All categories

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.

Learn more about capital budgeting methods here:

brainly.com/question/14208432

#SPJ4

You might be interested in

An advertising agency is developing advertisements to promote a political candidate. one ad is a radio spot airing during "drive

brilliants [131]

Answer:

The radio spot should reply on the peripheral route to persuasion.

Explanation:

The peripheral route to persuasion happens when the audience chooses whether to concur with the message dependent on different cues, besides the strength of the contentions or thoughts in the message.

Peripheral route of influence isn't being convinced by actualities yet by fame and popularity. It is shallow and is generally based on attractiveness. There is no elaboration and crowds are passive. Individuals utilize mental alternate ways for this. Change through this course is impermanent and leaves rapidly.

5 0

3 years ago

Emily, while driving a car manufactured by Toyosan, suffered a side impact collision from another driver. Despite the fact that

solong [7]

Answer:

Toyosan's air bag was defective because it did not meet the expectations of a reasonable consumer.

Explanation:

Since the airbag was not as effective as it was expected by the customers, a suit against the car manufacturers from product liability may see the court conclude that the air bag was defective since it did not meet the expectations of a reasonable consumer which would have been protecting her head from hitting the steering wheel which still occured even tho the air bag was deployed.

7 0

3 years ago

Read 2 more answers

Which statements are true about assessing the effectiveness of a strategic plan?

malfutka [58]

The answer is a manager should search diligently for ways the strategy can be improved

8 0

3 years ago

Monopolist can produce at a constant average (and marginal) cost of

ankoles [38]

A monopolist can produce at a constant average (and marginal<span>) </span>cost of<span> AC = MC = $5</span>

8 0

3 years ago

Everything else held constant, an increase in the excess reserves ratio causes the m1 money multiplier to ________ and the money

Cloud [144]

The M1 money multiplier decreases and the money supply decreases when the required reserve ratio on checkable deposits rises, all else being equal.

<h3>What is the reserve ratio?</h3>

The percentage of deposits that commercial banks must retain in cash under the guidance of the central bank is known as the cash reserve ratio.

<h3>How is reserve ratio determined?</h3>

The country's central bank, in the instance of the United States, the Federal Reserve, determines the reserve ratio requirement.
The calculation for a bank can be obtained by dividing the bank deposits by the cash reserve held with the central bank, and it is expressed as a percentage.

<h3>What is an example of the reserve ratio?</h3>

The required reserve ratio is directly correlated to how much a bank expands the money supply. For instance, if a bank has deposits totaling $1,000,000 and a reserve ratio of 10%, it can lend out $900,000.

learn more about reserve ratio here

<u>brainly.com/question/13758092</u>

#SPJ4

4 0

2 years ago