The macmillen company has equal amounts of low-risk, average-risk, and high-risk projects. the firm’s overall wacc is 12%. the cfo believes that this is the correct wacc for the company’s average-risk projects, but that a lower rate should be used for lower-risk projects and a higher rate for higher-risk projects. the ceo disagrees, on the grounds that even though projects have different risks, the wacc used to evaluate each project should be the same because the company obtains capital for all projects from the same sources. if the ceo’s position is accepted, what is likely to happen over time? 1. the company will take on too many high-risk projects and reject too many low-risk projects.2. the company will take on too many low-risk projects and reject too many high-risk projects.3. things will generally even out over time, and, therefore, the firm's risk should remain constant over time.4. the company's overall wacc should decrease over time because its stock price should be increasing.5. the ceo's recommendation would maximize the firm's intrinsic value.

answer/// equals both average variable cost and average total cost at their respective minimums;

the answers are

a, b, c, & e.

the amount of money you earn by working is your income.

the percentage of people actively looking for a job is called unemployment.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.