subject
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

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 21:30
What are the main advantages and disadvantages of organizing a firm as a c corporation? the advantages are: (select all the choices that apply.) a. there is no limit on the number of owners a c corporation may have, thus allowing the corporation to raise substantial amounts of capital. b. the life of the business can continue beyond the death of any of the owners. c. the corporation can use the assets of the owners to pay for corporate liabilities. this attracts smaller investors to the corporation. d. the liability of the owners is limited to the amount of their investment in the firm. the disadvantages are: (select all the choices that apply.) a. income to a c corporation is subject to double taxation, once at the corporate level and again when received by the owners in the form of a dividend. b. the life of the business usually ends with the death of any of the owners. c. the c corporation is more complicated and more expensive to set up than other business entities. d. corporate liabilities can be passed on to the share
Answers: 1
question
Business, 22.06.2019 06:40
Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.
Answers: 2
question
Business, 22.06.2019 08:30
Blank is the internal operation that arranges information resources to support business performance and outcomes
Answers: 2
question
Business, 22.06.2019 17:30
If springfield is operating at full employment who is working a. everyone b. about 96% of the workforce c. the entire work force d. the robots
Answers: 1
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
question
English, 15.09.2021 01:20
question
Mathematics, 15.09.2021 01:20
question
Mathematics, 15.09.2021 01:20