Question
Question 11 (1 point) A large oil company is looking at capitalizing on a large oil reserve that has been discovered in a foreign country.
Question 11 (1 point) A large oil company is looking at capitalizing on a large oil reserve that has been discovered in a foreign country. The capital project to extract this oil would involve many risks and uncertainties for the company. Which of the following is not an effective means of mitigating the risk prior to initiating a capital project? Question 11 options: Prepare a detailed scenario analysis. Insert real elements into the discounted cashflow analysis of the project. Offer monetary compensation to those in political power to ensure access. Consider a joint venture with a local company. Insert real elements into the discounted cashflow analysis of the project. Question 12 (2 points) Bradbo owned two adjoining restaurants, the Pork Palace and the Chicken Hut. Each restaurant was treated as a profit center for performance evaluation purposes. Although the restaurants had separate kitchens, they shared a central baking facility. The principal costs of the baking area included materials, supplies, labor, and depreciation and maintenance on the equipment. Bradbo allocated the monthly costs of the baking facility to the two restaurants based on the number of tables served in each restaurant during the month using dual allocation and equal sharing of fixed costs. In April, the costs were $30,000, of which $16,000 were fixed. The Pork Palace served 4,400 tables, while the Chicken Hut served 3,600 tables. The amount of joint cost that should have been allocated to the Pork Palace in April is calculated to be: Question 12 options: $8,000. $22,000. $15,700. $14,300. $18,000.
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