Your physics homework can be a real challenge, and the due date can be really close - feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Our experts will gladly share their knowledge and help you with programming homework. Keep up with the world's newest programming trends.
Get a free quote.
Check the website
for updates.
Receive your completed assignment.
Easy as ABC!
Just provide us with clear instructions and wait for the completed assignment.

Answer on Economics of Enterprise Question for LaMarcus Streeter

Question #6214

2. LaPango Inc. estimates that its average-risk projects have a WACC of 10%, its below-average risk projects have a WACC of 8%, and its above-average risk projects have a WACC of 12%. Which of the following projects (A, B, and C) should the company accept?

a. Project B, which is of below-average risk and has a return of 8.5%.
b. Project C, which is of above-average risk and has a return of 11%.
c. Project A, which is of average risk and has a return of 9%.
d. None of the projects should be accepted.
e. All of the projects should be accepted.

Expert's answer

Answer is A. When selecting from several different projects with Internal rate of return (IRR), selected project is with a maximum value of IRR of the same class. Thus Project B is the only one that has a return of 8.5% that is greater than projects of the same risk class.

Comments

No comments

Leave a comment

Related Questions

Link to us

Share with friends

Get homework help with Assignment Expert:
free questions
Questions and Answers
approved by clients
I was satisfied by how fast the assignment was delivered to me. Overall you guys did a very good job especially the tutor. I will recommend your website to my other friends. Keep up the good work!
Sadaf on June 2011
solving policy
solving policy
satisfaction
guarantee
paypal
Pay us safely via PayPalPayPal
We deliver professional assignment and homework help for students in USA, UK, Canada, Australia, AE and all over the world.
Terms and Conditions | Privacy Policy | Service
© 2014 BrainRouter LTD. All rights reserved.