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1 year ago

The ________ is management’s minimum desired rate of return on a capital investment.

Business

1 answer:

NeTakaya1 year ago

6 0

The discount rate is management's minimum desired rate of return on capital investment.

Discount rate. "management's minimum preferred rate of return on an investment'' is greatly described by using the following terms authentic. Internet gift price and the internal rate of return are examples of discounted cash waft fashions utilized in capital budgeting decisions. NPV will continually decrease.

When evaluating capital funding initiatives, if the inner fee of going back is much less than the required rate of return, the undertaking can be commonplace. Whilst selecting a capital investment task from three options, the undertaking with the best internet present cost will constantly be optimal.

The payback method commonly specializes in profitability and no longer time. One advantage of the internal rate of return is that it considers the time price of money. One drawback of the payback method is that it no longer considers the time value of money.

Learn more about payback method here brainly.com/question/24314341

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Which company provides business credit rating services for businesses looking o finance loan through bank????? I put the picture

vodka [1.7K]

Answer:

B . Moody's

Explanation:

There are three major companies that provide credit rating services in the US. They are

Standard and Poor (S&P)
Moody’s Investor Services
The Fitch Group

Each agency uses unique letter-based scores to indicate if a debt has a low or high default risk and the financial stability of its issuer.

4 0

2 years ago

According to liquidity preference theory, a decrease in the price level causes the interest rate to:a. increase, which increases

mojhsa [17]

Answer:

The correct answer is (B)

Explanation:

Liquidity preference theory emphasised on the interest which investors should demand on long-term investments due to the risk they carry. According to liquidity preference theory, a decrease in the price level shifts the money demand curve leftward. A leftward movement of the money demand curve increases the overall quantity demanded. In that regard, a decrease in interest rate increases the demand for goods and services demanded.

4 0

3 years ago

The net income for Sheridan Company for 2020 was $350,000. For 2020, depreciation on plant assets was $69,700, and the company i

enyata [817]

Answer:

350,000 net income

+69,700 depreciation

+13,300 loss on disposal

433,000 adjusted income

no change in working capital

cash generated from operating activities 433,000

Explanation:

We need to remove from the net incoem the non-monetary terms

The depreication is an accounting concept, it doesn't involve cash disbursements, so it is added.

Also the los son disposal doesn't involve using cash so is also removed.

Rule:

to remove a non-monetary expense we should add it.

to remove a non-monetary gain we should decrease it.

5 0

3 years ago

If Kindle e-readers and Nook e-readers are substitutes, a higher price for Nooks would result in a(n) ______.

lara31 [8.8K]

Answer: a) increase in the demand for Kindles.

Explanation: the substitution effect for substitute goods gives that, if the price of good A rises, the demand for good B rises. Since a substitute good is a good that can be used in place of another, they are goods that a consumer perceives as similar or are comparable, in such a way that having more of one good causes the consumer to desire less of the other good. From the viewpoint of price, and given that consumers always prefer to spend less in instances where two goods are substitutes, it then means that Kindle can be used and preferred in place of Nooks given that the price of Nooks had gone up. Therefore, increasing the price of Nooks causes a corresponding increase in the demand for Kindles.

3 0

3 years ago

Wehrs Corporation has received a request for a special order of 8,600 units of product K19 for $45.50 each. The normal selling p

disa [49]

Answer:

Increase in the net income=$ 89,160

Explanation:

The amount of the financial advantage or disadvantage would be determined as follows:

Unit variable cost of order = 16.30 + 5.60+ 2.80+5.20 = 29.9

Sales from special order) ($45.50× 8,600) 391300

Variable cost of special order ($29.9× 8,600) 257,140

Contribution from special order 134,160

Cost of special machine (45,000)

Increase in contribution 89,160

Increase in the net income=$ 89,160

Note the fixed manufacturing overhead is irrelevant, they are cost that would be incurred whether or not the order is accepted

3 0

3 years ago