The higher the minimum rate of return desired, the higher the price that a company will be
Question:
"The higher the minimum rate of return desired, the higher the price that a company will be willing to pay for cost-saving equipment." Do you agree? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (11 reviews)
No A higher minimum desired rate of return reduces the presen...View the full answer
Answered By
Danish Sohail
My objective is to become most reliable expert for clients. For last 10 years I have been associated with the field of accounting and finance. My aim is to strive for best results and pay particular attention to client needs. I am always enthusiastic to help clients for issues and concerns related to business studies. I can work on analysis of the financial statements, calculate different ratios and analysis of ratios. I can critically evaluate stock prices based on the financial analysis and valuation for companies using financial statements of the business entity being valued with use of excel tools. I have expertise to provide effective and reliable help for projects in corporate finance, equity investments, financial accounting, cost accounting, financial planning, business plans, marketing plans, performance measurement, budgeting, economic research, risk assessment, risk management, derivatives, fixed income investments, taxation, auditing, and financial performance analysis.
4.80+
78+ Reviews
112+ Question Solved
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Question Posted:
Students also viewed these Business questions
-
What is the basic flaw in the payback model?
-
Banerjee Company expects to receive $200 at the end of each of the next five years and an additional $1,000 at the end of the fifth year. Therefore, the total payments will be $2,000. What is the NPV...
-
Suppose the Norlo Canadian Pacific Railway is considering replacement of a power jack tamper, used for maintenance of track, with a new automatic raising device that can be attached to a production...
-
Smart Sets manufactures headphone cases. During September 2016, the company produced 108,000 cases and recorded the following cost data: Requirements 1. Compute the cost and efficiency variances for...
-
The strings of an electric guitar are made of ferromagnetic metal. The pickup consists of two components. A magnet causes the part of the string near it to be magnetized. The vibrations of the string...
-
How are triple integrals in rectangular coordinates evaluated? How are the limits of integration determined? Give an example.
-
How does make determine whether a target needs to be rebuilt?
-
Wilco Corporation has the following account balances at December 31, 2012. Share capitalordinary, $5 par value ....$ 510,000 Treasury shares ..............90,000 Retained earnings...
-
x- 70 mm y 20 mm Eample 6: Determine the moment of inertia for the following area about its x centroidal axis. 40 mm 30 mm. X 25
-
Refer to the chapter discussion of Enriquez Machine Parts Company beginning on page 534. Suppose Enriquez decided to use only one overhead cost pool for both departments with machine hours as the...
-
Can net present value ever be negative? Why?
-
"Not-for-profit organizations do not use DCF because their cost of capital is zero." Do you agree? Explain.
-
Describe the substantive tests of balances that are conducted for the acquisition and expenditure process. Identify the assertions associated with the tests.
-
An athlete swings a 4.00-kg ball horizontally on the end of a rope. The ball moves in a circle of radius 0.670 m at an angular speed of 0.620 rev/s. (a) What is the tangential speed of the ball? (No...
-
The break-even point in pricing is the point where costs and expenses are equal to revenue. A break-even analysis can be performed to help determine the lowest level at which to set a selling price...
-
What is the advantage of selling a bond to a group of investors as opposed to selling stock in the company when it comes to raising capital? What is the difference between a Bond Premium and a Bond...
-
1) Determine the wavelength (in cm) in Teflon ( = 1, &, = 2.1) at 434 MHz. NOTE: Round the result to nearest integer without decimal 1 point 2) The physical dimension in wavelength of 5 ft PVC ( = 1,...
-
List and explain the circumstances that can excuse performance of a contract.
-
Determine the x coordinate of the centroid of the trapezoid shown in terms of h1, h2, and a.
-
Calculate the electrical conductivity of a fiber-reinforced polyethylene part that is reinforced with 20 vol % of continuous, aligned nickel fibers.
-
Revenue on an accrual-accounting basis must be both earned and realized (or realizable) before accountants recognize it in the income statement. Companies recognize revenue in cash-basis accounting...
-
The FASB and IASB both state that relevance and faithful representation are crucial concepts for financial reporting. Why are these concepts so important?
-
This is an exercise on the relationships among assets, liabilities, and ownership equities. 1. Prepare an opening balance sheet of 2. Purchase inventory for $500 cash. Prepare a balance sheet. A...
-
Suppose the North Carolina University system tests the idea that computerization of statistics classes increases student performance in the courses. If the computers are found to have a beneficial...
-
M. Handy is a self-employed painter who earned $32,400 last year. Her FICA tax rate is 15.3% of her earnings. How much FICA tax did she pay?
-
Using the same iThe Shouldice Hospital specializes in hernia operations. They have a special procedure that not only has a much higher rate of long-term success than other hospitals, but also allows...
Study smarter with the SolutionInn App