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Suyash tries to evaluate two projects. The projects have equal level of risk. According to this parameter he finds both projects at par. However, when it corhes to knowing the rate of return of the two projects he finds that Project A will yield a rate of return of 10% and Project B will yield a rate of return of 12%. So he decides to go ahead with the project B.?
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Suyash tries to evaluate two projects. The projects have equal level o...
Introduction:
Suyash is evaluating two projects and considering their level of risk and rate of return. He finds that both projects have an equal level of risk, but Project A will yield a rate of return of 10% while Project B will yield a rate of return of 12%. Suyash decides to go ahead with Project B and we will explore the reasons behind this decision.
Equal Level of Risk:
Suyash initially evaluates the projects based on their level of risk. The equal level of risk indicates that both projects have similar possibilities of incurring losses or generating profits. This parameter allows Suyash to consider the projects at par, meaning they are equal in terms of risk.
Rate of Return:
After evaluating the level of risk, Suyash looks at the rate of return for both projects. Rate of return refers to the percentage of profit or loss generated by an investment relative to the amount invested. In this case, Project A is expected to yield a rate of return of 10% while Project B is expected to yield a rate of return of 12%.
Decision to Choose Project B:
Suyash decides to go ahead with Project B despite both projects having an equal level of risk. The decision is based on the higher rate of return offered by Project B compared to Project A. By choosing Project B, Suyash expects to receive a higher percentage of profit on the amount invested.
Maximizing Returns:
Suyash's decision can be attributed to his desire to maximize his returns on investment. By choosing Project B, which offers a higher rate of return, Suyash aims to increase his profitability. This decision aligns with the principle of maximizing returns in investment decision-making.
Risk-Return Tradeoff:
The decision to choose Project B also highlights the risk-return tradeoff. Suyash is willing to accept a slightly higher level of risk associated with Project B in exchange for a higher rate of return. This tradeoff implies that Suyash is comfortable taking on additional risk in order to potentially gain higher profits.
Conclusion:
In conclusion, Suyash evaluates two projects based on their level of risk and rate of return. Despite both projects having an equal level of risk, Suyash decides to go ahead with Project B due to its higher rate of return of 12% compared to Project A's rate of return of 10%. This decision reflects Suyash's desire to maximize his returns and his willingness to accept a slightly higher level of risk.
Suyash is evaluating two projects and considering their level of risk and rate of return. He finds that both projects have an equal level of risk, but Project A will yield a rate of return of 10% while Project B will yield a rate of return of 12%. Suyash decides to go ahead with Project B and we will explore the reasons behind this decision.
Equal Level of Risk:
Suyash initially evaluates the projects based on their level of risk. The equal level of risk indicates that both projects have similar possibilities of incurring losses or generating profits. This parameter allows Suyash to consider the projects at par, meaning they are equal in terms of risk.
Rate of Return:
After evaluating the level of risk, Suyash looks at the rate of return for both projects. Rate of return refers to the percentage of profit or loss generated by an investment relative to the amount invested. In this case, Project A is expected to yield a rate of return of 10% while Project B is expected to yield a rate of return of 12%.
Decision to Choose Project B:
Suyash decides to go ahead with Project B despite both projects having an equal level of risk. The decision is based on the higher rate of return offered by Project B compared to Project A. By choosing Project B, Suyash expects to receive a higher percentage of profit on the amount invested.
Maximizing Returns:
Suyash's decision can be attributed to his desire to maximize his returns on investment. By choosing Project B, which offers a higher rate of return, Suyash aims to increase his profitability. This decision aligns with the principle of maximizing returns in investment decision-making.
Risk-Return Tradeoff:
The decision to choose Project B also highlights the risk-return tradeoff. Suyash is willing to accept a slightly higher level of risk associated with Project B in exchange for a higher rate of return. This tradeoff implies that Suyash is comfortable taking on additional risk in order to potentially gain higher profits.
Conclusion:
In conclusion, Suyash evaluates two projects based on their level of risk and rate of return. Despite both projects having an equal level of risk, Suyash decides to go ahead with Project B due to its higher rate of return of 12% compared to Project A's rate of return of 10%. This decision reflects Suyash's desire to maximize his returns and his willingness to accept a slightly higher level of risk.
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Suyash tries to evaluate two projects. The projects have equal level of risk. According to this parameter he finds both projects at par. However, when it corhes to knowing the rate of return of the two projects he finds that Project A will yield a rate of return of 10% and Project B will yield a rate of return of 12%. So he decides to go ahead with the project B.?
Question Description
Suyash tries to evaluate two projects. The projects have equal level of risk. According to this parameter he finds both projects at par. However, when it corhes to knowing the rate of return of the two projects he finds that Project A will yield a rate of return of 10% and Project B will yield a rate of return of 12%. So he decides to go ahead with the project B.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Suyash tries to evaluate two projects. The projects have equal level of risk. According to this parameter he finds both projects at par. However, when it corhes to knowing the rate of return of the two projects he finds that Project A will yield a rate of return of 10% and Project B will yield a rate of return of 12%. So he decides to go ahead with the project B.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Suyash tries to evaluate two projects. The projects have equal level of risk. According to this parameter he finds both projects at par. However, when it corhes to knowing the rate of return of the two projects he finds that Project A will yield a rate of return of 10% and Project B will yield a rate of return of 12%. So he decides to go ahead with the project B.?.
Suyash tries to evaluate two projects. The projects have equal level of risk. According to this parameter he finds both projects at par. However, when it corhes to knowing the rate of return of the two projects he finds that Project A will yield a rate of return of 10% and Project B will yield a rate of return of 12%. So he decides to go ahead with the project B.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Suyash tries to evaluate two projects. The projects have equal level of risk. According to this parameter he finds both projects at par. However, when it corhes to knowing the rate of return of the two projects he finds that Project A will yield a rate of return of 10% and Project B will yield a rate of return of 12%. So he decides to go ahead with the project B.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Suyash tries to evaluate two projects. The projects have equal level of risk. According to this parameter he finds both projects at par. However, when it corhes to knowing the rate of return of the two projects he finds that Project A will yield a rate of return of 10% and Project B will yield a rate of return of 12%. So he decides to go ahead with the project B.?.
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Suyash tries to evaluate two projects. The projects have equal level of risk. According to this parameter he finds both projects at par. However, when it corhes to knowing the rate of return of the two projects he finds that Project A will yield a rate of return of 10% and Project B will yield a rate of return of 12%. So he decides to go ahead with the project B.?, a detailed solution for Suyash tries to evaluate two projects. The projects have equal level of risk. According to this parameter he finds both projects at par. However, when it corhes to knowing the rate of return of the two projects he finds that Project A will yield a rate of return of 10% and Project B will yield a rate of return of 12%. So he decides to go ahead with the project B.? has been provided alongside types of Suyash tries to evaluate two projects. The projects have equal level of risk. According to this parameter he finds both projects at par. However, when it corhes to knowing the rate of return of the two projects he finds that Project A will yield a rate of return of 10% and Project B will yield a rate of return of 12%. So he decides to go ahead with the project B.? theory, EduRev gives you an
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