Why is it necessary to use risk-adjusted discount rates to appraise capital investments?
Question:
Why is it necessary to use risk-adjusted discount rates to appraise capital investments?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (6 reviews)
As we know the very fundamentals of the business The higher the risk the more is the return and vi...View the full answer
Answered By
Prashant Sharma
As I am DBF fro IUT , I have caliber to teach and full fill all academic needs like in teaching and training all the relevant subjects,preparations of assignments preparations of exams and any other problems related to educations, I give you very updated guidances and directions to our esteemed students.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
1. Define breakeven point. Why is the breakeven point important to managers? 2. Describe four different ways cost- volume- profit analysis could be useful to management. 3. The purchasing manager for...
-
Michelle Delatorre, the professional tennis player first introduced in the Integrative Problem in Chapter, has returned to your office at Balik and Kiefer to ask some questions about stock valuation...
-
Why is it necessary to use comparative balance sheets, a current income statement, and certain transaction data in preparing a statement of cash flows? Discuss.
-
You believe that oil prices will be rising more than expected, and that rising prices will result in lower earnings for industrial companies that use a lot of petroleum-related products in their...
-
How are joint ventures accounted for?
-
An Education Officer decides to collect data on the number of school-age children per family in a small town. Thirty families are selected at random and the number of school-age children recorded as...
-
In 2013, Thomas DePrince, a passenger aboard a cruise ship, visited the ships jewelry boutique, operated by Starboard Cruise Services, Inc. DePrince told the employees of the boutique that he was...
-
Reizenstein Technologies (RT) has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. As a result, RT is expected to experience a...
-
6. (a) Given == 2-23i.Find |=| and arg (=*). Hence, solve z=2-23i leave your answers in polar form. (b) Given that z = 1 + i is a root of the polynomial equation z4-4z3 +11z2 - 14z + 10 = 0. Find the...
-
Arm ABD is connected by pins to a collar at B and to crank DE. Knowing that the velocity of collar B is 16 in./s upward, determine (a) The angular velocity of arm ABD, (b) The velocity of point A....
-
How does the presence of inflation affect the appraisal of capital investments?
-
Explain how risk-adjusted discount rates are calculated.
-
Indium has a tetragonal structure with a0 = 0.32517 nm and c0 = 0.49459 nm. The density is 7.286 g/cm3, and the atomic weight is 114.82 g/mol. Does indium have the simple tetragonal or body-centered...
-
What is the activation energy of a process whose rate is observed to increase by afactor of four when the temperature is increased from room temperature (20 C) to 80 C? (5 pts) A first order chemical...
-
Assuming the current exit multiple of 6.0x is unchanged, what is the maximum entry amount (total enterprise value) you could pay for AXL and still earn a 27.0% IRR? Since we have maxed out our...
-
Wholefood, a U.S. retailer company, wishes to raise $1.5 million and is trying to decide between a domestic dollar bond issue and a Eurobond issue. The company received the following two offers from...
-
Describe how you contribute to workgroup Discuss: How you provide support to your team members? The ways you contribute constructively to workgroup goals and tasks How you share relevant...
-
John is looking to value a particular stock that is expected to pay the dividend of $1.15 at the end of each year for at least the next few years. John expects to to be able to sell the stock at the...
-
Use the information for Jenny Corporation in E18-16. Assume that the company reports accounting income of $155,000 in each of 2018 and 2019, and that there is no reversing difference other than the...
-
You are standing at x = 9.0 km and your assistant is standing at x = 3.0 km. Lightning bolt 1 strikes at x = 0 km and lightning bolt 2 strikes at x = 12.0 km. You see the flash from bolt 2 at t = 10...
-
Wolfgang Iser, the accountant of Starkuchen, wants to further examine the relative profitability of raisin cake and layered carrot cake. He questions the accuracy of the activity-based normal costing...
-
McCarthy Potatoes processes potatoes into chips at its highly automated Longford plant. For many years, it processed potatoes for only the retail consumer market where it had a superb reputation for...
-
McCarthy Potatoes processes potatoes into chips at its highly automated Longford plant. For many years, it processed potatoes for only the retail consumer market where it had a superb reputation for...
-
Cash 1,500 Accounts Receivable 2,000 Interest Receivable 100 Prepaid Insurance 1,600 Notes Receivable (long-term) 2,800 Equipment 15,000 Accumulated Depreciation 3,000 Accounts Payable 2,400 Accrued...
-
The ABC company needs a 2 year equipment. The equipment has zero salvage value and zero book value after 2 years. ABC's tax rate is 40%. ABC plans to lease the equipment under a guideline lease for 2...
-
Suppose your friend tells you that she recently purchased a 15-year $3,000.00 bond with a 5% coupon. A month later, she saw it quoted at 109:4, but she does not know what this means. You can tell by...
Study smarter with the SolutionInn App