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Musya8 [376]
1 year ago
12

Two methods of capital investment analysis that incorporate the time value of money are:______.

Business
1 answer:
babymother [125]1 year ago
5 0

Two methods of capital investment analysis that incorporate the time value of money are -Net Present Value and Discounted Cash Flow

1- Net Present Value

Net Present Value reduces the expected future cash flows by a specific rate to arrive at their value in today's terms. After subtracting the initial investment cost from the present value of the expected cash flows, it can be  determined whether the project is worth pursuing. If the NPV is a positive number, it means it's worth pursuing while a negative NPV means the future cash flows aren't generating enough return to be worth it and cover the initial investment.

2- Discounted Cash Flow

With DCF analysis, the discount rate is typically the rate of return that's considered risk-free and represents the alternative investment of the project. The present value is the value of the expected cash flows in today's dollars by discounting or subtracting the discount rate. If the result or present value of the cash flows is greater than the rate of return from the discount rate, the investment is worth pursuing.

To learn more about Net Present Value and Discounted Cash Flow here

brainly.com/question/23040788

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The Keynesian link between the money market and the goods and services market is __________. Changes in the money market must af
Vsevolod [243]

Answer:

Indirect; investment.

Explanation:

John Maynard Keynes was a British economist born on the 5th of June, 1883 in Cambridge, England. He was famous for his brilliant ideas on government economic policy and macroeconomics which is known as the Keynesian theory. He later died on the 23rd of April, 1946 in Sussex, England.

The Keynesian link between the money market and the goods and services market is indirect. Changes in the money market must affect the investment market before the goods and services market is affected.

According to the Keynesian Transmission Mechanism, the link between the money market and the goods and services market is indirect; because at first, short-term interest rates are lowered by an increase in the supply of reserves and then with time both the bond and bank loan rates falls. Consequently, this would make investments and aggregate demand (AD curve shifts rightward) to rise or increase as a result of the low cost of capital for investors and by extension it boost the level of production or quantity of output (real gross domestic product or Real GDP).

<em>This ultimately implies that, the interest rates affects the real and costs of capital (monetary changes). </em>

5 0
3 years ago
A. the repairs do not extend beyond the damage suffered.
TEA [102]
It would be c. hope that helps
5 0
3 years ago
What is the purpose of NCUA Lending Regulations?
Dafna11 [192]
The purpose of NCUA Lending regulation is to create stability and to keep a fair condition in a lending process. A foul or a fraud in the lending process could easily have been made if there is a bad intention in either creditor or debtor in the lending process<span>. An intention for not paying a credit agreement is one of this foul example.</span>
8 0
3 years ago
Read 2 more answers
Last year, Michelson Manufacturing reported $10,250 of sales, $3,500 of operating costs other than depreciation, and $1,250 of d
svet-max [94.6K]

Answer:

c. -$435.00

The answer and procedures of the exercise are attached in a microsoft excel document.

Explanation:

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

6 0
3 years ago
A new strip mall is being considered and the developers want to determine how many parking spaces there should be. It is assumed
Dafna11 [192]

Answer:

The responses to the given question can be defined as follows:

Explanation:

For point a:

Car arrival time= \frac{15}{hour}

Each car arrives at an interval of time of \frac{60}{15} = 4\ minutes

process time =0.5 \ hour

The number of vehicles moving in an hour equals 2 per hour.

As \frac{15}{2} is greater than 1. The device will not work, resulting in such a revenue loss.

Within 44 minutes, a parking lot would be completely full, with only 1 person being serviced, and then the next empty slot would be completed 64 minutes later.

The system's production capacity is 8.5 per hour [a person entering at 0 will exit at 30]. The person that comes in at 4 will leave at 34. Roughly 50 customers would be supported for an hour.

For point b:

The number of customers would be = 8.5 \times 12 = 102 for a 12-hour time frame.

Total cost=12\times 150 = \$1800

The total number of customers to be served at an expense of 2500= \frac{2500}{150} = 18 customers.

5 0
3 years ago
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