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]
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

You might be interested in
There are __ in every economy that are used to produce the goods and services that people want and need
d1i1m1o1n [39]
Answer:
limited resources
6 0
3 years ago
As a factor of production, what is capital?
Debora [2.8K]

Answer:

Option "D" is the correct answer.

Explanation:

Labor produces tangible goods, which are referred to as capital. There are production-related man-made items such as machinery, vehicles, and chemicals. That is what sets them apart from commercial products.

8 0
3 years ago
Miranda wants to operate a small catering business out of her home, located in a quiet residential neighborhood. She
morpeh [17]

According to the given scenario, Miranda has discovered that her new business will definitely be successful. Thus, option first is correct.

<h3>What is Business?</h3>

A business is an organization or enterprising body that engages in commercial, industrial, or professional activities. Businesses can be nonprofit organizations or for-profit enterprises.

Among the various business structures are partnerships, corporations, limited liability companies, and sole proprietorship.

According to the above situation, Miranda has learned that the future of her new company is bright as he has taken certain important steps in order to grow her business.

Therefore, it can be concluded that first is correct.

Learn more about business here:

brainly.com/question/15826604

#SPJ1

5 0
1 year ago
many credit card companies will let you determine your interest rate when they approve for your card true or false
SashulF [63]

The answer to this is false because all they want is for you to use their card and then it will hurt you credit score because then you will have to pay interest rates.

So it is false

6 0
3 years ago
Read 2 more answers
You are the owner of a shoe company. You learn that it would be cheaper
diamong [38]

Answer:

Being a businessman and being charitable at the same time is just next to impossible at the time of expanding one's firm.

Explanation:

A business person's main motive has to be his ability to expand, so that he reaches that particular stage to do some charity for his fellow citizens. If you look at the unemployment part, then you must know that every person is somehow talented and in countries like the US, no one lives unemployed.

Therefore, it is necessary for a business person to calculate the cost factors, that does not only include the cost of labors, but also the cost of exporting the materials to Bangladesh and the cost of importing the final products. Then he needs to compare the total cost making the shoes in Bangladesh with making them via the US labors, and then take the decision accordingly.

3 0
3 years ago
Other questions:
  • Metals and energy currency futures contracts are actively traded on Group of answer choices propane. gold. All of the options ar
    13·1 answer
  • Summarize the internal control principle of establishing responsibility by completing the following sentence. Proper internal co
    15·1 answer
  • Technician a says that riveted linings are more common on light-duty vehicles since they are less expensive to build and the riv
    5·1 answer
  • The sign on the shoe store door said: "Ninety-nine percent of our clients are satisfied customers!" They based this on the comme
    12·1 answer
  • Inflation is best understood as the rate at which __________.
    12·1 answer
  • Erin Brushwood sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $
    12·1 answer
  • Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 100 units at $45 per unit.
    11·1 answer
  • In the market for sushi, an increase in the price of fish along with an increase in the popularity of sushi among consumers will
    14·1 answer
  • Help plz asap will mark brainlieast
    11·1 answer
  • Ken and Joe are out at a bar drinking. During the evening, Ken writes a note on a cocktail napkin agreeing to sell his car to Jo
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!