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2 years ago

When evaluating a single project for acceptance, the NPV and IRR decision rules will give the same result when Blank

2 answers:

8 0

When evaluating a single project for acceptance, the NPV and IRR decision rules will give the same result when The graph of the NPV versus discount rate decline smoothly as the discount rate increases.

Net present value, or NPV, is used to calculate the current total value of future payments. If the NPV of a project or investment is positive, it means that the discounted present value of all future cash flows related to that project or investment will be positive, and therefore attractive.

It is calculated by taking the difference between the present value of cash inflows and the present value of cash outflows over a period of time. As the name suggests, net present value is nothing but net off of the present value of cash inflows and outflows by discounting the flows at a specified rate.

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Setler [38]2 years ago

7 0

When evaluating a single project for acceptance, the NPV and IRR decision rules will give the same result when The graph of the NPV versus discount rate decline smoothly as the discount rate increases.

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. In contrast, the internal rate of return (IRR) is a calculation used to estimate the profitability of potential investments.

Both of these measurements are primarily used in capital budgeting, the process by which companies determine whether a new investment or expansion opportunity is worthwhile. Given an investment opportunity, a firm must decide whether making the investment will result in net economic gains or losses for the company

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Adam was recruiting project managers for his small business. As he finalized the job description for the position, he worried ab

Kruka [31]

Answer:

The answer is: Compensation

Explanation:

Compensation is not only the money you earn as a salary for the job you perform. It is the total amount of monetary (salary) and non-monetary benefits provided to an employee by his employer.

Non-monetary benefits include perks which aren't part of the salary but have real value for the employees.

The problem for small companies is that their pockets aren't as deep as corporate pockets, so they can offer limited compensation (both monetary and non-monetary).

3 0

3 years ago

Diamond Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The

AleksAgata [21]

Answer:

Diamond Computer Company

The company should make (Alternative 1) the cases.

Explanation:

a) Data and Calculations:

Purchase price of portable computer cases = $59 per unit

Alternative 1: Make

Direct materials $35.00

Direct labor 18.00

Variable overhead 2.70 (15% of $18.00)

Total variable cost $55.70

Alternative 2: Buy

Purchase price = $59

b) A make or buy decision is determined by preparing a differential analysis. The differential or incremental analysis evaluates the changes in revenues, costs, and profits resulting from Diamond's decision to make or purchase the computer carrying cases.

3 0

3 years ago

SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year,

velikii [3]

Answer:

March 9

Dr Treasury Stock - Common stock 456,000

Cr Cash 456,000

( to record the reacquired of 12,000 common stock at $38 each)

June 9

Dr Cash 311,600

Cr Treasury stock 288,800

Cr Paid-in capital 22,800

( to record the sell of 7,600 reacquired common stocks at $41 each)

November 13

Dr Cash 118,900

Cr Treasury stock 110,200

Cr Paid-in capital 8,700

( to record the sell of 2,900 reacquired common stocks at $41 each)

The balance of paid-in capital from sales of treasury stock = 8,700 + 22,800 = 31,500 Credit

Explanation:

Calculation notes:

March 9: The cash spent on reacquired common stock = 12,000 x 38 = $456,000

June 9: Cash receipt on sell of treasury common stock = 7,600 x 41 = 311,600; which will Credited $288,800 into Treasury stock account ( 38 x 7,600) and Credited $22,800 ( (41-38) x 7,600) into Paid-in capital account.

Nov 13 : Cash receipt on sell of treasury common stock = 2,900 x 41 = 118,900; which will Credited $110,200 into Treasury stock account ( 38 x 2,900) and Credited $8,700 ( (41-38) x 2,900) into Paid-in capital account.

b. Calculation is shown above

3 0

4 years ago

The price index was 150 in the first year, 142.5 in the second year, and 138.2 in the third year. The economy experienced:______

Maslowich

Answer:

The correct answer is:

5.0 percent deflation between the first and second years, and 3.0 percent deflation between the second and third years. (a)

Explanation:

to calculate the percentage deflation, we will simply calculate the percentage change in price between the years stated. This is calculated as follows:

% change = $\%\ change = \frac{P_2 - P_1}{P_1} \times 100\\where:\\P_1 = initial\ price\ index\\P_2 = New\ price\ index\\for\ first\ and\ second\ years\\\therefore \%\ change = \frac{142.5 - 150}{150} = \frac{-7.5}{150}= -0.05 \times 100 = -5\%\\$

Note that the negative sign shows a deflation.

if you use the same method for years two and three, you should get -3%, using P₁ as 142.5 and p₂ as 138.2. Hence option 'a' is correct.

7 0

3 years ago

Ahrens Inc is preparing its January balance sheet. Ahrens has $3,100 in Supplies to be converted in March, $4,700 Notes Receivab

Sveta_85 [38]

Assets should be listed down based on its liquidity. The more liquid it is, the higher its place in the balance sheet.

$3,100 in Supplies to be converted in March,
$4,700 Notes Receivable to be converted in August,
$800 in Prepaid Insurance to be converted in April, and
$6,200 in Accounts Receivable to be converted in June

The assets should be listed in this order:
Supplies $3,100
Prepaid Insurance $800
Accounts Receivable $6,200
Notes Receivable $4,700

8 0

3 years ago