Reference no: EM131311611
1. Which of the following should be considered when a company estimates the cash flows used to analyze a proposed project?
The new project is expected to reduce sales of one of the company’s existing products by 5%.
The firm would borrow all the money used to finance the new project, and the interest on this debt would be $1.5 million per year.
The company has spent and expensed $1 million on R&D associated with the new project.
Since the firm’s director of capital budgeting spent some of her time last year to evaluate the new project, a portion of her salary for that year should be charged to the project’s initial cost.
2. Which of the following statements is correct?
Cannibalization is a type of externality that is not against the law, and any harm it causes is done to the firm itself.
If cannibalization is determined to exist, then this means that the calculated NPV considering cannibalization will be higher than the NPV that does not recognize these effects.
If a project can create employment in a slump area, firm should include such an externality in the NPV calculations.
If cannibalization exists, then the cash flows associated with the project must be increased to offset these effects. Otherwise, the calculated NPV will be biased downward.
|
What would be the primary keys for each
: What would be the primary keys for each of those? What would be the foreign keys among those to create the necessary relationships?
|
|
What are the issues facing dean at this point
: What are the issues facing Dean at this point in his development? Enumerate the risks and the protective factors that are present in his life. How would you, as his counselor, assess Dean's situation? What approaches could you take with this adoles..
|
|
Projecting and ensuring the reliability of a design
: Discuss ways of projecting and ensuring the reliability of a design.
|
|
Explan the typical types of unemployment in a economy
: Define unemployment and describe the typical types of unemployment in a economy. Research and identify the types of unemployment in the chosen economy.
|
|
Cannibalization is a type of externality
: Which of the following should be considered when a company estimates the cash flows used to analyze a proposed project? Cannibalization is a type of externality that is not against the law, and any harm it causes is done to the firm itself. If a proj..
|
|
Using dragon board routines
: Write a program to control the speed of a DC motor using the PWM. The speed of the motor should increase when SW2 is pressed and decrease when SW3 is pressed. (Using dragon board routines)
|
|
How more modern approaches contribute to your work
: Identify and explain what you believe are the most significant contributions of Gestalt, Person-centered, and the pragmatic approaches (behavioral, cognitive-behavioral, and reality therapy) to the practice of psychotherapy
|
|
Explain the importance of encryption
: Suppose an executive-level manager asked you to explain the importance of encryption. Detail the key points that you would use to justify the importance of using encryption during the overall security posture analysis of the executive-level manage..
|
|
Project evaluation and microsoft solutions framework
: Analyze the relationship between a Feasibility Study and a Cost-Benefit Analysis. Investigate the main reasons why both of these evaluations must tie to the organizational strategic plan. Suggest two (2) issues that an organization may face if the..
|