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Ivan
2 years ago
12

Care must be taken involving capital investment decisions, since normally a long-term commitment of funds is involved and operat

ions could be affected for many years. True False
Business
1 answer:
scoray [572]2 years ago
7 0

It is a true statement that extreme care need to be exercise while making decision involving capital investment.

<h3>What are capital investment?</h3>

These are investment that entails a long-term commitment of funds for business operations.

These is an investment that allows a company to further its long-term business goals and objectives.

In conclusion, an extreme care is needed while deciding on capital investment because a wrong decision will affect the firm operation in the long run.

Read more about capital investment

<em>brainly.com/question/9144560</em>

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Is the following scenario a partnership? Your parents ask you to babysit your sibling for the evening and they give you a long l
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Your parents give you a large set of instructions and ask you to watch your brother for the evening. There is no collaboration in this situation.

An agreement between two or more persons to manage a business's operations and divide its assets and liabilities is known as a partnership. In a general partnership corporation, the assets and liabilities are divided equally among all of the partners.

By definition, a partnership firm consists of two or more individuals who pool their resources to create a company and agree to split the risks, rewards, and losses. Examples of common partnership businesses include law firms, medical groups, investment real estate companies, and accountancy groups.

Two or more persons are required. An agreement is required. The firm must distribute its gains. There has to be reciprocal agency.

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7 0
1 year ago
A client has held a long position in BCD Common for several years and has seen a sizeable increase in price since initially buyi
loris [4]

Answer:

C. This client would be best suited by buying puts on BCD

Explanation:

Buying puts on BCD is the best option strategy for protection of the profits

3 0
3 years ago
A qualitative forecasting method which utilizes structured questionnaires submitted to potential customers soliciting opinions a
kati45 [8]

A qualitative forecasting method that utilizes structured questionnaires submitted to potential customers soliciting opinions about potential products to estimate likely demand is build-up forecasting.

<h3>Build-up forecasting</h3>

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Market identification: describe the market for the product/service being investigated by checking all the appropriate industries.

Market diagnosis: analyze the basis for evaluating the number of institutions within that industry that are likely to utilize the product/service.

The objective of a bottoms-up forecast should be to output informative data that leads to decision-making backed by tangible data.

Bottom-up forecast models enable administration teams to develop a better perception of their company, which precedes improved functional decision-making.

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8 0
2 years ago
A new semi-automatic machine costs $ 80,000 and is expected to generate revenues of $ 40,000 per year for 6 years. It will cost
Dmitry_Shevchenko [17]

Answer:

The complete part of the question is found below:

Neglect the salvage value for payback period rate of return

Applicable rate of return is 15%

Answers:

Payback is 5.33 years

Present worth is -$18,909.48

UAC is -$ 4,996.58

Rate of return is 18.75%

Explanation:

In case of an even cash flow like this when the net cash flow yearly is $15,000($40,000-$25000), the payback period is initial investment/net annual cash flow

Payback=$80,000/$15,000= 5.33  years

Present is computed thus

Year   cash flow discount factor  pv=cash flow*discount factor

0        -$80,00       1/(1+0.15)^0      (80,000.00)

1         $15000         1/(1+0.15)^1      13,043.48  

2         $15000        1/(1+0.15)^2      11,342.16  

3         $15,000        1/(1+0.15)^3       9,862.74  

4         $15,000       1/(1+0.15)^4         8,576.30  

5         $15,000      1/(1+0.15)^5          7,457.65  

6         $25,000     1/(1+0.15)^6           10,808.19  

present worth                                     (18,909.48)

The uniform annual cost=NPV*r/(1-(1+r)^-n

NPV is -$18,909.48*0.15/(1-(1+0.15)^-6)

            =-$ (2,836.42) /0.567672404

           =-$ (4,996.58)

The rate of return can be computed thus:

rate of return=annual cash flow/initial investment*100

annual cash flow is $15000

initial investment is $80,000

rate of return=15,000/80000*100

                      =18.75%

6 0
3 years ago
Sandy transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Dolphin Corporation, for all of Dolphin's
never [62]

Answer:

B. Sandy recognized gain of $400,000.

Explanation:

Sandy transfers land of basis $100,000 to Dolphin Corporation. The land worth is $500,000 which is transferred to Dolphin Corporation in return for all the stocks worth $300,000 and note was executed by Dolphin amounting $200,000. The total consideration of Dolphin Corporation amounts $500,000 which the worth of the land transferred by Sandy. The basis of Land was $100,000. Sandy can recognize a gain of $400,000.

7 0
3 years ago
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