question archive Question 6 Not yet answered Marked out of 4
Question 6 Not yet answered Marked out of 4
Subject:FinancePrice:2.86 Bought3
Question 6 Not yet answered Marked out of 4.00 p Flag question D. Try to choose the correct answer, note that four wrong answers will cancel one correct answer (i.e. each wrong answer will be penalized by -1 pt.): [ 4 pts. ] Tuggle, Inc., which manufactures rigid shaft couplings has $1,150,000 to invest. The company is considering three different projects that will yield the following rates of return. If Tuggle's MARR is 15% per year and it invests in all three projects, which of the following value is closest to the rate of return that the company will make? Projects ? Y Z Initial Investment, (S) 200,000 125,000 825,000 Rate of Return, (%) 40 16 32 Select one: a. 34 b. 32 C. 37 d. 30
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Ans : Correct Option (b) 32%
| Stock | Invested | Weights(a) | Return | Expected Return |
| (Price /Total) | (b) | (a*b) | ||
| X | 200000 | 0.173913043 | 40 | 6.956521739 |
| Y | 125000 | 0.108695652 | 16 | 1.739130435 |
| Z | 825000 | 0.717391304 | 32 | 22.95652174 |
| 1150000 | 1 | 31.65217391 |
