Business, 08.03.2021 19:30 cutie777

Assume that a firm is considering building a factory that will cost $5 million. It believes that it can get a profit from this factory of $600,000 per year for many years. The annual interest rate at which the firm can borrow money is 15 percent. After evaluating whether it should build the factory, the firm decides that it should: a. build because the annual rate of return on the factory is 35 percent.
b. not build because the annual rate of return on the factory is only 6 percent.
c. build because the annual rate of return on the factory is 30 percent.
d. not build because the annual rate of return on the factory is only 12 percent.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 01:40

Kis the insured and p is the sole beneficiary on a life insurance policy. both are involved in a fatal accident where k dies before p. under the common disaster provision, which of these statements is true?

Answers: 1

Answer

Business, 22.06.2019 11:30

Marta communications, inc. has provided incomplete financial statements for the month ended march 31. the controller has asked you to calculate the missing amounts in the incomplete financial statements. use the information included in the excel simulation and the excel functions described below to complete the task

Answers: 1

Answer

Business, 22.06.2019 15:40

The cost of direct labor used in production is recorded as a? a. credit to work-in-process inventory account. b. credit to wages payable. c. credit to manufacturing overhead account. d. credit to wages expense.

Answers: 2

Answer

Business, 22.06.2019 19:00

Andy purchases only two goods, apples (a) and kumquats (k). he has an income of $125 and can buy apples at $5 per pound and kumquats at $5 per pound. his utility function is u(a, k) = 6a + 2k. what is his marginal utility for apples and his marginal utility for kumquats? andy's marginal utility for apples (mu subscript a) is mu subscript aequals 6 and his marginal utility for kumquats (mu subscript k) is

Answers: 2

Answer

You know the right answer?

Assume that a firm is considering building a factory that will cost $5 million. It believes that it...

Questions