Cedar Computer Systems Inc has two projects under consideration and a WACC of 10%. Project Alpha has a hurdle rate of 12% while project Beta has a hurdle rate of 8%
If project Alpha has an expected return of 11% and project Beta has an expected return of 11%, which project(s), if any, should the firm accept?
A) Project Alpha
B) Project Beta
C) Projects Alpha and Beta
D) Neither project should be accepted.
B
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For a maximization problem, assume that a constraint is binding. If the original amount of a resource is 4 lbs. and the range of feasibility (sensitivity range) for this constraint is from 3 lbs. to 6 lbs.,
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A disadvantage of written communication is that
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A. future employment clause. B. restraint of trade clause. C. employment-at-will agreement. D. covenant not to compete.