11. HydroGrow is considering building a new greenhouse in which to grow tomatoes. The board meets and decides that this is the right thing to do. Before they can put their plans into action, the interest rate increases. The present value of the future revenue from this investment project a. is now lower than it was before, and so Hydro Grow is less likely to build the building. b. is now lower than it was before, and so HydroGrow is more likely to build the building. c. is now higher than it was before, and so HydroGrow is less likely to build the building. d. is now higher than it was before, and so HydroGrow is more likely to build the building.

Answers

Answer 1

Answer:

a. is now lower than it was before, and so Hydro Grow is less likely to build the building.

Explanation:

The interest rate increase will reduce the net present value of the project as the lenders of fund will demand more interest and since the Weighted Average Cost of Capital of the project will increase. The increased WACC will cause the project to be more riskier and since the future benefit of the project will be reduced.


Related Questions

Smart tips for selling to business customers include all the following except: a. Emphasize various benefits that meet the differing needs and interests of each member of the buying center b. Offer fresh insight and ideas in e-mails and other correspondence c. Develop a marketing mix to satisfy the needs of the organization as well as the needs of individual purchasing managers d. Show appreciation by offering desirable gifts to purchasing managers e. Explain how products and services will reduce the firm's risk

Answers

Answer:

c. Develop a marketing mix to satisfy the needs of the organization as well as the needs of individual purchasing managers.

Explanation:

In order to have smart selling in business, one needs to have an emphasis on the various benefits that are offered by the product to the client. Such as on the sales of A/C one needs to offer insights and ideas to the buying customers, show appreciation by providing gifts to the purchasing managers.Even explain how the products and services can help boost profit. Rather than developing a marketing plan to meet the need of the customers as it is not their concern.

Mill Company began operations on January 1, 20X1, and recognized income from construction-type contracts under different methods for tax purposes and financial reporting purposes. Information concerning income recognition under each method is as follows: Year Tax Purposes Book Purposes 20X1 $ 400,000 $ 0 20X2 625,000 375,000 20X3 750,000 850,000 Required: Assume the income tax rate is 21% in all years and that Mill has no other temporary differences. In its December 31, 20X3, balance sheet, what amount of deferred income taxes should Mill report

Answers

Answer:

Deferred tax asset balance on  December 31, 20X3 =   $115,500

Explanation:

The computation of the amount of deferred income taxes should Mill report is shown below:

Year   Tax purpose   Book purpose   Difference   Deferred tax book

20X1     $400,000          $0                $400,000        $84,000

20X2    $625,000     $375,000         $250,000        $52,500

20X3     $750,000     $850,000        ($100,000)        ($21,000)

Deferred tax asset balance on  December 31, 20X3 =   $115,500

HELPPPPPPPP WIL MARK BRAINLIEST

What types of decisions affect the day-to-day activities of an operation?
Group of answer choices

Those involving new product development

Those involving process technology

Those involving planning and control

Those involving performance measurement

Answers

Answer:

those involving process technologies

Which of the following is a benefit of U.S. companies doing business
domestically instead of internationally?

A. Having to exchange currencies

B. Having familiarity with laws and regulations

C. Having to negotiate payment options with the world bank

D. Having to learn about different customs, taboos, and manners from different countries​

Answers

Answer:

A

Explanation:

One of the major drawbacks of international business is currency exchange rates. Since, economies are unpredictable, there is always an economic risk associated with international trade. A can get expensive or cheaper with the currency exchange rates of other countries. Leading to an unpredictable balance of trade.

However, this risk is not present in domestic business. So for U.S. companies doing business  domestically instead of internationally can save them from tremendous economies challenges caused by currency exchange rates.

Answer:

Having familiarity with law and regulations

Explanation:

_________ is the removal of items from a store with the intention of not paying for them.

a. shrinkage
b. shoplifting
c. control
d. none of the above

Answers

Answer:  lol that should be shoplifting

Shoplifting.........

If the labor force is 1000 workers, but 32 are unemployed, what is the unemployment percentage?

Answers

3.2% is the unemployment percentage, if the labor force is 1000 workers, but 32 are unemployed.

What is the reason of unemployment?

Unemployment is influenced by a lot of circumstances on both the demand and supply sides. Rising interest rates, a global recession, and a banking meltdown may all contribute to demand-side decreases. Underemployment and structural employment have a big impact in the supply side.

Thus, it is 3.2 percent.

For more details about reason of unemployment, click here:

https://brainly.com/question/9288794

#SPJ1

A cost-based contract is __________. ANSWER Unselected a document that authorizes a supplier to deliver a product or service and often includes key terms and conditions, such as price, delivery, and quality requirements Unselected a document containing terms and conditions for a purchased service that indicate, among other things, what services will be performed and how the service provider will be evaluated Unselected a type of purchasing contract in which the stated price does not change, regardless of fluctuations in general overall economic conditions, industry competition, levels of supply, market prices, or other environmental changes Unselected a type of purchasing contract in which the price of a good or service is tied to the cost of some key input(s) or other economic factors, such as interest rates

Answers

Answer:

a type of purchasing contract in which the price of a good or service is tied to the cost of some key input(s) or other economic factors, such as interest rates.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, cost-based contract, etc.

A cost-based contract is a type of purchasing contract in which the price of a good or service is tied to the cost of some key input(s) or other economic factors, such as interest rates.

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.

In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

Shelly Ford is starting a fashion boutique in an upscale mall near San Antonio. She wants to open her store during the time period in which a business like hers can realistically enter the new market. Shelly is trying to open her business while the ________ is open.

Group of answer choices

safe harbor

window of opportunity

portal of entry

doorway of opportunity

safety zone

Answers

Answer:

I cant understant

Explanation:

Can you just write it in a paper then pic it

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