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1 year ago

The time value of money is explicitly considered in which one of the following capital budgeting method(s)?

Business

1 answer:

Alexandra [31]1 year ago

4 0

The time value of money is explicitly considered in Net present value (NPV) capital budgeting methods.

The process of deciding whether to invest in capital assets is known as capital budgeting. Companies can more efficiently assess and prioritize which projects, programs, and other investment assets could be the most financially advantageous in the long-term by integrating strategically planned capital budgeting into their financial processes. Internal Rate of Return, Net Present Value, Profitability Index, Accounting Rate of Return, and Payback Period are the five capital budgeting methodologies.

An investment opportunity's whole value is intended to be captured by the financial term known as Net Present Value (NPV). The goal of NPV is to forecast all potential future cash inflows and outflows related to an investment, discount each one to the present, and then tally them all up.

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Bob's GMI is $2,000 per month. He currently rents an apartment for $800 per month. Bob has a $199 monthly car lease and an $80 m

Murljashka [212]

Answer:

40/54

Explanation:

Bob's GMI = $2,000

Rent = $800

Car lease = $199

Credit card payment = $80

First, we'd calculate the percentage of his income that is his rent.

We have,

(800 ÷ 1000) x 100%

=40%

then we can calculate what percentage of his GMI is his spending

we have,

(800 + 199 + 80) ÷ 2000

(1079 ÷ 2000) × 100%

= 0.54 × 100%

= 54%.

This means that Bob's qualifying ratio is 40/54 i.e his housing/debt ratio.

With a qualifying ratio of 40/54, it is very impossible for him to get the smallest of mortgage loan product, etc.

Bob will need to find a co-borrower or another person that can lend a higher amount.

Cheers.

6 0

4 years ago

Tobin Supplies Company expects sales next year to be $520,000. Inventory and accounts receivable will increase $90,000 to accomm

elena-s [515]

Answer:

$17,200

Explanation:

Calculation to determine How much external financing will Tobin Supplies Company have to seek

Net Income=[$520,000 x 20%]

Net Income = $104,000

Dividend Pay-out= [$104,000 x 30%]

Dividend Pay-out = $31,200

Additions to Retained Earnings = [$104,00 - $31,200]

Additions to Retained Earnings=$72,800

Now let determine the The External Financing Needed using this formula

The External Financing Needed = Increase in Assets – Additions to retained earnings

Let plug in the formula

The External Financing Needed= $90,000 - $72,800

The External Financing Needed= $17,200

Therefore The External Financing Needed is $17,200

7 0

3 years ago

Transformational leadership: ____________

schepotkina [342]

Leadership is a way of leading others towards a certain goal. The one in charge of the leading or steering the mantle of leadership is known as a leader.

<h3>Characteristics of Transformational leadership</h3>

Transformational leadership helps followers to transcend their own self-interests for the good of the group.

There are types of leaders in every context. There are good and bad leaders. A transfirmational leader helps followers to achieve their personal interests.

learn more about leadership from here: brainly.com/question/12522775

6 0

2 years ago

In an imaginary economy, consumers buy only hot dogs and hamburgers. The fixed basket consists of 10 hot dogs and 6 hamburgers.

aksik [14]

Answer:

The correct option is option D which is When 2006 is chosen as the base year, the inflation rate is 50 percent in 2007.

Explanation:

For the fixed basket, the price is 2006 is given as

Basket Price =$3*10+$5*6=$30+$30=$60

Now the price of basket in 2007 is given as

Basket Price=$5.40*10+$6*6=$54+$36=$90

Now as the inflation rate is given as

Price in 2007/Price in 2006=$90/$60=1.5

this indicates that the prices have become 1.5 times or have increase 50% Thus the inflation rate is 50%

3 0

3 years ago

PlastiPharm produces a foundational product that sits on a shelf until it is needed and added to another product. In reviewing t

Alexxx [7]

PlastiPharm would want to perform the additional testing because:

The additional testing helps the company as it strives for perfection in its products and helps avoid future problems by reducing waste (defective parts). (Option C)

Testing all the parts addresses any questions that customers might have about quality or performance of materials. (Option D)

<h3>Why do manufacturers carry out testing?</h3>

Rigorous testing is usually carried out by companies to ensure that defects and hazards are detected before the products are sent out into the market.

This way, their liability from product defects is reduced or eliminated completely.

Learn more about testing at;
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8 0

2 years ago