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Musya8 [376]
3 years ago
14

A firm is considering expanding its current operations and has estimated the internal rate of return on that expansion to be 12.

2%. The firm's WACC is 11.8%. Given this, you know that the: the project will have a lower debt-equity ratio than the firm's current operations. the appropriate discount rate for the project is between 11.8% and 12.2%. the project has slightly more risk than the firm's current operations. the expansion should be undertaken as it has a positive net present value.
Business
1 answer:
andrew-mc [135]3 years ago
7 0

Answer:

expansion should be undertaken as it has a positive net present value

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Three groups that participate in the process of establishing gaap are users, preparers, and auditors. these groups are represent
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5 0
3 years ago
Gloria's employer deducted 20 percent of her pay in the month of january due to personal problems he had with her. under the lil
Dafna11 [192]

180 days of the most recent paycheck reflecting the discrepancy.

4 0
3 years ago
A firm is producing 24 units of output. At the 24th unit of output, marginal revenue is $5, and marginal cost is $4; at the 25th
agasfer [191]

Answer:

False.

Explanation:

(1) Units produced = 24 units of output

At the 24th unit of output,

Marginal revenue = $5

Marginal cost = $4

MR ≠ MC

At the 25th unit of output,

Marginal revenue = $4.50

Marginal cost = $4.50

MR = MC

At the 26th unit of output,

Marginal revenue = $4

Marginal cost = $5

MR ≠ MC

A firm maximizes its profit at a point where the marginal revenue is equal to the marginal cost i.e. MR = MC.

It is clear from the above scenario that this firm doesn't stop at 24 units of output because at this point of production profit maximizing condition is not fulfilled which means MR ≠ MC.

This firm should stopped at 25 units of output where marginal revenue is equal to the marginal cost from the 25th unit of output.

6 0
3 years ago
On April 1, the company retained an attorney for a flat monthly fee of $2,000. Payment for April legal services was made by the
olga55 [171]

Answer:

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Date         Account Titles and Explanation      Debit       Credit

April 30   Salaries expenses                             $4,800

                 ($12,000/5) * 2

                        Salaries payable                                         $4,800

                  (To record the Accrual of salaries expense)

May 30      Salaries Expenses

                   ($12,000/5)*3                                   $7,200

                   Salaries payable                              $4,800

                           Cash                                                           $12,000

                    (To record the payment of salaries expenses)

6 0
3 years ago
Consider the assembly line of a laptop computer. The line consists of 11 stations and operates at a cycle time of 1.50 minutes/u
allsm [11]

Answer: 13.5 minutes

Explanation:

Information turnaround time = Cycle time * Number of stations after error is made.

The most error-prone operation is step 2 so assuming an error happens there, there will be 9 more stations in the line.

Information turnaround time will therefore be:

= 1.50 * 9

= 13.5 minutes

8 0
3 years ago
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