Answer:
Projects E,F and G should NOT be considered.
Optimal Capital is $5,750,000
Explanation:
The accept-or-reject rule, using the IRR method, is to acceptthe project if its Internal Rate of Return (IRR) is higher than theWeighted Average Cost of Capital(k) [r>k]. The project shall berejected if its internal rate of return is e lower than theWeighted Average Cost of Capital cost of (r<k)
Accept if r>k
Reject if r<k
Mayaccept if r = k
If the Weighted Average Cost of Capitl (WACC) is less than IRRrate, then the project has positive NPV; if it is equal to IRR, theproject has a Zero NPV, and if it is greater than the IRR, theproject has negative NPV.
The projects should be accepted as the rate of return on theproject is higher than the WACC(10.8%) which means that theprojects will be profitable as the returns are higher than the costof the project (capital). Considering this projects E,F and G should NOT be considered.
And considering the sizes the Optimal Capital is $5,750,000 (the addition of sizes of all projects)
Answer:
The Federal Reserve System's main duties include conducting national monetary policy, supervising and regulating banks, maintaining financial stability, and providing banking services. The Federal Open Market Committee is the Fed's monetary policy-making body and manages the country's money supply.
Explanation:
Answer:
Vehicle registration
Explanation:
Vehicle registration reoccurs annually, the other costs are one time.
Answer:
Statistics is used to determine what risk an insured poses to an insurance company, what percentage of policies is likely to pay out, and how much money a company can expect to pay out in claims
Answer:
market rates have increased
Explanation:
Bonds as well as brokered CDs are priced depending on the market's interest rates for similar investments. For example, the CD pays a 3% interest, and then the market rate increases to 3.1% (or more), the CD's price will decrease. On the other hand, if the market rates decrease to 2.9% (or less), the CD's price will increase.
