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Over [174]
3 years ago
10

Westchester Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A

has an IRR of 11%, while Project B's IRR is 14%. When the WACC is 8%, the projects have the same NPV. Given this information, which of the following statements is CORRECT?a. If the WACC is 9%, Project A's NPV will be higher than Project B's. b. If the WACC is greater than 14%, Project A's IRR will exceed Project B's. c. If the WACC is 13%, Project A's NPV will be higher than Project B's. d. If the WACC is 9%, Project B's NPV will be higher than Project A's. e. If the WACC is 6%, Project B's NPV will be higher than Project A's.
Business
1 answer:
inn [45]3 years ago
5 0

Answer:

d. If the WACC is 9%, Project B's NPV will be higher than Project A's.

Explanation:

The internal rate of return is the return in which the NPV is zero i.e cash inflows equal to the initial investment

While the WACC refers to the cost of capital by considering the capital structure i.e cost of equity, cost of preferred stock and cost of debt by taking their weightage

Now if the WACC is 9% so project B NPV would be higher as compared to project A as we can see that project B IRR is greater than the project A IRR

Therefore option d is correct

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What step is NOT likely to reduce possible attacks to an organization: Select one: a. Restart the Active Directory database b. I
natulia [17]

Answer:

The correct answer would be option A, Restart the active directory database.

Explanation:

When there is an attack on organizational data or information systems, there are many measures that need to be taken to avoid such attacks to make sure that these attacks don't happen again and to check that all systems are working correctly or not. So in this regard, option A is the most appropriate one, because restarting a database will not help in reducing the possible attacks to an organizational data or information systems. Anti virus spyware, installing firewall and ensuring the working of all patches for an operating system and application are more important tasks to do in such situation.

3 0
3 years ago
Read 2 more answers
In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with p
weqwewe [10]

Answer:

C. 13.7

Explanation:

First, we look for the unemployees who seek and want a job

100 people

-10 U-16

-10 retired

-63 employeed

-  7 unemployeed but not seeking for job

10 unemployeed who wants and seeks for a job.

<em>unemployement rate: unemployes / labor force </em>

<u>where:</u>

labor force = employees + unemployees

10 + 63 = 73

unemployement rate = 10/73 = 0.136986 = 0.137

4 0
3 years ago
Which of the following is useful for making rational choices?
ehidna [41]

Answer:

financial planning

Explanation:

It is best to be prepared. most things we want to do cost money. It is very easy to loose track of spending money.

8 0
3 years ago
Read 2 more answers
Mariano Manufacturing can issue a 25-year, 8.8% annual payment bond at par. Its investment bankers also stated that the company
aivan3 [116]

Answer: 10.13%

Explanation:

The after-tax return on the preferred shares would be:

= After-tax return + Premium required

= (8.8% * (1 - 25%)) + 1%

= 7.6%

For the preferred stock to be issued at par with the above after tax return:

= After tax return / ( 1 - tax)

= 7.6% ( 1 - 25%)

= 10.13%

4 0
2 years ago
You're considering a project with an initial cost of $6400, what is the payback period for this project if the cash inflows are
Alinara [238K]
Cost : 6400

900 + 1,350 = 2,250

2,250 + 500 = 2,750

2,750 + 1,350 = 4,100

4,100 + 2,800 = 6900

So there’s more than 6,400 dollars
7 0
3 years ago
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