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Author Question: One method of accounting for systematic risk for a project involves identifying a publicly traded ... (Read 40 times)

aabwk4

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One method of accounting for systematic risk for a project involves identifying a publicly traded
  firm that is engaged in the same business as that project and using its required rate of return to
  evaluate the project.
 
  This method is referred to as
  A) scenario analysis. B) sensitivity analysis.
  C) the pure play method. D) the accounting beta method.

Question 2

The PMI, Inc. processes an estimated 200,000 checks per year from its customers. Total revenue
  collected by check is 40,000,000.
 
  The average float time until the funds are credited to PMI's
  checking account is 6 days. For an extra cost of  .06/check, PMI's bank will install a lock-box
  system that will reduce float time from 6 days to 2.5 days. If PMI earns 3.5 on its checking
  account, how much per check will PMI make if it uses the lock-box system?
  A) .005 B) .008 C) .006 D) .007


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Laurenleakan

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aabwk4

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Reply 2 on: Jul 10, 2018
Gracias!


blakcmamba

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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