Business
Business, 31.10.2019 16:31, Yeajay6313

If you could borrow all the money you need for a project at 6.5%, does that mean that the cost of capital for this project is going to be 6.5%?

answer
Answers: 2
Show answers

Similar questions

Предмет
Business, 04.11.2019 22:31, joewiii10
The cost of capital for two mutually exclusive projects that are being considered is 12%. project k has an irr of 20% while project r's irr is 15%. the projects have the same npv at the 12% current cost of capital. interest rates are currently high. however, you believe that money costs and thus your cost of capital will soon decline. you also think that the projects will not be funded until the cost of capital has decreased, and their cash flows will not be affected by the change in economic conditions. under these conditions, which of the following statements is correct? a. you should delay a decision until you have more information on the projects, even if this means that a competitor might come in and capture this market.b. you should recommend project r, because at the new cost of capital it will have the higher npv.c. you should recommend project k, because at the new cost of capital it will have the higher npv.d. you should recommend project r because it will have both a higher irr and a higher npv under the new conditions.e. you should reject both projects because they will both have negative npvs under the new conditions.
Answers: 3
continue
Предмет
Business, 04.11.2019 23:31, shrafe
Lancaster corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. project a has an irr of 11%, while project b's irr is 14%. when the cost of capital is 8%, the projects have the same npv. given this information, which of the following statements is correct? a. if the cost of capital is 9%, project a's npv will be higher than project b's.b. if the cost of capital is 6%, project b's npv will be higher than project a's.c. if the cost of capital is greater than 14%, project a's irr will exceed project b's.d. if the cost of capital is 9%, project b's npv will be higher than project a's.e. if the cost of capital is 13%, project a's npv will be higher than project b's.
Answers: 3
continue
Предмет
Business, 07.11.2019 22:31, dbautis25
Which of the following statements is correct? assume that all projects being considered have normal cash flows and are equally risky.a. if a project's irr is equal to its cost of capital, then under all reasonable conditions, the project's irr must be negative.b. if a project's irr is equal to its cost of capital, then under all reasonable conditions the project's npv must be zero.c. there is no necessary relationship between a project's irr, its cost of capital, and its npv.d. when evaluating mutually exclusive projects, those projects with relatively long lives will tend to have relatively high npvs when the cost of capital is relatively high.e. if a project's irr is equal to its cost of capital, then, under all reasonable conditions, the project's npv must be negative.
Answers: 1
continue
Do you know the correct answer?
If you could borrow all the money you need for a project at 6.5%, does that mean that the cost of ca...

Questions in other subjects:

Konu
History, 23.10.2020 16:40
The mayor and city council run the government. The city council oversees all areas of government. The mayor is influential. The type of government described in t...
Konu
History, 23.10.2020 16:40
What might workers hope to gain by joining a union in 2020?...
Konu
Mathematics, 23.10.2020 16:40
2 What features do all right triangles have in common? A Two legs and a hypotenuse B Two equal sides and two equal angles C Two 90-degree angle...
Konu
Mathematics, 23.10.2020 16:40
The area of a triangle is always one half the base b times the height h. If the base is represented by the expression 4x + 2 and the height is represented by 3x, which expression g...
Konu
Mathematics, 23.10.2020 16:40
What is the slope of this line?...
Konu
Chemistry, 23.10.2020 16:40
The temperature of water in a container was 60 degrees Celsius. Ten minutes later, the water temperature was 35 degrees Celsius. What was the rate of cooling of the water?...
Konu
History, 23.10.2020 16:40
What caused tension between the upper middle class and the aristocracy?...
Konu
Mathematics, 23.10.2020 16:40
Nicholas sold pounds of shrimp in 4 hours. So, he sells shrimp at a rate of pounds of shrimp per hour. At this rate, he would sell pounds of shrimp in 9 hours. WILL RECIEVE BRAINL...
Konu
English, 23.10.2020 16:40
The MVP Lorenzo had been the star of the Broncos football team ever since the first grade. His teammates knew he was the Most Valuable Player, even when the coach gave the award t...
Konu
Physics, 23.10.2020 16:40
What is the purpose of the mitochondria...
Other tasks in the category: Business More task
See results (0)