Taussig technologies is considering two potential projects

Assignment Help Accounting Basics
Reference no: EM13607711

Taussig Technologies is considering two potential projects, X and Y. In assessing the projects' risks, the company estimated the beta of each project versus both the company's other assets and the stock market, and it also conducted thorough scenario and simulation analyses. This research produced the following data: Project X Project Y Expected NPV $350,000 $350,000 Standard deviation (?NPV) $100,000 $150,000 Project beta (vs. market) 1.4 0.8 Correlation of the project cash flows with cash flows from currently existing projects. Cash flows are not correlated with the cash flows from existing projects. Cash flows are highly correlated with the cash flows from existing projects. Which of the following statements is CORRECT?

a. Project X has more stand-alone risk than Project Y.

b. Project X has more corporate (or within-firm) risk than Project Y.

c. Project X has more market risk than Project Y.

d. Project X has the same level of corporate risk as Project Y.

e. Project X has less market risk than Project Y.

Reference no: EM13607711

Questions Cloud

Yoder co sells maintenance contracts to the purchasers of : yoder co. sells maintenance contracts to the purchasers of the equipment they sell. the cost of the contract is 1450
A point source of light illuminates an aperture 400 away a : a point source of light illuminates an aperture 4.00 away. a 18.0 -wide bright patch of light appears on a screen 2.00
A recent income statement of walmart reports sales of : a recent income statement of walmart reports sales of 405046 million and cost of goods sold of 304657 million for the
A group of students at a school take a history test the : a group of students at a school take a history test. the distribution is normal with a mean of 25 and a standard
Taussig technologies is considering two potential projects : taussig technologies is considering two potential projects x and y. in assessing the projects risks the company
The mean of the 80 heights is 632 in and the mean of the 80 : a sample of 80 women is obtained and their heights in inches and pulse rates in beats per minute are measured. the
Clary jensen farms purchased power equipment with an : clary jensen farms purchased power equipment with an expected useful life of four years or 1000 hours of usage. the
Haras corporation is a wholesaler that sells a single : haras corporation is a wholesaler that sells a single product. management has provided the following cost data for two
The distribution of the sat scores in math for an incoming : the distribution of the sat scores in math for an incoming class of business students has mean of 580 and standard

Reviews

Write a Review

Accounting Basics Questions & Answers

  Fixed assets are the primary asset of old line

fixed assets are the primary asset of old line manufacturing company old line. as of december 2011 old line is having

  At a sales volume of 41000 units thoma corporations sales

at a sales volume of 41000 units thoma corporations sales commissions a cost that is variable with respect to sales

  Determining the units of product in inventory

The company's net income for the year was $12,000 higher under variable costing than under absorption costing. Given these facts, the number of units of product in inventory at the beginning of the year must have been:

  A contract with the local agency of a national service

60. Mason R. and Lily B. Hill, married and ages 34 and 32, live at 2240 Poplar Drive, Apt. 12, Louisville, KY 40241. Their Social Security numbers are 123-45-6789 and 123-45-6788, respectively.

  Riverdale printing company prints limited edition art books

riverdale printing company prints limited edition art books with production runs of 15000 to 100000. it has recently

  Find the present values of the cash flow streams

Find the present values of the following cash flow streams. The appropriate interest rate is 8%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows.

  Find the mean for the given sample data unless indicated

find the mean for the given sample data. unless indicated otherwise round your answer to one more decimal place than is

  What is the most profitable sales mix for the foam pet

Foam Pet Mattress Company can sell as many pet bed models A and B that it can produce, but the company has limited production capacity. It can produce two units of A or three units of B per hour and it has 4,000 production hours available.

  Management team met their bonus goals this month something

how would the following be journalized?management team met their bonus goals this month something they havent done

  Why is data security important now more than ever

Why is data security important now more than ever? What are some of the steps that we can take to ensure that our database is protected and secure? How can you use user views to enhance security and restrict access?

  Accounting record and financial information

An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased a..

  A centrifugal pump is needed in a food processing plant has

a centrifugal pump is needed in a food processing plant has a first cost of 250000. use both the sum of years digit

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd