Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Net Sales

Financial Accounting

4. Merchandising Operations

Net Sales

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Multiple Choice

A good project will have an expected return that is _____ than the weighted average cost of capital (WACC).

less

unrelated

greater

equal

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Verified step by step guidance

Understand the concept of Weighted Average Cost of Capital (WACC): WACC represents the average rate of return a company is expected to pay its investors (both equity and debt holders) for using their capital. It serves as a benchmark for evaluating investment projects.

Recognize the relationship between expected return and WACC: For a project to be considered 'good' or viable, its expected return must exceed the WACC. This ensures that the project generates sufficient returns to cover the cost of capital and adds value to the company.

Analyze the options provided: The options include 'less,' 'unrelated,' 'greater,' and 'equal.' Compare each option against the principle that a good project must have an expected return greater than the WACC.

Select the correct answer: Based on the analysis, the correct answer is 'greater,' as a project with an expected return greater than the WACC indicates profitability and value creation.

Review the reasoning: Confirm that the chosen answer aligns with financial theory and ensures the project contributes positively to the company's overall financial health.