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3 years ago

A firm with a WACC of 10% is considering the following mutually exclusive projects:

Business

1 answer:

8090 [49]3 years ago

8 0

Answer:

Option e is the correct answer.

As the NPV of project 1 is higher than Project 2's NPV, Project 1 is recommended,

Explanation:

To determine which project to choose, we will calculate the net present value (NPV) of both projects and the project with the higher NPV will be chosen.

NPV is the present value of the future cash flows inflows expected from the project less any initial cost. The formula for NPV is as follows,

NPV = CF1 / (1+WACC) + CF2 / (1+WACC)^2 + ... + CFn / (1+WACC)^n - Initial outlay

Where,

CF1, CF2,... is the cash flow in year 1, Year 2 and so on

NPV - Project 1 = 60 / (1+0.1) + 60 / (1+0.1)^2 + 60 / (1+0.1)^3 +

220 / (1+0.1)^4 + 220 / (1+0.1)^5 - 200

NPV - Project 1 = $236.076 rounded off to $236.08

NPV - Project 22 = 300 / (1+0.1) + 300 / (1+0.1)^2 + 100 / (1+0.1)^3 +

100 / (1+0.1)^4 + 100 / (1+0.1)^5 - 600

NPV - Project 2 = $126.1861 rounded off to $126.19

As the NPV of project 1 is higher than Project 2's NPV, Project 1 is recommended,

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Ginger's working on creating her first Google Search Ad. She wants to create an inviting and relevant ad, so potential customers

pav-90 [236]

has a larger font size

includes a current promotion

is listed after search results

includes at least two different colors

has a relevant headline

Answer:

has a relevant headline

includes a current promotion

Explanation:

A google search ad is a paid advertisement that is created to promote a product or service using the google ads platform and they appear in the search results on Google. To create a relevant ad that will earn user clicks, Ginger should focus on creating an ad that has a relevant headline that is related to the product or service so that it will attract the potential customers that are looking what she is offering. Also, the ad should include a current promotion that will increase potential customer's interest and call them to action.

The other options are not right because having a large font size, being listed after search results and including at least two different colors won't get customers interest and lead them to act by clicking on the ad.

7 0

3 years ago

EuroRail and Swiss Rail are hypothetical railways that have a duopoly on the route that connects the cities of Zurich and Munich

Wittaler [7]

Answer:

Select the answer that best describes the strategies in this game.

Both companies dominant strategy is to add the train.

Does a Nash equilibrium exist in this game?

A Nash equilibrium exists where both companies add a train. (Since I'm not sure how your matrix is set up I do not know the specific location).

Explanation:

we can prepare a matrix to determine the best strategy:

Swiss Rails

add train do not add train

$1,500 / $2,000 /

add train $4,000 $7,500

EuroRail

do not add train $4,000 / $3,000 /

$2,000 $3,000

Swiss Rails' dominant strategy is to add the train = $1,500 + $4,000 = $5,500. The additional revenue generated by not adding = $5,000.

EuroRail's dominant strategy is to add the train = $4,000 + $7,500 = $11,500. The additional revenue generated by not adding = $5,000.

A Nash equilibrium exists because both companies' dominant strategy is to add a train.

7 0

3 years ago

-8/3 + 7/2 =? por favor ayúdenme.

Triss [41]

Answer:

-5/6

Explanation:

Fist find the common denominators of the two

$- \frac{16}{6} + \frac{21}{6}$

Then you that minus sign in front of the fraction that means its negative

although theres an addition sign where subtracting fractions.

given it's in this order the fraction will be negative

$- \frac{16}{6} + \frac{21}{6} = - \frac{5}{6}$

6 0

3 years ago

Suppose that the u.s. government doubles its spending on health care. the _____ curve shifts _____, output _____, and prices ___

denpristay [2]

The aggregate demand curve shifts right, output increases, and prices increase when the U.S. government doubles its spending on health care.

Aggregate demand or AD refers to the total demand for all individual goods and services.

The aggregate demand and supply for an economy can be depicted by a schedule, a curve, or even an algebraic equation. Just like the demand and supply for individual goods and services.

The total quantity of all goods and services that the economy demands at various price levels is illustrated by the aggregate demand curve.

Therefore, if the U.S. government doubles its health care spending, the aggregate demand curve shifts right, output rises, and prices rise.

Know what happens when there's equilibrium or when supply and demand meet: brainly.com/question/1342403

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8 0

2 years ago

How did the long sunday holiday contribute to the collapse? check all of the boxes that apply. stockbrokers who still had profit

Diano4ka-milaya [45]

Stockbrokers who still had profits on their books were afraid that their profits would disappear.

Stockbrokers who had losses were afraid that those losses might get larger.

Investors decided to get out of the market.

3 0

3 years ago

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