1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Over [174]
2 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]2 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

You might be interested in
Whose name is associated with humanism
Svetradugi [14.3K]

Answer:

The major theorists considered to have prepared the ground for Humanistic Psychology are Otto Rank, Abraham Maslow, Carl Rogers and Rollo May. Maslow was heavily influenced by Kurt Goldstein during their years together at Brandeis University. Psychoanalytic writers also influenced humanistic psychology. i hope this helps

Explanation:

7 0
3 years ago
The actual and standardized budgets will be equal when: 
A. The rate of inflation is zero
B. The economy is at full employment
C
alexira [117]

Answer:

The correct answer to the following question is B) the economy is at full employment.

Explanation:

Standardized budget which is also know as full employment budget , is used to measure the federal budget deficit or surplus , with the given tax rates and government spending. Here the assumption made is that the economy has full employment, and this is one of the major difference between standardized and actual budget . Also standardized budget would reflect any type of adjustment that has to be made in the actual budget. So therefore the only way that actual budget and standardized budget are equal is when they both have full employment present in the economy.

8 0
3 years ago
Anika knows that her company has a formal code of conduct, but she does not see this code being equally and consistently applied
Luda [366]

Answer:

<u>Opportunity</u>

Explanation:

A code of conduct creates a formal way of how employees maintain a standard of conduct while interacting and discussing ideas.

Such a conduct is essential for any organization since it implements the abidance by rules and organizational policies treating everybody equally and ensuring just and fair treatment to all.

In the given case, an employee observes the existence of a formal code of conduct at her workplace which is not implemented consistently at all levels and covering all employees.

Such negligence in implementation would lead to an enhancement of the possibility and creates an opportunity for employees to commit unscrupulous acts, being aware of the shortcomings in the implementation of such formal code of conduct.

7 0
3 years ago
Pina Colada Corp. holds Tamarisk, Inc. $44400, 120-day, 15% note. The entry made by Pina Colada Corp. when the note is collected
Dafna1 [17]

Answer and Explanation:

The journal entry is shown below

Cash  $46,620

     To Notes Receivable $44,400

     To Interest receivable ($44,400 × 15% × 120 days ÷  360 days)

(Being the cash received is recorded)

Here we debited the cash as it increased the assets and at the same time we credited the interest receivable and the note receivable as it decreased the assets

The same is to be considered

7 0
3 years ago
Marcy and Liz developed a new jewelry design. They were fortunate to get the attention of a large online retailer who was willin
Tju [1.3M]

The retailer was asking the designers to agree to <u>Exclusive distribution</u>.

<u>Explanation:</u>

Exclusive distribution is characterized as the arrangement under which a participant is a supplier and provider. It specifies that the seller can not offer their service or item to some other group. It attaches the contract that the commodity must be distributed to an exclusive seller. The retailer asks developers for exclusive supply as per the situation specified in the discussion. Retailer does not want the jewelry design to be sold to any other outlet or retailer for successful sale. Thus agreement on this matter is suggested by the retailer.

3 0
3 years ago
Other questions:
  • Which of the following actions has NO impact on your credit score?
    13·1 answer
  • The Chinese culture is a tight social framework in which people take care of the members of a broader in group and act loyal to
    10·1 answer
  • The four components of gdp are consumer spending, business investment, government spending, and
    11·1 answer
  • Grand River Corporation reported pretax book income of $700,000. Included in the computation were favorable temporary difference
    6·1 answer
  • What do you mean by consistency in accounting ?
    7·2 answers
  • 1.Have you or someone you know worked somewhere where the culture was strong? What was your reaction to that strong culture? Did
    5·1 answer
  • Oriole Company reported cost of goods sold as follows. 2022 2021 Beginning inventory $ 30,150 $ 20,730 Cost of goods purchased 1
    13·1 answer
  • A ZERO COUPON BOND IS SOLD FOR 550 DOLLARS AND MATURES IN 35 YEARS WHAT IS THE YTM
    7·1 answer
  • For the past year, Zhao Events had taxable income of $198,600, beginning common stock of $68,000, beginning retained earnings of
    13·1 answer
  • Does the seller's agent represents the broker True or false?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!