Ask Question
BusinessBusiness
30 May, 17:24

Two projects, A and B, are analyzed using ranking present worth analysis with MARR at i%. It is found that PW (A). PW (B). If MARR is changed to (i 1 1) %, what will be the relationship between PW (A) and PW (B) ?

+4
Answers (1)
  1. 30 May, 19:12
    0
    Answer: The relationship between A and B project cannot be determined with the information given.

    Explanation: The relationship between PW (A) and PW (B) is the correlation between project A and Project B in a portfolio.

    This is not possible to be calculated with the information given.

    But an expression of calculating this is;

    PW is the present value of A and B projects.

    MARR is the minimum acceptable rate of return

    The calculate the correlation of the two project, divide MARR by the multiple of the two project.

    That is;

    Correlation = MARR : [PW (A) * PW (B) ]

    Therefore;

    Correlation = i11% : [PW (A) * PW (B) ]

    This shows that the relationship cannot be determined with the limited Information supplied.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Two projects, A and B, are analyzed using ranking present worth analysis with MARR at i%. It is found that PW (A). PW (B). If MARR is ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1914. It is now 2019. a. If your great grandfather invested $1,000 in 1914, how much would that investment be worth today?
Answers (1)
Which of the following describes an inferior good? A. When consumer income increases, the demand for tea increases. B. When consumer income decreases, the demand for public transit decreases. C.
Answers (1)
All else constant, if butter and margarine are substitute goods, then as the price of butter rises, a. the demand for margarine will fall b. the quantity of butter demanded will fall c. the demand for butter will fall d.
Answers (1)
The question "What information does a person or an organization have a right or a privilege to obtain?" is part of this ethical issue. a) Privacyb) Accuracyc) Accessibilityd) Perfectione) Property
Answers (1)
Explain what letters of the 'D. E. C. I. D. E' method stand for
Answers (1)
New Questions in Business
Zach returned $200 of merchandise to secret trails. his original purchase was $400, with terms 1/10, n/30. if justin pays the balance of his account after the discount period, how much should he pay?
Answers (2)
Which of the following characteristics lead to a downward-sloping demand curve?
Answers (1)
Suppose recent changes to immigration laws have decreased decreases the supply of immigrant labor, increasing increasing wages in manual labor occupations. how might this affect the market for construction
Answers (1)
Firm P, a noncorporate taxpayer, purchased residential realty in 1985 for $1 million. This year it sold the realty for $450,000. Through date of sale, Firm P deducted $814,000 accelerated depreciation on the realty.
Answers (1)
The checking account of a small healthcare business pays interest each day the balance in the account exceeds $1,000. The bank credits the account with the accumulated interest at the end of each month. How should the interest income be posted?
Answers (1)
Home » Business » Two projects, A and B, are analyzed using ranking present worth analysis with MARR at i%. It is found that PW (A). PW (B). If MARR is changed to (i 1 1) %, what will be the relationship between PW (A) and PW (B) ?
Sign Up Forgot Password?