New Year Special - 75% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: ac75sure

HIW manufactures motorcycles and has factories in several countries HIW produces several different types of...

HIW manufactures motorcycles and has factories in several countries HIW produces several different types of motorcycle, with different models often being tailored to suit the needs of customers in specific countries HIW has identified a positive net present value project to build a new factory in Farland, which will make motorcycles for sale in Farland and for export to neighbouring countries HIW has not previously traded in Fartand or its neighbours Farland is regarded as politically and economically unstable and its currency is highly volatile against other leading currencies

HIWs Board wishes to consider the interests of different stakeholder groups who will be affected by the investment in Farland The Board recognises that there could be conflict between the goals of maximising profit and of maximising shareholder wealth

Which THREE of the following statements are correct?

A.

In order to focus on profit maximisation, the appraisal needs to consider the time value of money

B.

The new facility will increase earning capacity but the instability may mean profits are lower than expected.

C.

Shareholder wealth the project appraisal must consider the long term the Farland economy

D.

In order to focus on maximising shareholder wealth the project appraisal must consider the long term impact of the project.

E.

HIWs share price must rise when the Farland project is announced.

P3 PDF/Engine
  • Printable Format
  • Value of Money
  • 100% Pass Assurance
  • Verified Answers
  • Researched by Industry Experts
  • Based on Real Exams Scenarios
  • 100% Real Questions
buy now P3 pdf
Get 75% Discount on All Products, Use Coupon: "ac75sure"