Question 181
Company B is considering a capital investment project. The appropriate discount rate for the project is WACC = 5.25%. The project has the following NPV and IRR: NPV = - $4,250,000 IRR = 3.01%.
Which of the following statements is true?
I). The project should be accepted since IRR WACC
II). The project should be accepted since NPV 0.
Which of the following statements is true?
I). The project should be accepted since IRR WACC
II). The project should be accepted since NPV 0.
Question 182
Information regarding the defined-benefit pension plan of Tri Cities Transport included the following for 2003 ($ in millions):
Service cost: 48. Interest cost: 32.Actual and expected return on plan assets: 26. Amortization of unrecognized net gain: 3. Amortization of unrecognized prior service cost: 5. Retiree benefits paid (end of year): 50.
What is Tri Cities' pension expense for 2003?
Service cost: 48. Interest cost: 32.Actual and expected return on plan assets: 26. Amortization of unrecognized net gain: 3. Amortization of unrecognized prior service cost: 5. Retiree benefits paid (end of year): 50.
What is Tri Cities' pension expense for 2003?