money.

Explanation: There are many other ways to earn, like selling drugs, or robbing a elderly woman who tries to hit you with her cheap shoulder bag. There are many ways.

6 0
3 years ago
Which of the following sample planning factors would influence the sample size for a substantive test of details for a specific
Savatey [412]

Answer:

Option "A" is correct. Expected amount of misstatements

Explanation:

7 0
3 years ago
Read 2 more answers
What federal agency is tasked with developing policies and procedures for emergencies that impact federal lands?
mariarad [96]
It can fall between Federal Emergency Management Agency (FEMA) or the U.S. National Guard (depends if the head of government for said state declared the are as in a state of emergency.<span />
3 0
3 years ago
Discuss ten (10) different purposes of an evaluation of salesperson performance and how each purpose affects the performance eva
ololo11 [35]

Answer:

1. To ensure that compensation and other reward disbursements are consistent with actual performance

2. To identify salespersons who needs to be promoted

3. To identify salespersons who should be fired/terminated

4. To determine the specific training and counseling needs of individual

5. To provide information for effective human resource (Succession) planning

6. To identify criteria that can be used to recruit and select salespersons in the future

7. To advise salespersons of work expectations

8. To motivate salespersons

9. To help salespersons set their career goals

10. To enhance effective communications between salesperson and sales manager

Explanation:

How each purpose affects the performance evaluation process

1. To ensure that compensation and other reward disbursements are consistent with actual performance

Compensation and rewards affects the performance and it should be on the merit.

2. To identify salespersons who needs to be promoted

Promotion shall be given on the basis of evaluation

3. To identify salespersons who should be fired/terminated

Termination should be on the basis of performance evaluation

4. To determine the specific training and counseling needs of individual

Training shall be provided on the basis of evaluation

5. To provide information for effective human resource (Succession) planning

Succession planning should be on the basis of performance evaluation so that the exceptional performers must be retained,

6. To identify criteria that can be used to recruit and select salespersons in the future

It helps in understanding the factors that will be useful to recruit and select salespersons

7. To advise salespersons of work expectations

On the basis of evaluation, it will be decided to communicate the work expectations

8. To motivate salespersons

It will help in understanding the factors which motivate the salespersons

9. To help salespersons set their career goals

Salespersons will understand about their future and set their career goals.

10. To enhance effective communications between salesperson and sales manager

It will help to communicate effectively about the expectations of  salesperson and sales manager  and better coordination

7 0
3 years ago
Other questions:
  • As the level of activity increases, how will a mixed cost in total and per unit behave? In Tota Per UnitA) Increase DecreaseB) I
    7·1 answer
  • Splish Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction
    8·1 answer
  • Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 2018. The book value and fair value of Vicker'
    6·1 answer
  • Determine which statement about the absolute value of the price elasticity of demand is correct. The price elasticity of demand
    11·1 answer
  • Assume PRC Corp., an equipment distributor, sells a piece of machinery with a list price of $600,000 to ACH Inc. ACH will pay $6
    11·1 answer
  • A(n)__________is a branch of decision support systems (DSSs) that gives managers easy access to internal and external data and t
    12·1 answer
  • Problem 4-8 Sales and Growth [LO2] The most recent financial statements for Alexander Co. are shown here: Income Statement Balan
    8·1 answer
  • Foundation for motivation
    11·1 answer
  • Garrett sold his primary residence for $595,000, which was a capital gain of $315,000. how much may garrett exclude on his incom
    11·1 answer
  • Nadine enterprises have total assets of $240,000, a debt-qeuity ratio of 0.60 and a return on assets of 9%. what is the return o
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!