Calculating the present value of a cash flow or series of cash flows that will be received in the future is the process of discounting.
A value obtained in the future is converted to an equivalent value received right away through the process of discounting. Discounting determines this relative value, so a dollar received in 50 years may be worth less than a dollar received today. Using the aforementioned method, the discounting process assists an investor in estimating the investment's value in current dollars at the investor's desired rate of return. Due to the opportunity cost of spending money now and the desire to enjoy advantages now rather than in the future, discounting makes current costs and benefits more valuable than those that will occur in the future. A discount factor in financial modeling is a decimal number multiplied by a cash flow value to reduce it to its present value. As the effect of compounding the discount rate accumulates over time, the factor grows (i.e., the decimal value shrinks).
Know more about discounting:
brainly.com/question/15060398
#SPJ4
Answer:
The answer is given below:
Explanation:
a.
1.Yes
2.Yes
3.Yes
4.Yes
5.Yes
6. Yes
b.
7.No
8.Yes
9.Yes
10.No
11.No
12.No
As a rule of thumb,those costs which increase the value or useful life of asset should be capitalized where as those costs that are incurred to maintain the usage of asset are revenue expenditure and should be charged to income statement not the asset.
Answer:
B...................................
Answer:
Retained earnings-Closing = $19,900
Explanation:
Given that,
Revenues = $22,400
Operating Expenses = $15,000
Dividends = $4,500
Retained Earnings(opening) = $17,000
Net Income = Revenues - Operating expenses
= $ 22,400 - $15,000
= $7,400
Statement of Retained Earnings:
Retained earnings-Closing:
= Retained earnings -opening + Net Income - Dividends
= $17,000 + $7,400 - $4,500
= $19,900
Answer:
The correct answer is letter "E": Perceptual defense.
Explanation:
In psychology, perceptual defense refers to the suppression of a stimulus that represents a threat or an uncomfortable situation for an individual. Those inputs are distorted somehow by the individual to reject the unpleasant feeling so that the person does not feel that bad because of it. In such a way, the brain works as a defense mechanism able to distort information to mitigate the effects in the behavior produced by the stimulus.
