Should a Project Be Accepted If It Offers an Annual

question 112

Multiple Choice

Should a project be accepted if it offers an annual after-tax cash flow of $1,250,000 indefinitely, costs $10 million, is riskier than the firm's average projects, and the firm uses a 12.5% WACC?

• A)Yes, since NPV is positive
• B)Yes, since a zero NPV indicates marginal acceptability
• C)No, since NPV is zero
• D)No, since NPV is negative NPV = -10 million + $1.25 million/.125
• = -10 + 10
• = 0

Comprehend the powers of administrative agencies and the basis for their creation, including the establishment of the first federal administrative agency.

Understand the limits on agency power and the statutory, political, and judicial constraints.

Grasp the publication process and effective dates for new agency rules and regulations.

Understand the principles of informal vs. formal rule-making processes within administrative agencies.