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Reptile [31]
3 years ago
13

If a firm applies its overall cost of capital to all its proposed projects, then the divisions within the firm will tend to ____

__. Group of answer choices receive less funding if they represent the riskiest operations of the firm avoid risky projects so that they will receive more funding become less risky over time based on the projects that are accepted have equal probabilities of receiving funding for their projects propose higher risk projects than if separate discount rates were applied to each project
Business
1 answer:
balandron [24]3 years ago
6 0

Answer:

receive less funding if they represent the riskiest operations of the firm                

Explanation:

In simple words, the cost of capital is represented as weighted average and its represents the level or return expected by the investors and represents the level of risk of the firm on average. Therefore, managers tends to lift up or down this return depending upon the risk of the potential project to be taken.

   Thus, if the average return will be applied for all projects then high risk projects will get less funding and low risk project will get excess funding.

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A prototype is ________.
vodka [1.7K]

a. the first physical depiction of a new product is the best otion A prototype is the physical form of an idea or concept, usually in a model.

3 0
3 years ago
You are making a $120,000 investment and feel that a 10 percent rate of return is reasonable given the nature of the risks invol
Vika [28.1K]

Net Present Value is the difference between the present value of cash flows and the initial investment.

Net Present Value = Present Value of cash flows - Initial Investment

The following image shows the Net Present value of the cash flows:

Net Present Value = $122,142 - $120,000

Net Present Value = $2,142

5 0
3 years ago
Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Tom [10]

Answer:

$76,260

Explanation:

Calculation to determine the total period cost for the month under variable costing

Using this formula

Total Period cost = Variable selling and administrative cost + Fixed manufacturing overhead + Fixed selling and administrative cost

Let plug in the formula

Total Period cost = ($14 × 1,760) + $18,180 + $33,440

Total Period cost =$24,640+$18,180 + $33,440

Total Period cost =$76,260

Therefore the total period cost for the month under variable costing is $76,260

8 0
2 years ago
Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that throu
Brilliant_brown [7]

Answer:

a. The amount of dollars will the cash management system free up is $10,220,000

b. The income will be of $1,022,000

Explanation:

a. According to the given data in order to calculate the amount of dollars will the cash management system free up we would have to make the following calculation:

Freed-up fund = $3,200,000 * 3 + $1,240,000 * 1/2

Freed-up fund = $10,220,000

The amount of dollars will the cash management system free up is $10,220,000

b. To calculate the income If Neon Light Company can earn 10 percent per annum on freed-up funds we would have to make the following calculation:

Interest on freed-up cash = $10,220,000 * 10%

Interest on freed-up cash=$1,022,000

The income will be of $1,022,000

7 0
3 years ago
at what point described below will producer surplus most likely drop to zero for a firm? a.) when the firm is taking a significa
kherson [118]

(B) When revenue equals opportunity and variable cost, then the producer surplus most likely drops to zero for a firm.

<h3>What is revenue?</h3>
  • The total income derived from the sale of products or services pertaining to a business's core operations is referred to as revenue.
  • Because it appears at the top of the income statement, revenue, which is also known as gross sales, is frequently referred to as the "top line."
  • A company's overall earnings or profit are referred to as income or net income.
  • Although both revenue and profit are positive indicators for your company, they are not the same thing.
  • The producer surplus for a firm will probably reach zero when revenue equals opportunity costs and variable costs.

Therefore, (B) when revenue equals opportunity and variable cost, then the producer surplus most likely drops to zero for a firm.

Know more about revenue here:

brainly.com/question/16232387

#SPJ4

3 0
10 months ago
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