Chapter 12 Question 2 Adjusting for Risk: Docs R Us has performed a risk assessment of independent projects. They adjust for project risk by raising the calculated IRR by 3% for low risk projects, leaving the IRR the same for moderate risk projects, and lowering the calculated IRR by 2% for high risk projects. Project Cost NVP Risk IRR Risk Level ADJ IRR A $21,000 -$2,000 10% Low B $17,000 $4,000 14% Low C $15,000 $2,000 12% High D $14,000 $4,000 15% Average E $4,000 $1,000 11% High A. Without capital rationing, and given their cost of capital of 12%, and ignoring risk, based on IRR which projects should Meds R Us accept? Why? B. B. Without capital rationing, and given their cost of capital of 12%, and considering risk, which projects should Meds R Us accept? Why? Note that you will add 3% to the Project's IRR if it is low risk (making it look more favorable since it is), leave average risk Projects' IRRS the same, and subtract 2% from the IRR for high risk Projects (making them less favorable since they are due to the risk).

Define Gift card.

answer all incorrect

Wendy Marvel sold $260,000 of its inventory to Carla during 2021 for $400,000. Carla sold $300,000 of this merchandise in 2021 with the remainder to be disposed of during 2022. Assume Wendy Marvel owns 35% of Carla and has the ability to exert significant influence over Carla. What journal entry will be recorded at the end of 2021 to defer the recognition of the investor's share of the intra- entity gross profits? A) Equity in Carla B) C) D) Investment in Carla Investment in Carla Equity in Carla Equity in Carla Investment in Carla Investment in Carla Equity in Carla $35,000 $35,000 $12,250 $12,250 35,000 $35,000 $12,250 $12,250