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
Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $120,000 in eighteen ye
frozen [14]

Answer:

$3,529.51

Explanation:

Future value = $120,000

N = 18

i = 7%

Future value = Annual savings * [(1 + Interest rate)^Years - 1] / Interest rate

Future value =  Annual savings * [(1 + 0.07)^18 - 1 / 0.07]

Annual savings = $120,000 / [(1 + 0.07)^18 - 1 / 0.07]

Annual savings = $120,000 / 2.37993227573 / 0.07

Annual savings = $120,000 / 33.99903251042857

Annual savings = $3529.512199007199

Annual savings = $3,529.51

Therefore, the annual savings is $3,529.51

4 0
3 years ago
Which financial statement is prepared first?
ddd [48]
C because you have to know how much you make coming in so they can see where you're at
3 0
3 years ago
Read 2 more answers
Bob is a manager at a local Toyota dealership who has lost five of his employees during the last year. Now he has to make a deci
spin [16.1K]

Answer:

Neglecting to gather information on whether or not the plan was successful.

Explanation:

In this step, he is most likely to face the problem of Neglecting to gather information on whether or not the plan was successful. The whole goal of the evaluation and feedback step is to analyze the results that occurred due to the decision that was made and determine whether or not it was successful, and this is done by receiving feedback from those that the decision affects. The biggest problem seen in this step is when the individual fails to gather enough information to determine effectively whether or not the decision was a good decision based on whether or not it accomplished what it was meant to accomplish.

5 0
3 years ago
Dizzy Amusement Park is open from 8:00 am till midnight every day of the year. Dizzy charges its patrons a daily entrance fee of
Licemer1 [7]

Answer:

C. Step variable cost

Explanation:

Fixed costs are those costs which are incurred anyways irrespective of the level of operation of a business or the volume of activity. For example rent of factory is a fixed cost which has to be incurred regardless of the production level.

Variable costs are those costs which vary with the level of production. e.g labor cost.

In this case, a T- shirt is given to every 100th customer.  This kind of cost is step cost at the level of 100th customer. The number of T-shirts in a day would depend upon the no of patrons arriving each day i.e variable.

Thus, this is the case of a step variable cost which is incurred at discrete point i.e every 100th customer.

6 0
4 years ago
Read 2 more answers
On May 31, 2010 Amex Corporation acquired all of 10,000 shares of Luck’s outstanding common stock by paying Br 400,000 cash and
patriot [66]

Answer:

27. Answer the following question in the negative.

Est-ce qu'il y a quelqu'un à la réception de l'hôtel?

Explanation:

gold j]ludkcmmmmm it is ood know

4 0
2 years ago
Other questions:
  • The Green Fiddle is considering a project with sales of $86,800 a year for the next four years. The profit margin is 6 percent,
    13·1 answer
  • The sum of all the federal deficits over time is known as the
    13·1 answer
  • Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His
    8·1 answer
  • The liberal approach to economic development that prioritizes privatization, liberalization of trade and foreign direct investme
    12·1 answer
  • Suppose Will gives his wallet containing $100 to Alex to hold while he works out. During Will’s workout, Alex uses the $100 to p
    6·1 answer
  • An investor owns 50 shares of a stock worth $15.30 per share. Which of the following is the amount of money to cashed in half of
    5·1 answer
  • Suppose that you are conducting market research at a regional mall in your city. The survey you are administering contains some
    11·1 answer
  • I'll give 20 points if you just answer this riddle: You see a boat filled with people. It has not sunk, but when you look again
    7·2 answers
  • Which analyst position analyzes information using mathematical models to help business managers make decisions?
    14·2 answers
  • Please I need help on this Question! 10 POINTS***
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!