subject
Business, 12.08.2021 05:00 maksims32592

A company estimates that an average-risk project has a wacc of 10 percent, a below-average risk roject has a cost of capital of 8 percent, and an above-average risk project has a cost of capital of 15 percent. Which of the following independent projects should the company accept? a. Project A has average risk and an IRR = 9 percent.
b. Project B has below-average risk and an IRR = 8.5 percent.
c. Project C has above-average risk and an IRR = 11 percent.
d. All of the projects above should be accepted.
e. None of the projects above should be accepted.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 05:00
Xie company identified the following activities, costs, and activity drivers for 2017. the company manufactures two types of go-karts: deluxe and basic. activity expected costs expected activity handling materials $ 625,000 100,000 parts inspecting product 900,000 1,500 batches processing purchase orders 105,000 700 orders paying suppliers 175,000 500 invoices insuring the factory 300,000 40,000 square feet designing packaging 75,000 2 models required: 1. compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. in january 2017, the deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. assign overhead costs to each model using the single plantwide overhead rate.
Answers: 3
question
Business, 22.06.2019 10:10
Karen is working on classifying all her company’s products in terms of whether they have strong or weak market share and whether this share is in a slow or growing market. what type of strategic framework is she using?
Answers: 2
question
Business, 22.06.2019 10:20
Asmartphone manufacturing company uses social media to achieve different business objectives. match each social media activity of the company to the objective it the company achieve.
Answers: 3
question
Business, 22.06.2019 13:20
Suppose your rich uncle gave you $50,000, which you plan to use for graduate school. you will make the investment now, you expect to earn an annual return of 6%, and you will make 4 equal annual withdrawals, beginning 1 year from today. under these conditions, how large would each withdrawal be so there would be no funds remaining in the account after the 4th withdraw?
Answers: 3
You know the right answer?
A company estimates that an average-risk project has a wacc of 10 percent, a below-average risk roje...
Questions
question
Social Studies, 15.07.2019 05:50
question
Computers and Technology, 15.07.2019 05:50
Questions on the website: 13722361