invest? ProZ Chauncy should invest in both Craxton Chauncy shoud not invest in e

Question

invest?

ProZ

Chauncy should invest in both

Craxton

Chauncy shoud not invest in either

Why?

We need to incremental analysis to make the proper decision

Neither start up has a ROR that is greater than the MARR Neither should be considered for investment

ProZ and Craxton both have a good ROR. Chaucy can invest in both

Craxton Enterprises has a higher ROR. CHauncy should invest in that company

Chauncy Ventures has the opportunity to invest in two new start-ups. Preliminary financial analysis indicates that investment in the first start-up, ProZ, would yield a rate of return (ROR) of 5%. Investment in the second start-up, Craxton Enterprises, would yield a ROR of 6%. Chauncy Ventures uses a MARR of 10% to evaluate investment decisions. In which start-up should Chauncy invest? Select] Why? [Select

Explanation / Answer

Since the MARR (Minimum Accetable Rate of Return) for Chauncy is 10%, and both the startups have ROR (Rate of Return) less than the MARR, neither should be considered for investment.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.