An engineer told you that a project is economically acceptable when it’s rate of return equals or exceeds the corporation’s cost of capital. Is this correct? Explain your answer.

Q: What is the development of an internal rate-of-return criterion?

A: The metric used in capital budgeting help to assess the potential investments profit is known as IRR…

Q: What does the profitability index measure?

A: Profitability index shows the relationship between the costs and benefits of the proposed project.…

Q: An example of a stock variable is ________ and an example of a flow variable is ________. a.…

A: A stock variable refers to the variable and it is considered to be an independent in the time that…

Q: Does the scenario present an example of post-investment holdup? Your company took note of your…

A: Post investment holds up is the issue arises due to the improper writing of contract between the two…

Q: Match the concept according to their definition Prompts Submitted Answers Break-even point Choose a…

A: THE ANSWER IS GIVEN BELOW

Q: In your own words, describe the life-cycle cost concept. Why is the potential for achieving…

A: Life cycle cost LCC is an analysis that is used in selecting the alternatives which impacts both…

Q: MM’s Proposition I holds, minimizing the weighted average cost of capital (WACC) is the same as…

A: The firm exists in the market to maximize the profit. The short run objectives might be different…

Q: Explain how Life-Cycle Analysis can support cradle-to-cradle approaches to product creation

A: Life cycle analysis Life cycle analysis is a theory for measuring potential Environmental effects…

Q: The division of a large office services company that makes high-end copiers recently signed a…

A: Ans. Usually, a long term natured contract is signed taking into consideration that marginal…

Q: The significance of the internal rate of return (IRR) is that it tells the firm whether it should…

A: Investment is done by the investors. Before investing in a project, investors analyse the market…

Q: Describe the challenge for businesses surrounding return-on-investment calculations and employee…

A: Recruitment is the process of hiring new talent using different steps involved in the process.

Q: A motor vehicle assembly plant requires the use of both capital and labour. The Tesla manufacturing…

A: The answer to the question is as follows:

Q: Which of the following might be considered by top management of an organization when setting a…

A: The minimum attractive rate of return is the lowest possible internal rate of return that is the…

Q: How would an exogenous factor affect the demand/supply for real estate? (either positive or…

A: A variable that resides outside of the economic model is known as an exogenous variable. The value…

Q: “The higher the MARR, the higher the price that a company should be willing to pay for equipment…

A: The given statement “the higher the MARR (minimum required rate of return), the higher the price…

Q: Which of the four characteristics of general purpose technologies have the least impact on…

A: In economics, a general purpose technology can be considered bas more beneficial than the technology…

Q: Define the term weighted-average cost of capital?

A: The weighted average cost of capital shows the calculation of a firm's cost of capital, where each…

Q: Interest is considered a(n) A) explicit cost when the firm pays a bank to borrow money. B) implicit…

A: "Explicit costs is a out-of-the-pocket cost which is actually made by an individual/firm/business."…

Q: A motor vehicle assembly plant requires the use of both capital and labour.The Tesla manufacturing…

A: Diminishing returns are important principle of microeconomic analysis in case of consumption as well…

Q: Explain how unethical business practices degrade the quality of the experience a customer has with a…

A: The unethical business practices by the Corporates is a concept when the managers follow various…

Q: Describe the idea of cost of a life-cycle in your own terms. Why is the life-cycle cost savings…

A: In a market, when a product is produced, there are different types of cost incurred in converting…

Q: Multiple choice question and give a short explanation about your answer When the replacement cost is…

A: The question is based on the concept called Tobin's Q. Where the Tobin's Q is as follows,Q = Market…

Q: Which of the following conditions must hold true for the constant growth valuation formula to be…

A: The constant growth model is also known as the Gordon Growth Model. It is used to value the stocks.…

Q: Please identify which of the following does not constitute a barrier that makes it difficult for…

A: Option D.  Reduced transportation costs is NOT a barrier.  Government regulations can prevent firms…

Q: Differentiate between Capital Costs and Operating Costs?

A: The money value of goods and services consumed by the consumers and purchased by the producers is…

Q: Which best describes due diligence?     Having a standby amount of cash to open the restaurant.…

A: Due diligence is a process that involves doing an investigation, audit, or review to verify facts or…

Q: Eduardo has $7,000 in savings. His bank pays 6% interest per year on savings. He withdraws all of…

A: Economic costs = Direct costs + Opportunity cost.

Q: what specific cost is the normal rate of return to a company?

A: Total fixed cost is the cost that is fixed and remains the same over a period of time. The total…

Q: Shows the derivative function of: TC = 4Q² + 2Q + DC(Q) + FC, where TC = Total Cost, DC =…

A: To find the derivative function of total cost, we differentiate the total cost function with respect…

Q: you contributed $250 to an investment account at age 20, and assuming an average growth rate of…

A: An investment brings returns that increase the amount at the time of maturity or at the end period.…

Q: discuss (with example) the criteria to determine capital or current expences

A: A current expense is the expense which reoccurs after a short period. A capital expense provides…

Q: Describe the process of Capital-Expenditure Decisions made by an economic engineer?

A: Capital-Expenditure Decisions are the decisions that are made regarding long term planned…

Q: Which of the following statement is true? The present value of a given payment is lower the further…

A: According to the present value conecpt, the today's value of $1 is worth more than the future $1.…

Q: AT the profit maximizing level of input use, which of the follow ng are true a. MVP =0 O MVP = MIC…

A: MVP is the value of additional output in resulting from the use of one more unit of variable input…

Q: A ________________ operates directly between a saver with financial assets to invest and an entity…

A: The  аnswer  is-    finаnсiаl  intermediаry  ;  rаte  оf  return.

Q: You own a farm that requires spending of $93,318 to generate $275,393 per year. You discover that…

A: Given; Revenue generated= $275,393 Amount spend on farm= $93,318 It is discovered that the farm is…

Q: A vegetable producer is considering investing in an indoor hydroponic system. Which of the following…

A: In a market, lower discount rate implied less cost of borrowing money from the market.

Q: Determine the real rate of return for the project?

A: The Rate of return (ROR) on investment is the net loss or profit that an investor gets when he/she…

Q: Paradise Pottery had the following costs in May when production is 800 ceramic pots: materials,…

A: Fixed and variable costs When a company manufactures a product, it will incur two types of costs:…

Q: A person who keeps projects on-time and within-budget is called the _____________.

A: A project refers to a series of tasks, or steps which have to completed in order to reach an…

Q: Create a table and indicate whether the following costs are fixed costs or variable costs if the…

A: In any given period, fixed costs are consistent. Variable costs vary depending on how much output is…

Q: ISO 14001 can be applied to any organization in any sector. For instance, a public administration or…

A: 1 True ISO 14001:2015 can be used in any organization, and it would be regardless of any size, type…

Q: The discount rate when the net present value of a project is zero is called the rate of return…

A: The answer is as follow :

Q: During your first month as an employee at Greenfield Industries (a large drill-bit manufacturer),…

A: Hello, thank you for the question. Since there are multiple sub-part questions asked here, only the…

Q: During your first month as an employee at Greenfield Industries (a large drill-bit manufacturer),…

A: a. Alternatives: Work on the old machinaries, make some adjustment for producing new drill bits by…