Answer:
(a) It will have multiple IRRs
(b) The MIRR calculated is 10.18% . Going by MIRR result , this project will only generate returns that is equal to cost of capital(10%) .If there are other avaible more viable projects, it should be rejected ( Please see attached computation).
Explanation:
(a) The multiple IRRs occurs when cash flows change sign and result in more than one value for the IRR.
Application of IRR to value an investment is only suitable when the project has normal cash flows, i.e a negative initial cash flow (i.e initial investment) followed by a series of positive cash flows.
In this scenario, we have negative cash flow of $6m in year 4 which occured after positive cash flow of $3.5m per year from year 1 to 3. This typically make IRR unreliable. To overcome this limitation , we can use Modified Internal Rate of Return (MIRR)
(b) Please see attached for more details.
Answer:
The correct answer is a. Relationship management.
Explanation:
Good human relationships within a company are a very important factor in achieving success, not only with the client, but also internally among the team that forms the human capital of the company.
Organizations need to have leaders who know how to manage talent and be able to adapt to changes in the labor market.
Human relationships are the set of rules, principles and techniques for people to establish better relationships with each other. It is the degree of acceptance, sympathy and maturity that we reflect towards others. Without a doubt, a very important aspect within the business organization.
Answer:
The correct answer is letter "A": having a high level of control and speed as an entry strategy to overcome trade barriers.
Explanation:
An acquisition is, in general terms, the purchase of a corporation or a division of a firm. Some acquisitions are paid out in cash, while others are paid out with a combination of cash and company shares. Some are even financed by debt, which is called a leveraged buyout.
<em>Acquisitions are often carried out by another company in a similar line of business, which uses the acquired business to improve its own operations, have complete control in the business operations, tear down entry barriers if the target company is aborad, and fasten operational processes.</em>
Answer:
The price of building materials suddenly going up.- B.
The answer is <span>explicit and implicit attitudes. </span>Both have negative or positive feeling towards a subject. The essential contrast between the two is found in the cognizant consciousness of a specific state of mind and how the demeanor is communicated. Verifiable mentalities are oblivious while unequivocal states of mind are cognizant.
