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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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brilliants [131]

What is a possible use for a genetic fingerprint is: i. to identify if someone was present at a crime scene.

<h3>What is  genetic fingerprint?</h3>

Genetic fingerprint can be defined as a fingerprint that help to detect the deoxyribonucleic acid (DNA)  traits or feature a person inherit.

Most crime investigator tend to make use of Genetic fingerprint when investigation a crime scene event so as to detect and identify the person who committed the crime through the use of genetic fingerprint they found in the crime scene.

Therefore What is a possible use for a genetic fingerprint is: i. to identify if someone was present at a crime scene.

Learn more about Genetic fingerprint here:brainly.com/question/27762372

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6 0
2 years ago
Practice Question 25 Which one of the following is an effective method of evaluating a cost center? Compare actual total costs w
Afina-wow [57]

Answer:

C). Compare actual controllable costs with flexible budget data.

Explanation:

The Cost center is very crucial to be determined by an organization as it indirectly bestows its profitability. It is usually calculated by comparing the actual cost generated by the department to the expectations as per the budgeted cost. Thus, the most constructive method to evaluate a cost center would be the 'comparison between the actual controllable costs and the flexible budget data' as it helps in assessing the actual expense incurred during the year and whether it is lesser or greater than the cost estimated in the budget. Hence, <u>option C</u> is the correct answer.

6 0
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Which of the following could cause an appreciation of the real exchange rate in a small open economy? A decrease in the domestic
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Answer: An increase in government spending

Explanation:

Currency appreciation is an increase in the worth of one currency against the value of another currency. Due to the appreciation of a currency, imports get cheaper.

In a small open economy, the appreciation of the real exchange rate can be caused by an increase in government spending as this puts pressure on domestic currency to appreciate, which leads to current account deterioration.

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The largest proportion of federal revenues comes from C. Personal income taxes.
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