Business, 29.11.2019 03:31 ani61

Afirm is considering a new project whose risk is greater than the risk of the firm's average project, based on all methods for assessing risk in evaluating this project, it would be reasonable for management to do which of the following?
a. increase the estimated irr of the project to refilect its greater risk
b. increase the estimated npv of the project to reflect its greater risk
c. reject the project, since its acceptance would increase the firm's risk
d. ignore the risk differential if the project would amount to only a smal fraction of the firm's total assets
e. increase the cost of capital used to evaluate the project to reflect its higher- than-average risk e

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 01:30

The gomez company, a merchandising firm, has budgeted its activity for december according to the following information: • sales at $500,000, all for cash. • merchandise inventory on november 30 was $250,000. • the cash balance at december 1 was $20,000. • selling and administrative expenses are budgeted at $50,000 for december and are paid for in cash. • budgeted depreciation for december is $30,000. • the planned merchandise inventory on december 31 is $260,000. • the cost of goods sold represents 75% of the selling price. • all purchases are paid for in cash. the budgeted cash disbursements for december are:

Answers: 3

Answer

Business, 22.06.2019 11:10

Use the information below to answer the following question. the boxwood company sells blankets for $60 each. the following was taken from the inventory records during may. the company had no beginning inventory on may 1. date blankets units cost may 3 purchase 5 $20 10 sale 3 17 purchase 10 $24 20 sale 6 23 sale 3 30 purchase 10 $30 assuming that the company uses the perpetual inventory system, determine the gross profit for the month of may using the lifo cost method.

Answers: 1

Answer

Business, 22.06.2019 13:10

The textbook defines ethics as “the principles of conduct governing an individual or a group,” and specifically as the standards one uses to decide what their conduct should be. to what extent do you believe that what happened at bp (british petrolium) is as much a breakdown in the company’s ethical systems as it is in its safety systems, and how would you defend your conclusion?

Answers: 2

Answer

Business, 22.06.2019 20:00

Experienced problem solvers always consider both the value and units of their answer to a problem. why?

Answers: 3

Answer

You know the right answer?

Afirm is considering a new project whose risk is greater than the risk of the firm's average project...

Questions