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Alik [6]
3 years ago
7

If Marriott used a single corporate hurdle rate for evaluating investment opportunities in each of its lines of business, what w

ould happen to the company overtime?
Business
1 answer:
jolli1 [7]3 years ago
5 0

Answer:

Explanation:

If a company(Marriott in this case) uses a single hurdle rate to decide whether an investment should be undertaken or not, some projects that need to be accepted would end up being rejected and vice versa. For example,

if Marriott's hurdle rate is 10% and it's evaluating

project A with a 15% cost of capital &

project B with a 6% cost of capital .

Evaluation:

Project A would probably lead to a negative NPV because the cost of capital is higher (meaning it is riskier than the firm) hence could be rejected, but using the company hurdle rate of 10% to evaluate it could make its NPV positive. This would ignore the actual additional risk of the project.

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Identify a cost driver that may be used to assign each cost pool to each line of snowmobiles. Budgeted Costs Cost Driver Machine
Norma-Jean [14]

Explanation:

The identification of the cost driver is presented below:

This identification is required so that the indirect cost can be allocated according to the each cost pool

Machine setup, indirect materials = Number of setups

Inspections = Number of inspections

Test = Number of test

Insurance, plant = Machine hours or square feet

Engineering design = Engineering Hours

Depreciation, machinery = Machine hours

Machine setup, indirect labor = Number of setups

Property taxes = Machine hours or square feet

Oil, heating = Machine hours or square feet

Electricity, plant lighting = Machine hours or square feet

Engineering prototypes = Engineering Hours

Depreciation, plant = Machine hours or square feet

Electricity, machinery  = Machine hours

Machine maintenance wages = Number of machines or machine hours

7 0
2 years ago
Are there any truly free dating websites
sergejj [24]
Honestly not really unless youre into match or something like that but match is basically just a app that most people use to find casual sex.
7 0
2 years ago
What functions would it be most important for a project management software program to have?
Mariana [72]

Answer:

Explanation:

Question

Rocks around mid-oean risend automatic updates to the project teamhow earthquakes happen  

create calendars and schedules, manage project budgets, an

create calendars and schedules, manage project budgets, and enable file sharing

create images for storyboarding, collect project images, and enable file sharing

create to-do lists, manage schedules, and send automatic updates to the project teamd enable file sharing

create images for storyboarding, collect project images, and enable file sharing

create to-do lists, manage schedules, and send automatic updates to the project team

C. changes in the earth's crust

create calendars and schedules, manage project budgets, and enable file sharing

create images for storyboarding, collect project images, and enable file sharing

create to-do lists, manage schedules, and send automatic updates to the project team

5 0
3 years ago
Pacific Packaging's ROE last year was only 3%, but its management has developed a new operating plan that calls for a debt-to-ca
777dan777 [17]

Answer:

Explanation:

Total asset turnover = Sales/total assets

3.2= 14000000/Total assets

Total assets = 4375000

E/A = 1-D/A = 1-0.45 = 0.55

Equity = E/A*assets = 0.55*4375000=2406250

Net income = (EBIT-interest)*(1-tax rate)

=(1344000-546000)*(1-0.25)=598500

ROE = Net income/total equity

ROE% = 598500/2406250=0.248

ROE% = 24.8

6 0
2 years ago
As a manager for your company some of your responsibilities include measuring metrics and overseeing company strategies. You obs
Ilya [14]

Answer:

The primary reason for the large increase in productivity would be the management factor.

Explanation

An important factor that affects the productivity in a company is the management that can have a great influence as good managers that are competent, make a good use of the resources, implement good strategies and develop good relationships with employees generating a good working environment help increase the productivity. According to the question, this is the main reason that can be inferred.

8 0
3 years ago
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