Answer:
Projects Y and Z
b. Projects W and Z
c. Projects W and Y
Explanation:
CAPM equation : Expected return = Risk free rate + Beta x (Expected market return - Risk free rate)
W = 4% + [0.85 x (11% - 4%)] = 9.95%
X = 4% + (0.92 x 7%) = 10.44%
Y = 4% + (1.09 x 7%) = 11.63%
Z = 4% + (1.35 x 7%) = 13.45%
Projects Y and Z have an expected return greater than 11%
b. Projects W and Z should be accepted because its expected return is higher than the IRR
c. Project W would be incorrectly rejected because the expected rate of return is less than the overall cost of capital (i.e. 9.95 is less than 11). But its expected rate of return is greater than the IRR
Y would be incorrectly accepted because its expected rate of return is greater than the overall cost of capital but its expected rate of return is less than the IRR
Answer:
The correct answer is the option C: the higher the price the higher the quantity that the sellers are willing to supply.
Explanation:
To begin with, to understand why the supply curve slopes upwards we need to understand that <u>there is a direct relationship</u> between the quantity that the suppliers are willing to sell and tha price of the product offered and therefore that when the price increases the amount that the suppliers will be willing to offer will increase due to that direct relationship and that is reason why the supply curve slopes upwards.
Answer:
The correct answer is the option D: Yes, if the old steering wheel would have damaged the boat.
Explanation:
To begin with, in the case presented Joel's brother seems to be quite pleasent with the fact that Joel is repairing the boat once year so that means that he does not need to take the boat in for regular maintenance so therefore that he saves money due to the work done by Joel. That is the reason why if the steering wheel would have damaged the boat if it was not replaced then the cost that Joel's brother would have paid in order to repair all the damaged done by the wheel would have been much greater than just the cost of the steering wheel itself. Moreover, it is quite understood that they both had a tacit agreement that has been there for many years so therefore that Joel's brother must pay him otherwise, plus if the new wheel improves the value of the boat as well.
Could be a lot of things like;
Replaceable
Necessities
Long Lasting