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gavmur [86]
1 year ago
14

Which method for evaluating capital investment proposals reduces the present value of cash outflows from the present value of ca

sh inflows?
Business
1 answer:
Viktor [21]1 year ago
6 0

Net Present value = Present value of Cash inflows - Present value of Cash outflow is the  method for evaluating capital investment proposals reduces the present value of cash outflows from the present value of cash inflows.

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project. Net Present value is the result of calculations used to find the current value of a future stream of payments.

Net Present value accounts for the time value of money and can be used to compare the rates of return of different projects, or to compare a projected rate of return with the hurdle rate required to approve an investment.

The time value of money is represented in the Net Present value formula by the discount rate, which might be a hurdle rate for a project based on a company's cost of capital. No matter how the discount rate is determined, a negative Net Present value shows the expected rate of return will fall short of it, meaning the project will not create value.

Learn more about Net Present value here

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Julio is the owner of Party Pros, Inc., a party supply company. The company provides tents, tables, chairs, and related products
wel

Answer:

Line organization model

Explanation:

Based on the information provided within the question it seems that Party Pros Inc. is using a Line organization model. This is an organizational structure in which power flows from the top to the bottom, meaning that the person at the top is the owner and the individuals in each level of the hierarchy answer to those in the upper levels, all of which are trying to accomplish the same organizational goals. Such as is being described in this situation.

8 0
3 years ago
Video quiz the story in the video describes how the ceo of japan airlines, haruka nishimatsu, serves as an example of
ipn [44]

Answer:

C) Several of the characteristics of a high performing strategic leader.

Explanation:

Nishimatsu established several policies (e.g. open-door, eating with employees, etc.) to decentralize planning strategies.

Nishimatsu also had the habit of talking with flight attendants and other low level employees as a way of being well informed about the airline's operations.

He even decided to take a wage cut when the airline was in financial trouble, which is extremely uncommon for a CEO.  

Nishimatsu's behavior and traits made the employees have a very positive opinion of him, and they felt he was approachable and a true leader.

3 0
3 years ago
The movement of parts from one area of the factory to another is considered a value-added activity whereas the storage of raw ma
ivanzaharov [21]

Answer:

TRUE

Explanation:

Value can be defined as the thing for which an customer is willing to pay the price. It is the activity on any shop floor or business for delivering the product or service to the customer for which the customer is ready to pay the price for it.

If the customers does not wish to pay the price, then there is no value.

So inside a factory, in a shop floor, moving a part from one place to another for making a product that the customer is willing to pay is a value added activity. But excess movement or transportation of product does not any value to it, it is then considered as a waste.

Also storing of products is a non value activity as storing a product will not help the customer in any way and a customer will not pay for a product when it is stored and is of no use to the customer.

4 0
3 years ago
Each of the following would increase the demand for U.S. dollars, shifting the demand curve for dollars to theright, except:
earnstyle [38]

Answer:

<h2>The answer to the given question would be option C. or an increase in the real interest rate on U.S. assets.</h2>

Explanation:

  • An increase in the real interest rate on US financial assets basically imply a higher financial cost of borrowings of these assets which would consequently reduce the demand for US assets among foreign investors or borrowers.
  • As the real interest rate on US assets goes up,the foreign investor have to pay more as interest on any borrowing of the US assets in US dollars.Therefore,the periodic interest payments in terms of US dollars also increases for the foreign or international financial investors which will eventually reduce the demand for US dollars in the foreign exchange market for US dollars.
  • As a result of such occurrence,the demand curve for US dollars would shift leftward or downward thereby reducing the currency value of US dollars relative to other foreign or international currencies.
6 0
3 years ago
In 2018, Gail had a § 179 deduction carryover of $30,000. In 2019, she elected § 179 for an asset acquired at a cost of $115,000
Colt1911 [192]

Answer:

The answer is: Gail's § 179 deduction for 2019 is $145,000

Explanation:

§ 179 of the IRS Code, allows taxpayer to either:

  • deduct the cost of certain types of property from gross income taxes as an expense
  • allow the cost of the property to be capitalized and depreciated.

If Gail had a § 179 deduction carryover of $30,000 and then she acquired an asset for $115,000, her total § 179 deduction for 2019 is $30,000 + $115,000 = $145,000

8 0
4 years ago
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