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2 years ago

The net present value (NPV) method estimates how much a potential project will contribute to

Business

1 answer:

Alex777 [14]2 years ago

4 0

This answer requires that we fill in the blanks. The answers are contained in the bullet to fill the missing places

shareholder wealth
larger the NPV
higher stock price.
WACC
accept the project.
higher positive NPV.

This is the term that is used to refer to the net present value. This is the value that is calculated as the difference between the cash inflows and out flows for over a time period.

In order to get the NPV we have to make the following calculations for the projects A and B.

We have:

<u>For Project A</u>

-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴

= $355. 237

<u> project B</u>

we would have

-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴

= 378.98

The value for the project B happens to be greater than that of A hence this is the value that we have to accept

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Loss is the value of the economic surplus that is forgone when a market is not allowed to adjust to its competitive equilibrium.

avanturin [10]

Answer:

True (Dead-weight loss )

Explanation:

When the market is not allowed to adjust towards the equilibrium the economics efficiency is lost. When the supply is excessive compared to demand some part of supply remains intact, which means that small of amount of supply does not contribute to economics and allocation efficiency and considered as a dead-weight loss. The supply is forgone because the market is not allowed to stabilise.

7 0

3 years ago

On July 1, 2020, Sheffield Co. pays $10,480 to Tamarisk Insurance Co. for a 2-year insurance policy. Both companies have fiscal

Gwar [14]

Answer:

Explanation:

The journal entry is shown below:

On July 1

Prepaid Insurance A/c Dr $10,480

To Cash A/c $10,480

(Being prepaid insurance is paid)

On December 31

Insurance expense A/c Dr $2,620

To Prepaid Insurance $2,620

(Being prepaid insurance is adjusted)

The computation is shown below:

= $10,480 ÷ 2 years × 6 months ÷ 12 months

= $2,620

5 0

3 years ago

Which of these is not one of the basic functions of the management process?

DIA [1.3K]

Answer:.

Explanation:

4 0

3 years ago

Assume that total costs assigned to the setup activity cost pool in March are $120,000 and 100 setups were completed in March. F

IgorLugansk [536]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Assume that the total costs assigned to the setup activity cost pool in March are $120,000 and 100 setups were completed in March.

Further, assume that during March machines were setup 20 times to make product X5.

First, we need to calculate the activity rate for setups.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 120,000/100= $1,200 per setup

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1,200*20= $24,000

6 0

4 years ago

What overall, vital role do prices play in the free market??

Bezzdna [24]

Prices play a huge role in the free market because they are used to appropriately place goods within the economy. They are used to determine what price point objects should be where and what market will have the established value and pay the price of the good. Price helps serve as a value measurement in a free market.

5 0

3 years ago