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2 years ago

A negative net present value indicates that the project’s return is ________.

Business

1 answer:

Luba_88 [7]2 years ago

7 0

A negative net present value indicates that the project’s return is net loss

<h3>What is a net present values?</h3>

A net present values is a total sum of money that is currently available. It may be in terms of assets or revenue generated.

When there is a negative net present value, it means the <u>revenues generated is lower that the cost </u>of a project. This invariably leads to a loss for a particular company.

Hence a negative net present value indicates that the project’s return is net loss

Learn more on negative present values here: brainly.com/question/14960679

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Oona wants to conduct research on personnel management, workplace environment, and what type of environment results in high leve

sesenic [268]

Oona should conduct research in the area of <u>"industrial-organizational" </u>psychology.

Industrial-organizational psychology is the branch of psychology that applies psychological speculations and standards to associations. Regularly alluded to as I-O brain research, this field centers around expanding working environment profitability and related issues, for example, the physical and mental prosperity of representatives.

Industrial-organizational psychologists use psychological standards and research strategies to take care of issues in the work environment and enhance the personal satisfaction. They think about work environment profitability and administration and representative working styles. They figure out the morale and identity of an organization or association.

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3 years ago

Read 2 more answers

What is the effect of a government budget deficit on the real interest rate and investment? a government budget deficit _______

Maurinko [17]

The government budget deficit does not influence the real interest rate. The real interest rate is 9 percent a year.

<h3>What do mean by government budget?</h3>

A government budget is a document created by the government and/or another political institution that details proposed spending and tax revenue estimates for the upcoming fiscal year. The budget is typically presented to the legislature in parliamentary systems, and it frequently needs their approval.

A government budget is a document that details the anticipated income and expenditures for a given fiscal year for a given governing body. Government spending plans frequently need legislative approval and are vulnerable to political pressure from interest groups vying for funding.

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8 0

2 years ago

By shutting down, a firm A. stops receiving revenue and is stuck with its fixed costs. B. can avoid paying taxes on its previou

wel

Answer:

option A

Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period are paid at a later period. Thus option B is incorrect.

Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost. Hence option C is incorrect.

Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its sunk cost. Hence option D is incorrect.

Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.

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3 years ago

At the end of a recent year, Anderson Cleaning Service, a full-service house and office cleaning service, had total assets o

marysya [2.9K]

Answer:

Anderson Cleaning Service's liabilities were $2,160

Explanation:

Basing on accounting equation:

Total asset = Liabilities + Owner's (or Stockholders') Equity

Liabilities = Total asset - Owner's (or Stockholders') Equity

At the end of a recent year, Anderson Cleaning Service had total assets of $5,810 and equity of $3,650

Anderson Cleaning Service's liabilities = Total asset - Equity = $5,810 - $3,650 = $2,160

7 0

3 years ago

Sean Davis is the owner, president, and primary salesperson for Davis Manufacturing. Because of this, the company's profits are

Natali5045456 [20]

Answer:

The related cash flows to Sean are as follows;

a. $424,000

b. $592,000

c.$399,808

d. $512,885

Explanation:

In this question, we are asked to calculate cash flows to Davis manufacturing given that debt is issues and equity is issued for a number of hour-week

We proceed as follows;

a. For a 40 - hour week and Debt is issued

Mathematically, the cash flow is calculated below as follows;

Cash Flow = EBIT - Interest on debt = $594,000 - ($1.7 million x 10%) = $424,000

b. For a 50 - hour week and Debt is issued

Mathematically, the cash flow is calculated as follows;

Cash Flow = EBIT - Interest on debt = $762,000 - ($1.7 million x 10%) = $592,000

c. For a 40 - hour week and Equity is issued

Mathematically, the cash flow is calculated as follows;

In this case, there will be no interest cost

The firm's value will be increased by the amount of infusion but ownership of sean will be diluted.

New ownership of Sean = $3.5 million / ($3.5 million + $1.7 million) = 0.67307692307

Mathematically, the cash flow is calculated as follows

Cash Flow to Sean = EBIT x new share = $594,000 x 0.67307692307 = $399,808

d. For a 50 - hour week and Equity is issued

The calculation is as above and there is also no interest course

Cash Flow = EBIT x new share = $762,000 x 0.67307692307 = $512,885

KINDLY NOTE EBIT IS EARNINGS BEFORE INTEREST AND TAXES

5 0

3 years ago