Projects a and b are mutually exclusive and have normal cash flows. project a has an irr of 15% and b's irr is 20%. the company's cost of capital is 12%, and at that rate project a has the higher npv. which of the following statements is correct? a. assuming the timing pattern of the two projects' cash flows is the same, project b probably has a higher cost (and larger scale).b. assuming the two projects have the same scale, project b probably has a faster payback than project a. c. the crossover rate for the two projects must be 12%.d. since b has the higher irr, then it must also have the higher npv if the crossover rate is less than the cost of capital of 12%.e. the crossover rate for the two projects must be less than 12%.

The management of a private investment club has a fund of $250,000 earmarked for investment in stocks. to arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high risk (x), medium risk (y), and low risk (z). management estimates that high risk stocks will have a rate of return of 15%/year; medium risk stocks, 10%/year; and low risk stocks, 6%/year. the amount of money invested in low risk stocks is to be twice the sum of the amount invested in stocks of the other two categories. if the investment goal is to have a rate of return of 9% on the total investment, determine how much the club should invest in each type of stock. (assume that all the money available for investment is invested.)

Eliza works for a consumer agency educating young people about advertisements. instead of teaching students to carefully read advertisement claims, she encourages them to develop a strong sense of self and to keep their life goals and dreams separate from commercial products. why might eliza's advice make sense?

howard, fine, & howard is an advertising agency. the firm uses an activity-based costing system to allocate overhead costs to its services. information about the firm's activity cost pool rates follows: stooge company was a client of howard, fine, & howard. recently, 7 administrative assistant hours, 3 new ad campaigns, and 8 meeting hours were incurred for the stooge company account. using the activity-based costing system, how much overhead cost would be allocated to the stooge company account?