Should i accept or reject the project

Assignment Help Business Economics
Reference no: EM132084392

Division A (Low Risk) WACC = 7%

Division B (High Risk ) WACC = 13%

2 division has composite WACC of 12%

Division B considering a project with expected return = 12%

  1. Should I accept or reject the project?
  2. Accept or reject decision base? rejected the return is less than risk based or accept the return is greater thank risk based?

Reference no: EM132084392

Questions Cloud

What asci codes would represent those characters : If the two-digit number were to be stored in an ASCII (text file as character 4 followed by character 5, what ASCI codes would represent those characters?
Centralized organization structure-decentralized one : What are the advantages of a centralized organization structure vs. a decentralized one? What are the disadvantages?
Current price of mummeball common stock : If the required rate of return on this stock (ks) is 12%, what is the current price of Mummeball's common stock?
How many positive 4-digit elegant numbers exist : How many positive 4-digit elegant numbers exist? Some numbers to include are 1345, 5999, 6554, and 7828.
Should i accept or reject the project : Accept or reject decision base? rejected the return is less than risk based or accept the return is greater thank risk based?
Write a mars program that can perform conversions : Write a MARS program that can perform conversions between binary, decimal, and hexadecimal representations for positive integers (under 32 bits).
What earnings before interest and tax : What earnings before interest and tax (EBIT) must the firm have if it were to provide $1 per share to the shareholders? Assume perfect markets.
How to convert the ebit to free cash flow : How to convert the EBIT to free cash flow for the next 12 years?
Cash flow of the loan from the borrower perspective : Calculate (a) The cash flow of the loan from the borrower's perspective (b) The amount of the annual principal repayment (c) The stream of interest payments

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd