The answer & explanation for this question is given in the attachment below.
Answer:
d. The accept/reject decision depends on the firm's risk-adjustment policy. If Norris' policy is to increase the required return on a riskier-than-average project to 3% over rS, then it should reject the project.
Explanation:
The accept/reject decision depends on the firm's risk-adjustment policy. If Norris' policy is to increase the required return on a riskier-than-average project to 3% over rS, then it should reject the project.
Loans and interest ability is what I’m assuming.
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Answer:
the annual growth rate between 1985 and 2005 is 1.38%
Explanation:
The computation of the annual growth rate between 1985 and 2005 is shown below:
Future value = Present value × e^(rate × time period)
$145,000 = $110,000 × e^(rate, 20)
$145,000 ÷ $110,000 = e^(rate, 20)
e^(rate, 20) = 1.318
Now take the log in both the sides
In(e^(rate, 20)) = ln(1.318)
r = ln(1.318) ÷ 20
= 1.38%
Hence, the annual growth rate between 1985 and 2005 is 1.38%
