Answer:
C) Net present value and internal rate of return
Explanation:
Of the methods discussed, cash payback and average rate pf return does not take into account the time value of money. Cash payback and ARR basically only use the cash flows and profits in relevance to the investment.
Net present value as the name suggests, discounts these cash flows and then subtracts the initial outlay costs and Internal rate of return also discounts the project cash flows so that they equal zero. Thus these two are the options that take into account the time value. IRR often is calculated by discounting cash flows at different rates until the NPV = 0.
Hope that helps.
Answer:
The correct answer is "$28.03".
Explanation:
The given values are:
Good purchase,
= $25
Dividend,
= $1.40
Annually earning,
= 5%
Beta coefficient,
= 1.3
Treasury bills,
= 1.4%
Now,
= 
= 
= 
(%)
hence,
The fair value will be:
= 
= 
Absolutely, the proposal including its brokerage must be adopted because as fair market value was almost $25.
The company should accept the special order because it will get an additional profit of $4,000 ($12,500 - $7,500 - $1,000) for the special order. This additional profit amount can be acquired by separating the effect from the special order on each cost and sales of the company's business. The sales should increase by $12,500 ($5 x 2500 unit) amount if the job is taken and the variable cost should increase by $7,500 ($3 x 2500 unit). Lastly, the fixed cost should increase by $1,000 (the new machine).
Answer:
Accepted and rejected
Explanation:
Since the internal rate of return is 13.09% and the WACC is 12.68%
As we can see that the internal rate of return is higher than the WACC as WACC is considered as the discount rate
So the project should be accepted
And, if CAPM is used
So, the expected rate of return is
If CAPM is used
Risk-free rate of return + Beta × market risk premium
= 2.9% + 1.42 × 8.1%
= 2.9% + 11.502%
= 14.40%
And, The Internal rate of return = 13.09%
Since the internal rate of return is less than the expected rate of return therefore the project should be rejected
Answer: Threat
Explanation:
The threat is one of the important factor in the SWOT analysis that is basically used for analyzing the main causes of the damages in an organization, products and the venture. The threats can be defined as external or in a negative way.
The SWOT is stand for the strengths, weaknesses, opportunities, and the threats and these are the techniques for evaluating the four main aspects of the business.
According to the given question, the implementation of the new government regulations are reducing the availability of the raw materials and this is known as the external organization threat in the given SWOT analysis.
Therefore, Threat is the correct answer.
