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iren [92.7K]
4 years ago
5

Sometimes a cost must be incurred to obtain an abandonment option. this cost should be incurred if and only if the value of the

option exceeds its cost. the value of an abandonment option can be estimated by first calculating the value of the project considering the possibility of abandonment, then subtracting the value of the project if it could not be abandoned. the difference in values is the value of the abandonment option. true or false
Business
1 answer:
Gennadij [26K]4 years ago
8 0

Answer: False

An abandonment option is a feature which protects each party’s financial interest in the event an investment fails to earn. It gives a party a right to withdraw from a contract before its maturity.

An abandonment value, on the other hand, is the liquidation value of the asset and can be calculated by subtracting the net present value of the investment from the initial value. If it is negative, then an abandonment option is exercised.


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Explain, in your own words and step-by-step, what happens to wastewater once it reaches the treatment plant. (6 steps)
timofeeve [1]

Answer:

After wastewater reaches the treatment plant, there are two process applied consecutively: Primary treatment and Secondary treatment.

Explanation:

  • When water reaches to the treatment plant there are two process for the treatment:
  1. Primary Treatment: Here most of the solid particles are filtered out. The screening process removes the large floating  objects such as rags and sticks that may hamper the pipes. Then the grit chamber sediments the sands, stones, cinders etc. in the sedimentation tank.
  2. Secondary Treatment : It is the process of removing the organic wastage by using the bacteria. The trickling filter and the activated sludge process removes about 80% of the organic waste from the water.  
7 0
3 years ago
Suppose the U.S. government encouraged consumers to trade in their old automobiles for more efficient, new models by paying up t
Sunny_sXe [5.5K]

Answer:

People respond to economic incentives                        

Explanation:

Economic incentives is what encourages you to act in some way, while expectations are your needs your interests and your preferences. Economic incentives offer you the drive to follow your interests. These can be grouped further as extrinsic and intrinsic incentives.

Extrinsic incentives arise from the outside of the human being. These are the usual economic incentives you're likely to think of all along. Extrinsic rewards include cash, bonuses, sales, and earnings.  Intrinsic incentives are inherent inducements, and are inner to the individual. It is an intrinsic motivation to get satisfaction from jobs.

3 0
4 years ago
Financing activities involve:
Svetradugi [14.3K]

Answer:

Option B. Long-term liability and owners' equity items.

Explanation:

The reason is that financing activities involves the borrowings and raising funds either for financing its growing business working capital or for the investment in one or more than one projects which will generate value for the company. Furthermore, the financing activity also includes the paying off the debts, interest payments and dividend payments.

Acquiring & disposal of assets and income earned by lending other companies are investments and falls under the investing activities.

The cash generated by the sale of products and services are the cash generated from the operating activities as it is the core operation of the company.

So the only option which is correct is option B.

5 0
3 years ago
Adoption of which of the following ethical approaches is most likely to cause a company to use tools such as cost-benefit analys
Rina8888 [55]

Answer:

B.Utilitarianism

Explanation: Utilitarianism is a Normative and persuasive Ethical phylosophy,which tends to relate the outcome or consequences of certain conditions or activities to the choices a person or an organization makes. It type of Ethical phylosophy believes in the general good of the public when certain steps are taken by Organisations or Government or the people,it looks detests selfishness.

7 0
3 years ago
Read 2 more answers
Oneta Chemical Company evaluated a project that is riskier than the firm's average risk. It generally expects a return of 12% fr
swat32

Answer:

The question is missing options below:

a. 12%

b. 15%

c. 3%

d. 9%

Your best bet is option B,15%

Explanation:

There is a perfect positive  correlation  between risk and return when making investment decisions,in that a higher risk investment is compensated with higher return and vice versa.

The company earns  a return of 12% averagely,but the current project is more riskier, in other words,there has to be an incentive over and above the current return for this project to be acceptable.

In other words, the 3% extra is added to the average return of 12% ,giving an expected return of 15%(12%+3%)

Option A would have been correct if the new project has the same level of risk as existing ones.

Option D would been chosen if the new project is less riskier(12%-3%)

6 0
4 years ago
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