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NEW QUESTION: 1
A company comprises several divisions.
One of these divisions was originally expected to earn an operating profit next year of $800,000 on net assets of $4 million.
However, the divisional manager is considering investing in a project that would generate a project return on investment (ROI) of 38% on additional net assets of $500,000.
What would be the divisional ROI next year if the project was implemented?
Give your answer to the nearest percentage.
Answer:
Explanation:
22 %

NEW QUESTION: 2

A. Option A
B. Option C
C. Option D
D. Option E
E. Option B
Answer: A,B,C

NEW QUESTION: 3
Investors earn an equilibrium rate of return corresponding to the
A. the non-diversifiable risk of a security.
B. the total risk of a security.
C. the variance of a security's return.
Answer: A
Explanation:
The market prices securities according to their non-diversifiable or market risk. Market risk is based on the covariance between the security and the market portfolio in the presence of the risk-free security.

NEW QUESTION: 4
You work as a project manager for BlueWell Inc. Your project requires the project team to paint 1,500 hotel rooms. Your project team reports that it will take them approximately 4 hours to paint each hotel room. You reason, then, that it will take 6,000 hours to paint all of the hotel rooms. What type of an estimate are you creating in this scenario?
A. Definitive estimate
B. Bottom-up estimate
C. Parametric estimate
D. Analogous estimate
Answer: C
Explanation:
Explanation/Reference:
Explanation:
This is an example of a parametric estimate. This estimate type uses a parameter, such as four hours of painting per hotel room, and multiplies this value across the total number of units, such as 1,500 rooms. A parametric estimate is an estimate that uses a parameter to predict the costs of the project, such as cost per network drop or cost per software license. Parametric estimating technique utilizes the statistical relationship that exists between a series of historical data and a particular delineated list of other variables.
Incorrect Answers:
B: A definitive estimate type accounts for the duration or costs of each work package in the WBS.
C: An analogous estimate type uses a similar project's duration as a basis for the current project's estimate duration.
D: A bottom-up estimate, also known as a definitive estimate, accounts for the duration or costs of each work package in the WBS.