Suppose randy jones plans to invest $1,000. he can earn an effective annual rate of 5% on security a, while security b has an effective annual rate of 12%. after 11 years, the compounded value of security b should be somewhat less than twice the compounded value of security a. (ignore risk, and assume that compounding occurs annually.)

Alpha industries is considering a project with an initial cost of $8 million. the project will produce cash inflows of $1.49 million per year for 8 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. the debt–equity ratio is .60 and the tax rate is 35 percent. what is the net present value of the project?

Performance bicycle company makes steel and titanium handle bars for bicycles. it requires approximately 1 hour of labor to make one handle bar of either type. during the most recent accounting period, barr company made 7,700 steel bars and 2,300 titanium bars. setup costs amounted to $35,000. one batch of each type of bar was run each month. if a single company-wide overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be:

The face of a company is often that of the lowest paid employees who meet the customers. select one: true false