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Suppose sora industries' revenue and free cash flow are expected to grow at a 4.3% rate.

a. True
b. False

User Arnise
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1 Answer

4 votes

Final answer:

The question pertains to evaluating a company's investment decisions considering potential financial returns and societal benefits. It discusses investments by The Gizmo Company and the effect of a social benefit on the resulting return for society. The unrelated statement about Sora Industries' growth rate cannot be deemed true or false as it is unrelated to The Gizmo Company's scenario.

Step-by-step explanation:

The question is related to the financial decision-making of a company (The Gizmo Company) as it considers investment in research and development of new household gadgets. The scenario provided outlines a consideration of expected financial returns on these investments, alongside an additional social benefit. In this context, an investment yielding a 6% return for the company will effectively provide an 11% return for society when the social benefit is included, and similarly, a 7% return for the company translates to a 12% return for society, and so on.

When making such investment decisions, companies will often assess the expected rate of return and may also take into account any broader social impacts, which may affect their financial planning and prioritization of potential projects.

The given statement about Sora Industries' revenue and free cash flow expected to grow at a rate of 4.3% is unrelated to the provided information about The Gizmo Company and therefore cannot be classified as true or false based on the details about The Gizmo Company's investment plans.

User Mstrand
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